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Recruitment Matters Issue 31 February 2015

Global brands join Good Recruitment Campaign More big name brands have signed up to the Recruitment & Employment Confederation’s (REC’s) Good Recruitment charter. Kellogg’s, Diageo, Yell, PepsiCo, McDonald’s and Mercedes-Benz have all pledged to join the campaign. Signatories agree to follow and promote good recruitment practices to candidates and other business partners. REC chief executive Kevin Green says having more bigname brands on the charter shows it has momentum. “As the economy picks up and businesses look to hire more staff, the Good Recruitment Campaign promotes the crucial role of quality recruitment in business success,” he says. “We encourage more businesses both large and small to demonstrate a public commitment to good practice in recruitment. The benefits of this include being able to attract the best talent and ensure they are seen as employers of choice.” The new signees say they’re excited by what the campaign offers and hopes it sets a benchmark for

other businesses to reach. McDonald’s UK senior VP of people Jez Langhorn says the campaign mirrors its own values. “At McDonald’s we want to attract and retain people with the right attitude to fulfil their potential and I’m particularly proud of the development opportunities, benefits and flexible working we offer at all levels to help our people do this,” he says. Yell head of recruitment, CSR & wellbeing, Andrew Groves says: “The REC’s Good Recruitment Campaign backs up exactly what we have always tried to do at Yell, namely put the candidate at

the heart of everything we do and ensure that recruitment is a two-way process where values and objectives are aligned.” Kellogg’s talent and diversity director Ben Lamont says the campaign supports their efforts to develop a strong work environment. “Our people are our greatest asset and so ensuring that we acquire and develop the very best talent is critical to our future performance and growth,” he says. “At its core, the campaign has a responsible and candidate-centric approach, which we strive to demonstrate in every single interaction we have.” The Good Recruitment Campaign spurred the REC’s latest research report, ‘Chain Reaction’, which examines supply chains in the recruitment process. The report examines the recruitment supply process from a candidate perspective, which the REC says is crucial in growing the values of good recruitment. To find out more about the Good Recruitment Campaign, visit www.rec.uk.com/ goodrecruitment

What’s inside The Intelligence 2-3 and REC Talk The future of wages in 2015, the REC’s ‘Chain Reaction’ report, and politics and the economy

in 4-5Best Business The IRP Awards recognise the best recruiters, so who were the winners in their field?

6Legal lowdown

The changes for employment law and regulations in 2015

Institute of Recruitment 7 Professionals IRP Award winners Bally Sethi from ITHR and David Head from Recruitment International

8 Recruitment Business Academy Don’t miss out – sign up for the latest training courses to start the new year off

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Leading the Industry

the intelligence Are we there yet? Pay in 2015 By Nina Mguni, senior researcher at the REC 2015 is set to be an interesting year. A general election is always a cause for economic uncertainty, and potential turbulence in the Eurozone will also add to this insecurity. Nonetheless, this uncertainty comes on the back of an economy that is estimated to have grown by 3% in 2014. And falling oil prices in the last quarter have offered a boon to consumers, as has the recent rise in real wages. Looking forward, the National Institute for Economic and Social Research (NIESR) forecasts that CPI inflation will hover around the 1.8% mark in 2015 and 2016, having hit 1.7% in 2014. Therefore, any changes in real wages will rely on improvements in nominal wages. Wages are showing signs of improvement. At the time of writing, pay growth stood at 1.6% excluding bonuses, compared to the previous year (August-October). In contrast, pay growth stood at 0.8% the previous year, so this year was a marked improvement. And earlier this month, in data from REC/KPMG’s ‘Report on Jobs’, recruiters continue to report growth in permanent starting salaries. One in four (24.3%) recruiters stated that permanent starting salaries were higher than the previous month. While the proportion reporting higher salaries has fallen, the index continues to

