Recruitment Matters - July/August 2023

Ma ers Recruitment

REC recommends a ‘Darwinista’ mindset

Agroundbreaking report by the REC has made recommenda ons to help recruiters take advantage of the rapid development of technology such as AI to streamline and enhance processes and candidate journeys. The report is published as hirers cope with labour shortages caused by an ageing popula on plus the a er-effects of the pandemic and Brexit, while recruiters are seeking to add more value and help clients tackle these challenges.

Neil Carberry, REC Chief Execu ve, said that talent will be scarcer in this decade than in any of the previous four. Recruiters need to prepare because what C-suite execu ves want now is not necessarily what recruiters have sold in the past.

“We need to become Darwanistas by taking careful steps that bring marginal benefits rather than ‘big bang’ projects,” Carberry said.

The report suggests that recruiters look for ways to diversify into adjacent markets such as training or appren ceships, and use technology to provide services that are valuable to candidates and increase their own revenue by suppor ng efficiency and growth. Technology will also

help them to nurture and facilitate candidate communi es.

The report stresses that recruiters should not adopt technology for the sake of it, but should use CRMs to improve performance and streamline their use of vendor management so ware. It adds that compliance tools are ‘essen al shields’ for recruitment firms.

The authors say: “Genera ve AI presents innumerable use-cases, and perhaps no other technology has been so accessible, so quickly, directly to individual users. In this light, it’s incumbent on us all to explore how this technology could help us. By

doing your due diligence, tes ng tools thoroughly, and keeping results under review, you’ll put yourself in a be er posi on to leverage solu ons effec vely and responsibly.”

They suggest that be er use of IT is the basis of any digital transforma on process. By aligning technology with their strategy, recruiters will get the most out of their exis ng tech investments and leverage all the so ware they pay for but never use.

The report, which also draws on research by organisa ons including Randstad and the World Employment Confedera on, is on the REC website.

Technology

the view...

CAMPAIGNS

In June I had the privilege, at the invita on of the Government, to represent the UK business community at the UN in Geneva. The annual Interna onal Labour Conference is where global labour standards have been set since 1919, and this year we discussed everything from trade union rules to increasing global commitment to appren ceship provision.

From a UK perspec ve, interna onal nego a on can seem slow, even remote – but it is vital. The REC being asked to take on this role was a real recogni on of the standing and skills of our industry. Perhaps the most relevant challenges emerged in work on the budget for the organisa on (where we had to work with the Government and the TUC to protect spending on EDI issues) and on labour protec on.

Listening to the debate on labour protec on was like jumping in a me machine. Some of the a tudes to temporary work we heard could have come from an era in the UK’s distant past. Nevertheless, we have seen other countries, notably Norway and Mexico, slip back in this area in the past few years. The argument is never truly won. Pleasingly, there was a strong team from our worldwide organisa on the World Employment Confedera on sca ered across the global business group, and we pushed back strongly to tell the real story about the value of agency work and the good it does. But the discussions were a reminder of how much there is s ll to do to sell the benefits of our sector to Governments, unions and clients all over the world.

With a poten al change of Government in the UK next year, we need to be aware of such threats here. Selling the difference that our sector makes has never been more important. From our economic impact, which runs to billions every year, to the opportuni es we open up – the REC Restart work has brought over 1,000 people out of long-term unemployment in the past 18 months – our businesses make a difference. But we must never re of telling people that. They need to understand what we do. Our campaigns this year will help them do that.

Shazia Ejaz, Director of Campaigns at the REC

Our campaign work is bearing fruit – the Government is listening to us on several issues that could nega vely impact recruiters. This is especially important as we move into autumn when policy announcements are made around party conferences, the Chancellor issues his Autumn Statement, and poli cians think about what they tell cons tuents in the general elec on.

