current trends in recruitment and the changing shape of the uk labour market kevin green, chief...

TalkingRecruitment

Talking Recruitment webinar 17 December 2016Kevin Green

The Kings Fund 9th March 2017 Kevin Green, CEO the REC

www.rec.uk.comRecruitment and Employment Confederation

Jobs transform lives, which is why we are building the best recruitment industry in the world.

Today’s Content • What’s going on with the economy, jobs and recruitment

market? • The UK recruitment market

• Policy Update inc Brexit Update

• Scale Up your recruitment business



GDP up 2% in 2016; 2017 hard to predict• GDP grew 0.6% in Q4. Overall GDP growth for 2016 was 2.0%

• GDP forecast to grow between 1.6% in 2017 (reflecting uncertainty over Brexit)

• Record Employment of 31.84 million – the employment rate is now 74.6%

• Unemployment remains low at 4.8% and is down from 5.1% at the end of 2015

• 302,000 more people in work now than a year ago

• 750,000 vacancies a month

• Non-UK nationals working in the UK increased 233,000 to 3.48 million on previous year

• Of the 1.6 million employees from the EEA, only 200,000 would qualify under current entry rules for non-EEA migrants (SMF)



• The number of appointments via Recruitment Consultancies continued to grow after immediate post-referendum fall

• Perm placement index currently at 54.5; Temp placement index currently at 57.7 (>50 = growth)

• Vacancies rose at highest rate since August 2015 – combined Perm and Temp index currently at 62.8

• Demand for staff continues to rise as availability of Perm and Temp staff continues to fall – employers crying out to fill vacancies

• Perm starting salaries continue to grow (fastest rise in 9 months) as do Temp pay rates

Report on Jobs



JobsOutlook February 2017Employer confidence remains stable

30 per cent of respondents felt that economy is improving Remains below the 48 per cent reported in June 2016

Cautious but confident: 76% employers believe UK economic conditions will be more challenging in 2017 but 74% also think their business will perform better in 2017

21% of employers intend to hire more permanent staff in the next quarter and 24% expect to do so in the next year

50% of employers anticipate skills shortages for permanent role



New Industry Data

• Published December 2016

• Once a year snapshot of the UK recruitment industry

• Size, trends and forecasts



Market Size

£35.1bn GVA Up 9% on the year before



Temporary and Permanent Market



Market growth forecast



New Realities for Brexit • Nothing has changed. Trade, immigration and legislation remain the same

• Economy fundamentally strong. Growth of 1.2 to 1.4 forecast

• Consumer spending remains strong. Good indicator of job fluidity continuing

• Negotiating position on EU starting to become clear outside of single market and customs union

• No deal is better than a bad deal – “full back on WTO”

• Immigration central issue – “control the key word”

• Devaluation in the pound is helping exporters significantly

• Recruiters already saying EU residents returning home

• USA economy growing well, Trump will help but isolationist approach may cause geo political issues.



The latest Brexit landscape Priority for REC members is access to staff & skills. We are using our regular data and new research to build a strong voice on immigration & skills. As part of this, we met recently with Home Secretary Amber Rudd.

One core message is that need for overseas staff is not just limited to high end sectors. We also continue to call for clear reassurance to workers already here.

There is a strong and unified business voice – REC working closely with CBI and sectoral organisations.

Big drive from government on helping more UK nationals access wok – So we also need strong voice on inclusion agenda.

We will continue to use our monthly data to position our voice at forefront of what a post-EU jobs market and economy should look like.



Reminder - Our policy priorities in 2017

Taxation We want to see a level playing field for business and those who work as contractors and on a self-employed basis

Regulation Recruitment & employment regulations must be fit for purpose and help compliant businesses to grow

Procurement Public procurement should promote good recruitment practices and ensure a sustainable supply

Social mobility Recruiters are key enablers of the labour market and therefore social mobility

Immigration UK businesses must be allowed to source the people and talent they need



Apprenticeship LevyThe levy will be paid to HMRC through the PAYE process. HMRC is consulting on draft Income Tax (Pay As You Earn) (Amendment) Regulations 2017

REC Apprenticeship Levy workshops

3 down, 1 to go!Next up: 7 March - London (REC office)

REC Legal Guide is being regularly updated.

https://www.gov.uk/government/publications/draft-legislation-regulations-for-the-calculation-payment-and-recovery-of-the-apprenticehip-levy/draft-legislation-regulations-for-the-calculation-payment-and-recovery-of-apprenticeship-levy



https://www.rec.uk.com/training-and-events/apprenticeships

https://www.rec.uk.com/legal-resources/legal-guide/apprenticeship-levy/_nocache



Matthew Taylor Review

What is it – Government-commissioned review into modern Employment practices

What happens next?Town hall events – We will take forward industry voiceWe will be giving evidence at one of these eventsOnline discussion boardReport due in summer 2017

What can you do?“Up our game in 2017” – talk up the industry and stand together.Provide data: what is your contribution to the labour market.Provide access to agency workers.Contact [email protected] / [email protected] to get involved.

https://www.rec.uk.com/news-and-policy/corporate-blog/recruiters-lets-up-our-game-in-2017

https://www.rec.uk.com/news-and-policy/corporate-blog/recruiters-lets-up-our-game-in-2017

mailto:[email protected]

mailto:[email protected]



Scale Up Digital Workshops

Scale Up MasterclassScale Up podcastsScale Up In the Round

Scale Up Live

Scale Up Business Growth Seminars

Scale Up Research

Scale Up In 2017



Seven Secrets of Recruitment Entrepreneurs1) Motivation: - Make sure principals are aligned - Lifestyle or capital return – can’t do both

2) Be different: - Know where and how you compete - Price Point - Two models, inch wide mile deep on low cost commodity provider

3) Define and deploy strategy: - Vision - Strategy - Plan



Seven Secrets of Recruitment Entrepreneurs4) Invest in the infrastructure to Scale Up your business: - Finance - Technology - Brand/marketing - Capability/people - Non executives

5) Build a strong team: - Teams outperform individuals - People better than you in critical roles

6) Bounce-back-ability: - Resilience - West Wing, what’s next?

7) Bold Plays: - Calculated risks at key moments to get to the next phase of development



The Scale Up WorkbookHow to grow your recruitment business

• Vision • Planning & Strategy • Funding & financial management• Talent attraction & management• Leadership & change management • Marketing, technology & social media• Innovation



World Class recruitment businesses use the Triangle of Success



Customer service profit chain



REC Scale Up in the Rounds

March 22ndEdinburgh March 23rd GlasgowApril 6th Leicester April 20th Portsmouth



Scale Up Live London 2017

• 2 half day seminars in London • Customer Service Excellence – 25th

April • The Future of Jobs – September



Scale Up Masterclass Greg & Chris Savage

• London • Manchester • Birmingham

In association with



Upping our game

• New taster quiz – launched last week – “what type of recruiter are you?”

• Greater use of the online JTL toolkit • Members now using the messaging • New case studies – based on business

narrative • Video to bring to life for members and

stakeholders



Good Recruitment Campaign

• 210 employers signed up • Well over 2 million staff employed • Workshops on diversity/inclusion and metrics• New hub with new research data • Peer to peer review now being piloted • Podcasts on their way • Mentoring process being developed

Why not promote your client?

• Free to clients – sales collateral for you • Added value – no risk • Promotes good practice and REC/IRP membership• Helps talk up the industry

current trends in recruitment and the changing shape of the uk labour market kevin green, chief...

Recruiting & HR