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indicate positive growth in starting salaries. The Office for Budget Responsibility forecasts that in 2015, average earnings will grow by 2.4%. What is clear is that skills shortages are beginning to play a role in pay settlements and starting salaries. The REC JobsOutlook data also shows that the proportion of employers reporting redundancies, headcount freezes, reduced hours and reduced pay has generally fallen in the last year. Nonetheless, there are a number of factors that may make employers hesitant to increase pay. Economic uncertainty in EU export markets, the recent decision on holiday pay as well as pension auto enrolment may also make employers cautious. However, bosses will also be aware that they need to make competitive offers to prospective employees. As the Institute of Leadership and Management found in a survey of over 1,000 workers and managers, just over one in three (37%) intend to get a new job in 2015. Alongside this, the JobsOutlook survey in December found that seven in 10 employers (71%) would like to increase the number of permanent workers. Employers will be keen to hold onto existing staff as well as attract those that are looking for new opportunities. This is set to be a busy year for recruiters.

The latest REC research:

Chain reaction Large organisations have a constant need for new people and an ongoing recruitment process to find them. Between the vacant position and the perfect candidate is the recruitment supply chain. The REC, in association with CIPD, the professional body for HR and people development, and the Chartered Institute of Procurement & Supply (CIPS), has produced a report that examines the effect supply chains have on recruitment and how HR, procurement and recruitment professionals develop more strategic working relationships to improve efficiency and quality in recruitment. Most large employers use a resource model to support recruitment in their organisation and almost a third use two or more models. ‘Chain Reaction’ examines how effective those different supply models are, what challenges each present and what the future holds. It answers questions such as: what impact does putting pressures on timescales and driving down cost have on good candidate experience and effective communication of the employer brand? This report is supported by the REC’s Good Recruitment Campaign, which has been developed by the REC with a coalition of business organisations. At the heart of the campaign is a charter that outlines what good recruitment means (see also p1 of Recruitment Matters). Visit www.rec.uk.com/chainreaction

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Leading the Industry

Tom Hadley, director of policy and professional services, looks at politics and recruitment

The View

What political factors can have an impact on the recruitment market in 2015?

Let me take you back to 2008/09. In an 18-month period, while the UK economy shrunk by just over 7%, the recruitment industry lost £8 billion or 30% of our revenue. We closed branches, restructured, cut costs, and we reduced our workforce by 30,000. We did this to survive. Now as we enter 2015 the economy is growing: we have a record number of people in work and unemployment has fallen fast to 6%. Last year recruiters placed more than 630,000 people Last year was a good year for recruitment; 2015 can be a great one. into permanent jobs, and we had 1.1 million contractors and We predict industry growth of 9% but a number of external factors temps out working each day. Our industry grew by over 8% last will have an impact on our market over the coming year, not least the year to £28.7 billion, making us larger and more successful than general election, which is less than five months away. ever before. The outcome of the election is incredibly hard to predict. But what But as always in business we have a few dark clouds on the is clear is that we need to present a strong collective voice to engage horizon. It’s no longer the economy or the jobs market that is positively with all the political parties. The REC’s Manifesto for Jobs causing us a problem — it’s the politicians. calls on the next government to work with us to build the best jobs Recruiters help UK businesses find the talent they need, and market in the world and showcases the positive role of recruiters. we help individuals get jobs that transform their lives. For us to What might a new government mean for our industry? A steady continue to do this effectively we need the politicians to prioritise stream of legislation by a new administration keen to make its three issues. mark? Possibly. It is also true that the next government, whatever its Firstly, improve our education system and end the obsession colours, will be seeking solutions to major labour market challenges with exams and academic grades. We want to see work such as skills shortages, boosting social mobility and building better experience back in the national curriculum. We need world-class bridges between education and work. Our goal is to position our careers advice, better vocational education, and we need the industry at the forefront of these and other debates through our right subjects to be studied so that young people are properly regular data and labour market research and initiatives like our Youth prepared for the world of work. Employment Charter. Secondly, we want a government that is business-friendly. That We need to come together as an industry to drive one underlying means not regulating unless it’s absolutely necessary and creating priority: raising external perceptions of our sector. Perceptions drive a tax system that ensures a level playing field for legitimate behaviour, whether that is calls for new regulations or employers businesses. If government works with industry, we can create bringing recruitment activities in-house. The fact that all REC hundreds of thousands of new jobs and prosperity for all. member agencies have now passed a required compliance test is Thirdly, businesses must be able to recruit the talent they need, a crucial step forward, and complements the work of the Institute regardless of where that talent comes from. We have severe skills of Recruitment Professionals (IRP) to elevate professional standards shortages in the UK, so we need a visa regime that is easy to use through qualifications and ongoing personal development. – and it’s critical that we remain part of the EU, our major trading Which is why in the run up to the election this year we are issuing partner. a call to action to all REC members: work with us to influence The REC’s Manifesto for Jobs highlights our demands for the forthcoming consultations, use our Manifesto for Jobs to build links upcoming election and we need your help to spread the word. with local MPs, and promote the Good Recruitment Campaign We’re calling on our members to talk to prospective MPs. We to your clients. We need to continue driving up standards and want you to shout about our positive role in the economy and compliance. explain how – with political support – we can collectively build Find out more: the best jobs market in the world. www.rec.uk.com/manifesto I’d like to wish all our members a prosperous new year and I’m www.rec.uk.com/goodrecruitment looking forward to meeting many of you during 2015. • You can follow Tom on Twitter @hadleyscomment