We have been pushing for the regula on of umbrella companies for a few years and, a er the call for evidence on the umbrella company market last year, the Treasury has at last launched a further consulta on on proposals to regulate them. Meanwhile, senior officials at the Department for Business and Trade agreed to meet and hear our concerns about the Workers (Predictable Terms and Condi ons) Bill. Currently progressing through Parliament, the Bill seeks to offer the right to request more predictable working pa erns in a way that will undermine exis ng flexibility within the temporary labour market. We reiterated our concerns about the inclusion of agency workers in the Bill, and argued for changes to parts such as the point at which people will be able to request stable hours. For more details on the Bill and its implica ons, see my colleague Rachel’s ar cle on p6.

In addi on, the Home Office is looking to expand the documents eligible to check for a right to work, subject to technology and security requirements. It will also undertake a formal internal assessment process regarding making accredita on mandatory, which we have pushed for.

But campaigning isn’t easy and some mes you must try different tac cs. One example is our work to get clarity for members in social care in Northern Ireland on whether use of agency social workers will be banned. We had to go to local media when the Department of Health Northern Ireland refused to consult with us. The media has also picked up our survey that found four in ten children’s social workers who work as temps through agencies will leave if proposed curbs on agency social workers go ahead in England. We have not given up on an eventual rethink on these two proposals.

Government is listening – but there is much more to do

Selling the difference our sector makes has never been more important, says Neil Carberry, REC Chief Execu ve

If you want to keep up to speed with all things recruitment then follow me on Twi er @RECNeil

the intelligence...

Lots of ideas, but s ll no sign of the Single Enforcement Body Hamant Verma, Communica ons Manager at REC

It is disappoin ng that we are s ll wai ng for the Single Enforcement Body (SEB), given that this July marks four years since the Government opened a consulta on on it. Responses showed such wide-ranging support from labour market experts that Government agreed to implement it – since then, all we have seen is tumbleweed.

We know that non-compliance is s ll an issue in the labour market, despite a empts by our members to reduce it and their willingness to act against rogue employers.

In the REC’s view, the SEB will encourage closer collabora on between the different strands of labour market enforcement and will make it easier for workers to redress issues. We regularly offer to work with the Government to support its crea on. We could, for example, use our extensive insight from the frontline of the labour market to advise on the detail of how these powers might be extended. Our members want a robust and fair labour market where workers’ rights are protected and compliant businesses thrive.

Think-tank Resolu on Foundaon is among a host of learned organisa ons calling for the promised SEB to materialise. Hannah Slaughter, its senior economist, gave a presenta on to REC members in June.

As part of her talk, she provided sta s cs on non-compliance, showing that employees aged 65 or older are more likely to have no paid holiday en tlement or payslips. The stats also reveal that just under 20% of those working

Resolu on Founda on’s Hannah Slaughter said that lower paid workers are least likely to turn to employment tribunals

in agriculture, and about one in ten hospitality workers, report ge ng no payslip. Employees of small businesses and those on low pay are most likely to suffer from non-compliance with regula ons about supplying payslips, she said.

Slaughter also explained that the number of labour inspectors per 10,000 employed persons is low in the UK compared to other OECD countries. Workers on lower pay are the least likely to turn to employment tribunals, while employees earning £25,000 to £29,999 are the most likely to use them.

Slaughter went on to suggest

that the Na onal Minimum Wage regula ons are too complex for some firms.

The REC shares most of the Founda on’s views on the SEB. Slaughter told the mee ng that the Founda on would like to see an SEB with a broader remit which includes ‘all workplace rights’, including those that currently do not sit with any enforcement body, such as holiday pay, sick pay and parental provision (ie, the enforcement of statutory maternity/ paternity leave and pay).

It also advocates a ‘firewall’ between the SEB and immigra on enforcement authori es. Other sugges ons for the SEB include embedding a ‘genuine model of social partnership’ by giving workers (or workers’ representa ves) seats on the board of the new body alongside business managers and experts.

REC members at the talk broadly agreed when Slaughter said that the SEB needs adequate resources to achieve its aims. They were par cularly interested to learn more about the Founda on’s sugges on that a range of work and business bodies should be able to make a ‘super-complaint’ to the new SEB to flag systemic or emerging prac ces that undermine worker rights.

