This document summarizes a presentation on the UK recruitment market and policy updates. It discusses the current state of the UK economy and jobs market, noting record employment levels and low unemployment. It then reviews UK recruitment market data and forecasts continued growth. Finally, it outlines several policy issues like Brexit, the apprenticeship levy, and the Matthew Taylor review of employment practices. The presentation aims to help recruitment businesses scale up and provides strategies and resources to do so.

1. Talking
Recruitment
Talking Recruitment webinar
17 December 2016
Kevin Green
The Kings Fund
9th March 2017
Kevin Green, CEO the REC

2. 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

3. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
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)

4. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
• 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

5. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
JobsOutlook February 2017
Employer 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

6. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
New Industry Data
• Published December 2016
• Once a year snapshot of the
UK recruitment industry
• Size, trends and forecasts

7. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Market Size
£35.1bn GVA
Up 9% on the year before

8. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Temporary and Permanent Market

9. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Market growth forecast

10. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
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.

11. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
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.

12. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
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

13. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Apprenticeship Levy
The 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.

14. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Matthew Taylor Review
What is it – Government-commissioned review into modern
Employment practices
What happens next?
Town hall events – We will take forward industry voice
We will be giving evidence at one of these events
Online discussion board
Report 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 kate.shoesmith@rec.uk.com / philip.campbell@rec.uk.com to get
involved.

15. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Scale Up Digital Workshops
Scale Up Masterclass
Scale Up podcastsScale Up In the Round
Scale Up Live
Scale Up Business Growth Seminars
Scale Up Research
Scale Up In 2017

16. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Seven Secrets of Recruitment Entrepreneurs
1) 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

17. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Seven Secrets of Recruitment Entrepreneurs
4) 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

18. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
The Scale Up Workbook
How to grow your recruitment business
• Vision
• Planning & Strategy
• Funding & financial management
• Talent attraction & management
• Leadership & change management
• Marketing, technology & social media
• Innovation

19. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
World Class recruitment businesses use the
Triangle of Success

20. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Customer service profit chain

21. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
REC Scale Up in the Rounds
March 22nd Edinburgh
March 23rd Glasgow
April 6th Leicester
April 20th Portsmouth

22. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Scale Up Live
London 2017
• 2 half day seminars in London
• Customer Service Excellence – 25th
April
• The Future of Jobs – September

23. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
Scale Up Masterclass
Greg & Chris Savage
• London
• Manchester
• Birmingham
In association with

25. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
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

27. www.rec.uk.comRecruitment and Employment Confederation
Jobs transform lives, which is why we are building the best recruitment industry in the world.
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