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• For recruitment industry insight and advice follow @kevingreenrec

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The Big Talking Point

Best in Business Winners come up trumps at IRP Awards

T

he glittering event, hosted by former Communards musician and current BBC radio presenter Reverend Richard Coles, saw the REC’s Institute of Recruitment Professionals honour the very best in the UK’s recruitment industry. Now in their seventh year, the IRP Awards recognise professional excellence among individuals and companies working in the recruitment profession. Resourcing Group’s Francesca Piccolo took the top award for Recruiter of the Year, while Matchtech Group picked up Best Company to Work for (more than 250 employees). REC chief executive Kevin Green praised the night’s winners. “Hearty congratulations to all of the 2014 winners. These are people and businesses who continually go the extra mile in their mission to help candidates and employers be as successful as possible,” he said. “The quality of entries this year was exceptional and all those shortlisted truly are ambassadors for the high standards and inspirational work the IRP expects of recruiters across the country.”

Recruiter of the Year: Francesca Piccolo, Resourcing Group

Permanent Consultant of the Year, Bally Sethi (centre, with Reverend Coles and Karen Ann Allchurch)

Best Newcomer of the Year: Tom Rankin, Understanding Recruitment

Lifetime Achievement Award: David Head

Best Business Leader: Matt Johnson, Proactive Technical Recruitment

This year’s Lifetime Achievement Award went to David Head from Recruitment International. David has been a part of the recruitment industry for 27 years, 21 of which have been spent as the leader of vision, ethics and values at Recruitment International. “It was complete surprise,” David said. “I’m not a recruiter as such, so to be given an award by the industry came as a complete shock, and a very pleasant one at that.” • Recruitment Matters spoke with David Head about his career on p7.

Best Company to Work for (up to 20 employees)

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2014 IRP Awards winners

The full list of winners Best Newcomer of the Year Winner: Tom Rankin, Understanding Recruitment Highly commended: Lee Anderson, Advanced Resource Managers

Host Reverend Richard Coles

Permanent Consultant of the Year Winner: Bally Sethi, ITHR Group Temporary Consultant of the Year Winner: Francesca Piccolo, Resourcing Group Business Manager of the Year Winner: Donna Thomas, Campion Willcocks Resourcing Business Leader of the Year Winner: Matt Johnson, Proactive Technical Recruitment Best Candidate Experience Winner: David Tait, Redmill Resourcing