Interes ngly, Slaughter said that the think-tank is calling for the number of labour market inspectors to double, although this would have to be partly funded from the public purse. There are clearly plenty of ideas to help the Government once it decides to establish the new body.

big talking point

Re-generate

The future of work: how can we retain the mul -genera onal workplace in a post-pandemic world?

Most changes in the world of work happen slowly. The global Covid pandemic provided a unique opportunity to try a massive social experiment – what happens when we tell everyone to work remotely? Of course, not everyone could or did, however, it was a transforma onal change for many, and we are s ll living with the consequences.

Predic ng the future of work has become a million-dollar ques on. It will have a profound effect on the recruitment industry, both through its impact on recruitment firms and on the candidates they supply. However, as some organisa ons summon staff back to offices, others se le down to hybrid working and a few abandon their offices, there is li le agreement about which will become the mainstream.

Statistics

One issue is the way the changes have divided genera ons. In general, the young, living in shared houses with no dependents, struggled, while older workers with houses and family commitments welcomed more me at home. Younger people were more likely to be laid off and to miss training and promo on opportuni es. Older people were more likely to save money.

Covid itself affected young and old differently and this led to a further genera onal split. Many experienced professionals subsequently chose to re re early, or scale down their work. Some younger people say they have been inspired to switch to something that ‘makes a difference’.

How organisa ons respond to these conflic ng needs and maintain a mulgenera onal workplace is a cri cal issue

92% of millennials say flexible working is a top priority when job hun ng.

Only 20% of adver sed jobs offer flexibility.

70% of job seekers say they want to work for a company commi ed to diversity and inclusion.

More than 50% of employees want a great work-life balance.

41% of employees say ethics and values are most important for them.

SAGE: The Role of HR in 2030 report

both to offer advice and to apply in their own organisa ons.

“Age diversity is as important as gender and ethnic diversity in impac ng a company’s bo om line. All companies require that mix of experience and ingenuity and cannot afford to generate a culture of agediscrimina on (either for the old or the young),” according to Dr Eliza Filby, a specialist in genera onal intelligence, in her report ‘Mind the Gap: Managing a Mul -Genera onal Workforce in the Age of Hybrid Working’.

However, generalisa ons are dangerous. “Genera onal analysis is a star ng point, not an end point. Genera onal stereotypes are to be avoided, but understanding the context, values and behaviours of each cohort can help create empathy across the genera ons and raise the consciousness of leaders to ensure be er decisions are made,” Dr Filby says.

While recruiters and employers should therefore pay a en on to the stats, they should compare general surveys with what they see in specific sectors and hear in conversa ons with candidates. They can also ask HR managers how much they know about their own employees.

Flexible and holis c “Employees of the future will want a much more flexible and holis c approach, par cularly as the next genera on enters the workforce,” according to April Marcot, Chief People Officer at global recruitment firm McArthur, who contributed to a report by Sage ‘The Role of HR in 2030’. “They will push businesses beyond their comfort zone.”

Data will become increasingly important and recruiters should not only use data more innova vely themselves, but should also expect to see more of this from clients. Sage’s report highlights ‘People analy cs-based insights that drive business impact’ as one of its top five trends for the next seven years.

When it comes to adjus ng our working styles and environment to suit all ages, there are myriad ideas. Again, recruiters can add value, not only by promo ng innova ve employer prac ces to candidates, but also by sharing others’ experiences with clients and explaining the response they’ve generated. Some are going further and prac sing what they preach.

Jackson Hogg, for example, introduced a four-day week for all employees in August 2022 and, according to Aoife Owens, the firm’s Associate Director for

People, this has improved collabora on as well as aiding wellbeing and reten on. “We did a benefits review and asked what was the most valuable thing we could give our people. We realised it was me,” she says.

