Recruitment & Employment Federation

UK’S RECRUITMENT INDUSTRY IN GOOD HEALTH

Helen Reynolds, Acting Chief Executive Officer, The Recruitment and Employment Confederation

Recruitment is a dynamic and fast-paced industry that has had more than its fair share of critics over the years. Even now, there are still common misconceptions about what the industry does and what it brings into everyone’s lives. Perhaps the £24.8bn the private recruitment industry currently generates for the UK economy is the best indicator of its positive position.

The fortunes of the industry are inextricably linked to the overall health of the UK economy, GDP and most other economic indicators, all of which remain relatively strong because of the continuing tight labour market and challenges presented by the ongoing skills shortages.

Our research programme and monthly Report on Jobs, published in conjunction with KPMG and NTC, constantly tell the story of how these shortages remain a key problem for recruiters who have to work within the restrictions presented by candidate availability.

The Recruitment and Employment Confederation (REC), the trade association for the UK’s private recruitment industry, is very much at the vanguard of bridging the gap between employer and jobseeker.

The REC’s Industry Research Unit published its first ever 360° Tracking Report earlier this year, which was the result of a programme running continuously for more than a year. It presented a very upbeat snapshot of the industry with strong performances on all fronts.

There was evidence of sustained levels of satisfaction among agency workers that had increased significantly over the year, while most agencies and employers remained optimistic about short-term business prospects in the coming 12 months.

Its key findings highlighted that quality of service was rated by both recruitment agencies and employers as the key factor in appointing an agency followed by the price, the importance of which, however, had increased by 6 per cent in the latter part of the year.

Following hot on the heels of this survey was further evidence from the Chartered Institute of Personnel and Development (CIPD) that showed that three-quarters of all UK employers rely on recruitment agencies to fill their vacancies. Another 51 per cent of employers believe they have a partnership with these agencies.

This evidence bears out the continuing trend of employers using agencies, as it is easier to outsource than finding candidates themselves — especially in the prevailing conditions of the job market. This is because employers find using agencies a much quicker and effective process than recruiting in-house.

At face value, using a recruitment agency to source staff may look costly. But the CIPD’s survey showed that on balance employers recognised recruitment agencies offer value for money. Direct recruitment has immediate and indirect costs to a business, for example in utilising the valuable time of managers. Also, the quality of candidates is still overwhelmingly important when employers come to assess the credibility of agencies. For us as recruiters, it is encouraging to see that HR plays such a crucial role in procuring staff services. Often, there is a danger that the human element is forgotten when procurement professionals are left to make their staffing decisions in isolation.

The REC’s core value is to ensure that the best possible service is delivered to both employers and jobseekers. All our 8,000 corporate and 5,500 individual members are committed to this when they join by agreeing to adhere to a 10-point code of professional practice.

In response to feedback from members, at the end of last year the REC effectively raised the bar in industry standards by making widespread changes to its level of entry for membership and enforcing the code of practice. These included measures to demonstrate their commitment to REC standards in tandem with a formal pledge undertaking ongoing co-operation with the association.

As a result of these changes, the REC has since recruited four assessment officers to carry out inspections at a percentage of member offices to approve services being delivered against the code of professional practice.

The REC has its own internal complaints and disciplinary procedure, which it can use against any members that are reported to be falling short of the exemplary standards expected of them.

The recruitment industry is currently going from strength to strength, and we believe it is our role to create the best possible environment in which our members can do business and their end-users can be guaranteed the best possible service without exception.

Our other duty to members is to act on their behalf in ensuring they are given the best possible advice and guidance on issues affecting the industry, such as the introduction of new legislation at both national and European levels, and the need to be constantly aware and focused on economic and demographic changes that could impact on them.

Most significant of all legislation was the introduction of the Employment Equality (Age) Regulations last October that completely changed the language of job descriptions in outlawing age discrimination for both younger and older members of the workforce.

The regulations recruiters viewed as a positive step towards protecting all job applicants and workers. It is seen as another step along the road in bringing about the reality of diversity, for which there is now a real business case if employers are to be given access to the widest possible pool of candidates.