IRP Awards 2014

Best Client Experience Winner: Marti Jones, GPRS Recruitment Highly commended: David Tait, Redmill Resourcing In-House Recruiter of the Year Winner: Claire Anderson, Matchtech Group

Best Corporate and Social Responsibility Practitioners Winner: Gi Group Highly commended: Equal Approach Best Back-Office Support Team Winner: ID Medical Best People Development Business Winner: Serocor Best Company to Work for (up to 20 employees) Winner: Give A Grad A Go Highly commended: Cathcart Associates Best Company to Work for (up to 50 employees) Winner: Consilium Group Highly commended: Thorpe Molloy Recruitment Best Company to Work for (up to 250 employees) Winner: Amoria Bond Highly commended: Evolution Recruitment Solutions Best Company to Work for (more than 250 employees) Winner: Matchtech Group

IMA Interim Consultant of the Year Winner: Dan Whitley, Campion Willcocks Interim Management Highly commended:Toni Hall, Penna

Recruiter of the Year Francesca Piccolo, Resourcing Group

Executive Search Consultant of the Year Winner: Yvonne Skingle, Penna

Lifetime Achievement Award David Head

yees): Give A Grad A Go

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Legal Update

Employment law and regulations:

What’s ahead in 2015? Lewina Farrell, solicitor and head of professional services at the REC, rounds up the issues most likely to affect the industry this year Last year was an exceptionally busy year for the REC legal team with 16,000 queries to our helpline. And 2015 is shaping up to be similarly busy – in the run up to the May election the government has been busy churning out a raft of consultations whilst the various parties have been making pronouncements on what they might do if elected. Listed below are some of the issues we are currently looking at:

Travel and subsistence In December 2014 the government opened a consultation on travel and subsistence, and how it is applied by umbrella companies and employment businesses engaging temporary workers on overarching contracts of employment. The consultation, which closes on 10 February 2015, proposes prohibiting the use of salary sacrifice to reclaim travel and subsistence but it looks like any changes will not come into effect until 2016. The REC will be submitting a response and we welcome members’ feedback about their concerns.

ITEPA reporting requirements Changes were made to the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) in April 2014 increasing the potential liability of employment businesses supplying temporary workers through intermediaries. New reporting requirements to back up these changes will come into effect from 6 April. At the time of writing we are waiting for the final regulations but we already know that the party with the end contract with the client will have to provide significant amounts of information on temporary workers engaged via intermediaries, including personal service companies. This will increase the due diligence down the supply chain and will see increasingly onerous

provisions around tax and national insurance. The first quarterly report is due in August.

Holiday pay In November the Employment Appeal Tribunal held that holiday pay should include non-guaranteed overtime. A judgement in Lock v British Gas will decide whether commission should also be calculated into holiday pay (expected February), though given the general direction regarding holiday pay it is likely that commission should be included in holiday pay. At the end of December the government introduced new regulations limiting the time period for which a worker could raise an unlawful deductions of wages claim in relation to holiday pay. Finally, the European Commission has opened a general consultation on the Working Time Directive, which will close on 16 March.

AWR and zero hours There has been increasing reference within political debates to the use of both the Swedish Derogation and zero-hours contracts, with the Labour party in particular saying that if it wins the election it will review Swedish Derogation contracts.

Conduct Regulations At the time of writing we are still waiting for new Conduct Regulations. Although hugely important to the recruitment industry, publication has taken longer than we hoped. One amendment should have come into force in early January, prohibiting advertising vacancies exclusively overseas. We do not expect any further amendments to the Conduct Regulations to come into effect until the end of this year or early 2016. The REC will keep members advised of developments on all of the above.