This has the poten al to appeal to all genera ons and personali es – those who want to develop hobbies and those who have family commitments. “We’ve had clients ask us how it works and whether it could help their organisa on – there’s a real appe te for this,” Owens says. “The data adds up. Why wouldn’t you do it? We thought it sounded great but wouldn’t work in recruitment. The pandemic made us realise that so much more is possible.”

Dr Filby lists other changes that could help to a ract and retain the workforce of the future – from offering support with home office infrastructure, equipment and costs, to evolving the ethos and purpose of head offices and even se ng up deals with hotels to enable hybrid workers to stay close to the office when they travel in occasionally.

Wellbeing is another hot topic and more employers are looking at hiring wellbeing prac oners and introducing processes to prevent ‘burnout’

from constant online mee ngs and connec vity.

Employees are also reportedly becoming more likely to look for strong environmental, social and governance creden als – something that execu ve search firm tml Partners has taken seriously by becoming B-Corp Cer fied. The process involved se ng up a founda on dedica ng 5% of staff me to community ini a ves. “Staff engagement is essen al, and twice a year we all do a personal carbon footprint assessment and discuss ways to improve,” explains Charlie Green, the company’s MD.

Developments like this highlight the ar ficiality of the five-day nine-to-five job. If we want to en ce people who can afford to re re back into jobs, we must stop thinking in terms of the hours introduced for 19th-century banks and ask what works for people today.

Dr Filby points out that “the workplace has become more informal and more equitable. On video calls, everyone has a seat at the table and par cipants all appear as equal-sized randomly arranged rectangles.” Lockdowns ‘democri sed’ workplaces and forced managers to trust employees to structure their workloads. Younger workers are also reportedly more comfortable with providing digital feedback, so may be less shy about expressing what they like and dislike.

These gains should be op mised so that people can iden fy what they want from a job, beyond the pay packet. This will differ according to age and circumstances, but also by personality type – it could open doors for people with disabili es or who are neurodiverse.

There are also dangers. How can younger workers access training and experience without working alongside experienced colleagues? Will older workers fail to develop crucial digital skills if they are at home? Are people who work remotely more likely to be ignored or become disengaged? Opportuni es for fraud may increase and organisa ons should think hard about culture.

What is clear is that the world of work is becoming less homogenous – there are more opportuni es for employers and individuals to differen ate themselves. Recruiters will have to use all the tools at their disposal to understand what candidates want and where they are likely to get it.

legal update

Predictability law may undermine temporary contracts

Rachel Davies, REC Solicitor & Commercial Adviser

The REC is fiercely campaigning against the proposal for a Bill to request predictable working pa erns, but there is s ll a strong chance it will become law in early 2024. The Workers (Predictable Terms and Condi ons) Bill provides for two separate but very similar sets of rights, one for agency workers and one for workers.

Broadly speaking, the Bill allows a worker or an agency worker to apply for a change to the terms and condi ons in their contract to obtain a more predictable working pa ern if there is a ‘lack of predictability’. The change relates to their working hours, days or dura on of the contract. Once the applica on is received, the hirer or employment business must respond within a month and, if it is accepted, a new contract reflec ng the agreed change to their work pa ern should be provided within two weeks.

It is important to note that, as with the flexible working regime, the legisla on will provide the right to request this rather than a right for the request to be granted. Employers

Future of the Workforce

Stuart Johnson, Bullhorn

and employment businesses can refuse the request for a number of reasons which to a large extent mirror the reasons for refusal in the flexible work regime. If you have a good business reason for rejec ng the request, you must explain the reasons sufficiently to the worker to jus fy refusal. You will need to ensure that you have a suitable process in place to deal with the requests.

What is surprising is the omission within the Bill to define what is meant by ‘predictability’, although it appears to encapsulate anyone whose working pa ern (in terms of days or hours) varies in a way that creates uncertainty for them. For example, someone who is not provided with a guarantee of hours or is on a fixed-term contract of under 12 months would be deemed as not having predictability.