This was again highlighted with the introduction of the Gender Equality Duty in April, when public authorities were given a timely reminder of their role in promoting diversity and equality. Recruitment professionals supplying into this sector have been playing a key role in ensuring that procedures reflect these new obligations.

Diversity has been the buzz word within all spheres of the employment business for some time now but not without due cause. The demographic changes brought about by an increasingly multi-faceted population indicate that the profile of the average member of the workforce is no longer a non-disabled white male aged under 45. He is becoming something of an endangered species, as by 2010 he will only represent 20 per cent of the UK’s workforce.

REC members are now extremely well-placed to provide advice and guidance to employers on how this shift in our population can be addressed positively.

In late 2005, the REC launched the award-winning ‘Diversity Pledge’ in conjunction with Jobcentre Plus, which gave members a chance to make their own individual commitment to harnessing the talent and potential of all.

With more than 600 members and non-members now signed up to the pledge, the REC has now introduced a new service ‘Diversity Assured’ to enable employers to identify those recruitment professionals who can actively demonstrate that their credentials ensure diversity is delivered through better recruitment practices.

To re-emphasise the case, Jobcentre Plus published its own research in which more than 50 per cent of employees and customers believed employers should be more proactive in improving workforce diversity, which, they said, in turn could actually help boost sales and attract more recruits. Already several global brands such as Microsoft have stopped using labour suppliers because of their attitude towards diversity.

Future factors will bring this into even more sharp focus. Tens of thousands of jobs across a wide range of sectors including construction and hospitality will be created before, during and after the 2012 London Olympics.

With around 80 per cent of REC members supplying temporary staff, there is a constant eye kept on Brussels should any of the successive presidents of the EU choose to introduce onto their agendas the Agency Workers Directive.

Though not opposed to overall aims of the directive, the REC has always championed the role of the UK’s 1.2 million temporary workforce and the vital contribution it makes to keeping both private- and public-sector businesses on the move.

Their contribution we celebrate every year through our flagship event National Temporary Workers Week, the highlight of which is ‘One in a Million’, the award presented to the UK’s top temporary workers.

This year, the honour went to Michael Ross, the ‘Office Worker of the Year’, who has successfully broken a stereotype by being a male PA, a career choice he consciously made and in which he thrives and carries out to the highest possible standards. In his ‘free’ time, he also undertakes work as a waiter.

Michael was presented with his award at a House of Commons’ reception in June. There, he and the 13 other exceptional sector finalists were given recognition for the outstanding temporary work they deliver and elect to do either as part of their busy lifestyles or to broaden their skills should they decide to return to permanent work.

Agency work is a key part of the modern labour market and the effective enforcement of existing legislation is still, we believe, the best way of addressing any instances of worker exploitation, so we are committed to working with the government and trade unions to achieve this aim.

Our business is a pivotal component within the UK’s economy, and we believe recruiters will become increasingly indispensable to employers in sourcing the best and most suitable talent to fill the shortages in specific sectors.

It is sometimes easy to forget how far recruitment has come in such a short time. Less than 10 years ago, our annual turnover was just £10.5bn, but now the scale of the industry and its contribution to the economic and social well-being of the UK is becoming increasingly recognised and understood.

Biography of Helen Reynolds, Acting Chief Executive Officer of the Recruitment and Employment Confederation (REC)

Helen Reynolds is the Acting Chief Executive Officer of the Recruitment and Employment Confederation (REC) as well as the Executive Director of the Recruitment Industry Taskforce for Enterprise (RITE). The REC is the trade association representing the recruitment industry

Currently, Helen’s key responsibilities lie with the overall management of the REC, ensuring ultimately that member’s needs and expectations are exceeded through business support and lobbying, as well as raising the standards in the industry through training and professional development.

Helen joined the REC in 2006, having previously worked within the recruitment industry for 10 years as Temporary and Permanent Consultant, Executive Search Consultant, Branch Manager, Area Director, Regional Director and Managing Director. Her exposure to the industry has been from small independent recruiters through to one of the Top 100 in the UK.