Business development: Debenhams Ottaway Solicitors Debenhams Ottaway Solicitors is a leading legal adviser to the recruitment and staffing industry. The firm became an REC Business Partner in September 2014. As recruitment and staffing specialists the firm draws on its understanding and experience of the sector to provide practical and commercial advice focused on helping its clients to make the most of opportunities and deal swiftly and effectively with any problems. Three of the lawyers in its sector team are listed as leaders in

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their field by the Chambers guide, an independent guide to the legal profession. With offices located in St Albans the firm is conveniently located for clients based in London, the South East and Midlands. The firm is best known in the sector for its litigation, employment and commercial work, which has included a number of high profile cases reported in local and national media. REC members benefit from discounted rates, fixed fees and access to sector specific DO Debt Fast, a debt recovery service for unpaid temp, perm and transfer fees. For more information call 01727 837161 or email recenquiry@debenhamsottaway.co.uk

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Inspiration

Behind the scenes at the Institute of Recruitment Professionals

IRP Award winner

What I know

Bally Sethi is the Head of Legal Search at ITHR Group and the winner of Permanent Consultant of the Year at the 2014 IRP Awards

David Head won the Lifetime Achievement Award at the 2014 IRP Awards. He is also the Leader of Vision, Values & Ethics at Recruitment International

Congratulations on your award. How was 2014 for you? Thank you! It was a really good year – a bit of a roller coaster. We’ve been so busy with work in the Middle East and most of our focus has been there. You’re a qualified lawyer. What was the impetus for becoming a recruiter? When I finished university, I was very much encouraged to go down the barrister route, but my heart was never in it. I was interviewing for pupillage, but before I started, I was looking for legal recruitment positions. I enjoyed working in a more commercial environment, and I knew fairly early on that was what I wanted to do. What are some of the challenges of recruiting for the Middle East? Culturally, it’s very different, and you’ve got to be very mindful of that. It’s a bit harder out there because it’s very relationship-orientated, especially in legal recruitment. I work more as a talent scout and I cherry-pick candidates I think are very good and take them to companies they want to work for. From there, you start to build relationships with people. If you’re doing a good job and finding good candidates, they will keep coming back to you. What is the biggest challenge facing the recruitment industry? Everybody seems to be hiring and there’s a massive demand for talent, but there’s a shortage of candidates. Law firms are very keen to retain their top guys and it’s very difficult to tempt people across. What piece of advice would you give your younger self on her first day? Pay it forward. This is an industry about building relationships and building connections. If somebody calls me up in the evening or on the weekend seeking advice, you’ve got to do those things to build up your network, even if you don’t get a placement. I find that has really helped me this year: most of those relationships started that way and are now transactional. What does 2015 hold? We need to hire more staff, adding to the team and making it grow. My focus will remain in the Middle East, and we need more to cover London and the US market.

Embracing Vision, Values & Ethics? There’s still plenty of work to do because we need to get more people into our industry from universities and schools, and we need to show that you can have a really good career in recruitment. A specialist industry… If you go back to the 1980s, the skill set was slightly different and most of the big companies were generalists and high street players. Nowadays, the focus is inch wide, mile deep. You really need to be a specialist in your area. … and a more open one too We have owners now that are way younger than I am, and they spend a lot more time talking to one another. Recruiters in the 80s returned to their ivory towers and never shared anything with anyone. Recruiters have become far more professional and more consultative. Communication is vital Consultants rely too much nowadays on email, LinkedIn and maybe a bit too much on the technology side. The contact of choice used to be by telephone, and I think a lot of people have lost the art of communication. One of the things you need to be is very adaptable, and be willing to listen and learn. People need to come in with a very open mind and be very determined. Election year will be tough One of the big things people will fighting over is the NHS workforce, and if you look at what the government’s record is over the past 10 years it is scandalous. But who gets all the blame? Agencies. It’s easy to blame agencies. I don’t think any of the current party leaders have any real idea of what we do as an industry, but I think the REC does a good job of educating them.