There are clearly concerns with this ‘one-sided flexibility’, as the Bill appears to eliminate dual flexibility under which agency workers provide their services. This is where there is no obliga on to work or be provided

I recently read a thought-provoking report by PWC on what the future of the workforce may look like in 2030.

First, however, I will provide some context by jumping back 13 years to recall past predic ons of the future. Back in 2004, there were no iPhones, Ne lix, YouTube or mainstream access to Facebook. LinkedIn was a year old and it was rare to work remotely. Furthermore, cloud technology was just emerging – much like ar ficial intelligence (AI) is today.

We are living through a fundamental transforma on in the way we work. The emergence of AI is impac ng the skills that businesses are looking for in their people (37% of people are worried about AI pu ng jobs at risk). The study, which includes a survey of 10,000 people in China, the US, the UK, India

with work, which is a voluntary choice for many agency workers. The Bill therefore has the poten al to undermine the fundamental purpose of temporary work. Furthermore, the main dis nc on between employees on a contract of employment and agency workers on contracts for services is that there is no mutuality of obliga on. By introducing a ‘predictable’ working rela onship, it could affect the employment status of workers and cause greater confusion. It may also deter employers from hiring agency workers.

The REC has already made representa ons to the Department for Business and Trade. We will con nue to monitor the progress of this Bill and clarify to civil servants and Ministers why the Bill in its current form doesn’t work for temporary workers.

and Germany, postulates four possible Worlds of Work in 2030. AI is one major opportunity and the growth of green jobs is another.

In the Green World, the prime focus is society, corporate responsibility and sustainability. Workforces are a racted to an organisa on because they believe in its mission (23% say that doing a ‘job that makes a difference’ is most important to their career). This will lead to a rise in green jobs, with an emphasis on conscious roles with a posi ve impact on the future.

Technology is used to ensure there is minimal impact on the environment and those around them as well as to enhance the scarce resources those businesses have. Ar ficial intelligence will have a big impact on the future of green jobs, including enabling the workforce to accomplish more with a lower environmental footprint.

There is Government support for a Bill to address concerns about ‘one-sided flexibility’ at work, but the right to request predictable working pa erns could have problema c consequences.

Scarce skills and global ambi ons

What I know Q&A

Northern Ireland remains confident, but employers are hiring more temps. Staffline NI is the largest recruiter in Northern Ireland and the second largest on the Island of Ireland, with 12 branches and 14 onsite loca ons. We have over 30 years’ local experience under the Diamond and Gra on brands. Demand for permanent staff is slowing as more employers seek temps. A er the pandemic, the permanent market boomed. There is more cau on now, but people are hiring.

Candidates are in short supply.

A broad issue for recruiters is a lack of candidates. Northern Ireland has the lowest rate of unemployment in its history and the highest rate of

economic inac vity in the UK. Many lower paid workers go to the Republic where infla on is lower and the minimum wage is higher. The tax system means that highly skilled employees who re re early don’t benefit from earning more. Meanwhile, the UK’s immigra on policies make it easier for Europeans to move to the Republic.

Diversity and flexibility are key.

Some businesses are struggling, but tourism is booming and the shipyard in Belfast has its first order for naval vessels in 25 years – but we need skilled people. Mechanical and electrical engineers are scarce. We are talking to clients about diverse and flexible workforces, but there is more to be done.

What is special about membership organisa ons?

Many people are unaware of the sector, but it offers great careers. It’s commercial, yet profits are reinvested and many people like this ethos. It offers a huge variety of roles, from events management to marke ng, training to lobbying. We have eight key departments focusing on the core roles, and the diversity of subject ma er is matched by the diversity of the people. A large healthcare membership associa on is completely different from an organisa on represen ng logis cs firms, so there are wide career choices.

How did you get involved?

I fell into the sector 12 years ago and it changed my life. It’s

good to work with people who feel they have a stewardship role to support members and pass the baton to another genera on.

Why are you now growing rapidly?