To keep up to date with everything the Institute of Recruitment Professionals is doing, please visit www.rec-irp.uk.com

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Events and training

Get the RBA’s latest training The Recruitment Business Academy is one of the most respected and widely recognised training providers in the recruitment industry. We make our aim very clear: to understand you and your business

providing support in the way you need it. Whether you are looking for a short sharp sales improvement session to motivate your team or if you need a senior-level leadership programme, we have something to suit you.

Course

Date

The RBA has a host of new training courses coming up in late January and February. If you want to book, contact our training team at info@rec.uk.com or phone 020 7009 2100.

Location

Member Price

Non-member price

Essential Skills for Temporary Recruiter

27th January

Leeds

£389

£595

Successful Interviewing

27th January

London

£389

£595

Telephone Sales

27th January

Manchester

£389

£595

Essential Skills for Permanent Recruiter

28th January

London

£389

£595

Proactive Business Development

28th January

London

£389

£595

Introduction to Recruitment Practice

28th-29th January

Manchester

£649

£875

Successful Account Management

29th January

London

£389

£595

Getting Started with Headhunting

3rd February

London

£389

£595

Recruitment Law – Understanding the Essentials

10th February

Bristol

£389

£595

Telephone Sales

10th February

London

£389

£595

Start Up Your Own Agency

10th-12th February

London

£1,275

£1,275

Recruitment Law – Supplying Limited Company Contractors

11th February

London

£239

£315

Candidate Sourcing and Management

11th February

London

£389

£595

Balancing Act

11th February

Manchester

£699

£915

Recruitment Law – Understanding the Essentials London

12th February

London

£389

£595

Successful Interviewing

12th February

Newcastle

£389

£595

Essential Skills for Temporary Recruiter

17th February

London

£389

£595

Close the Sale

17th February

London

£389

£595

Proactive Business Development

18th February

Birmingham

£389

£595

Introduction to Recruitment Practice

18th-19th February

London

£649

£875

Advanced Management Skills

19th February

Leeds

£699

£915

Perfect Client Meeting

19th February

Manchester

£389

£595

Essential Skills for Permanent Recruiter

24th February

Birmingham

£389

£595

Telephone Sales

24th February

Bristol

£389

£595

Progressive Sales

24th-25th February

London

£699

£915

Essential Skills for Temporary Recruiter

25th February

Bristol

£389

£595

Management Essentials

25th-26th February

Manchester

£699

£915

Successful Account Management

26th February

Leeds

£389

£595

Scale Up Live Join Kevin Green for the launch of the REC’s Scale Up campaign on 27th January in London. Kevin will introduce the campaign, including exciting new research the REC will launch at the event. He will also be discussing the latest developments in the recruitment marketplace. To book your place, visit www.rec.uk.com/events

Recruitment Matters The official magazine of The Recruitment & Employment Confederation Dorset House, 1st Floor, 27-45 Stamford Street, London SE1 9NT Tel: 020 7009 2100 www.rec.uk.com

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Membership Department: Membership: 020 7009 2100. Customer Services: 020 7009 2100 Publishers: Redactive Publishing Ltd, 17 Britton Street, London EC1M 5TP. Tel: 020 7880 6200. www.redactive.co.uk Publisher: Aaron Nicholls aaron.nicholls@redactive.co.uk Tel: 020 7880 8547 Editorial: Editor Michael Oliver michael.oliver@redactive.co.uk Tel: 020 7009 2173. Production Editor: Vanessa Townsend Production: Production Executive: Rachel Young. rachel.young@redactive.co.uk Tel: 020 7880 6209 Printing: Printed by Woodford Litho © 2015 Recruitment Matters. Although every effort is made to ensure accuracy, neither REC, Redactive Publishing Ltd nor the authors can accept liability for errors or omissions. Views expressed in the magazine are not necessarily those of the REC or Redactive Publishing Ltd. No responsibility can be accepted for unsolicited manuscripts or transparencies. No reproduction in whole or part without written permission.

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Recruitment Matters- February 2015