We work remotely and the pandemic created a pool of talented recruiters wan ng the same. Increased video interviewing also helped us to do more, faster. We’re now launching an execu ve search service which will use psychometric tes ng and behaviour analysis to help organisa ons’ boards agree on the person they need and then help us to iden fy the best people. We have the biggest database of people with membership body experience in the UK (possibly in the world) and we’d like to go global in the next few years.

Donna Parker is MD of the Branch Network and Onsite Divisions, Staffline Recruitment NI

Dennis Howes is Co-Founder of Membership Bespoke

Skills for a zero-carbon future

Green jobs will grow only when we have a green jobs market infrastructure

By Professor Katy Mason and Professor Karen Dale from Lancaster University Management School

The UK must accelerate progress towards the greening of its economy. Defini ons of what green jobs are vary, but we think they are those that require the skills to use and innovate low- or zero-carbon technologies, and prac ces that do less or zero harm to the environment. Mul ple linked crises caused by climate change, energy supply and cost of living necessitate immediate growth in green jobs to enable our economy to flourish.

But the UK lags behind its European counterparts in progress towards an effec ve infrastructure to support green growth and green job transi ons. A principal inhibiter of growth in jobs of this nature is the lack of an effec ve green jobs market infrastructure. By that we mean a structure that sits below the jobs market, enabling those searching for work with the right skills, and those with the right opportuni es to develop those skills, to coordinate ac on.

This requires a significant effort from mul ple agencies including employers, educa on ins tu ons, recruitment agencies, public sector authori es and professional services. They all need to be connected by suppor ng technical infrastructure that enables the management of the mely training, recruitment and employment of skilled workers. We have been working with a number of different organisa ons to try to secure funding and design new research that can be easily translated into ac on to help build such an infrastructure in Lancashire and Cumbria.

The na onal ‘Just Transi on’ Jobs Tracker indicates that 6.3 million jobs are likely to be affected by changes in the green jobs market in the near future. As one project partner’s CEO told us: ‘There is no job that will be unaffected by green changes. There is a desperate need for detailed, experien al evidence so that we get investments in the right ini a ves in the right places.’ In November 2020, the UK government’s Ten Point Plan for a Green Industrial Revolu on set out support for up to 250,000 green jobs by 2030. Companies and professional bodies recognise this need, but without considerable investment up to 660,000 jobs could be at risk, according to the TUC.

Ongoing regional work by the Work Founda on at Lancaster University reveals acute challenges faced by the social, spa al and economic characteris cs of Greater Lancashire and Cumbria, even though the region is forecast to benefit from large numbers of new green jobs. Having the kind of green jobs market infrastructure we talk about above will be cri cal, as changes to the industrial make-up of the economy and associated policy interven ons will require a range of stakeholders to work together to make these jobs come to frui on.

A number of regional organisa ons and networks have been developed specifically to work on the green jobs/ net zero transi on (eg, Net Zero NW, DecarboN8, HyNet NW) and the work of cross-cu ng organisa ons is now incorpora ng green jobs into regional policy ini a ves (eg, N&W Lancashire Chamber of Commerce’s work on a Local Skills Improvement Plan Trailblazer). We see significant opportuni es for researchers like us to work in partnership with regional and na onal stakeholders to create a mechanism that could connect regional projects and help to establish the market infrastructure we need to support green jobs. For exis ng exper se and networks, look to Lancaster University’s Environment Centre, Centre for Global Eco-Innova on and Pentland Centre for Sustainability in Business.

What we do know is that the current infrastructure is failing: it is not fit for purpose. The lack of a consistent categorisa on of ‘green jobs’ across sectors is inhibi ng movement and crea ng confusion for employers and employees. Professional advisory services are likely to be key for any ‘green jobs’ market, with advisory services from accountants, bank lending officers, consultants, insurers and so on, needing to be ‘greened’ to support organisa ons as they green their opera ons.

We need to act quickly to develop an effec ve green jobs market infrastructure. It would go some considerable way to address the significant gap between green aspira ons, the capacity to do certain sorts of green jobs, and the establishment of the professional support mechanisms to match people and work.