The Changing Face of Recruitment

1. Kevin Green, CEO
The REC
The changing face of recruitment!
12th November 2013

2. Agenda
Current trends in recruitment
The changing face of the UK labour market
Impending talent crisis
3 models of recruitment success
The REC’s Good Recruitment Campaign

6. Per consultant: Permanent
Average value of sales per
consultant is £83,955
Below the pre-recession peak of
£96,954
Average number of placements
are 21

7. Per consultant: temp/contract
Each consultant generated
£682,697
Below pre-recession
average of £721,598
Number of workers per
consultant is 32.2

8. REC Industry Forecast

9. The changing face of the UK labour
market

10. REC Report on Jobs
• Increase in salaries as candidate availability deteriorates
• Continued strong growth of permanent and temporary
•
•
•
•
•
appointments
Overall vacancies rise at sharpest rate in over six years
Availability for temporary and permanent workers lowest for 6
years
Perms have been in growth for over a year now (13 months)
Perm skills shortages are in the higher earning jobs roles –
creative designers, IT/Computing and Engineering
Skills shortages in lower paid work e.g. Chefs & Drivers

11. Report on Jobs Sectors – perm

12. The talent crisis
What’s talent?
Professional competence
Strategic as well as operational
Adaptive to change
Inspires and motivates
Backdrop
An aging workforce
Two speed labour market
Social attitudes to work
Increasing flexibility

13. New shape of the jobs market
Professional market
including Contractors / Interim
Jobs in the middle being
squeezed
Growth in flexible labour and
lower skilled work

14. Models of Recruitment Success

15. Model 1 – The specialist
Inch wide and mile deep
Deep expertise in their niche
Know where the talent is
Candidate centric model
Use content to attract candidates
Highly effective use of social media
Have global reach
Possibility of margin growth
Consultants are true consultants

16. Model 2 – The low cost operator
Often in the contingent labour market
Low margins / high volumes
Compete on compliance – process heavy
Excellent at winning tenders / PSL
Use economy of scale to create value
Growth via acquisition
May often go through intermediaries
Consultants are operators

17. Model 3 – Traditional plus
Branch model with regional focus
Generalists – temps and perm
Full service model
Often do commercial / office/ industrial
To thrive it’s about the plus
+ Focus on SME’s – lots of eggs in lots of baskets
+ Relentless focus at avoiding intermediaries / PSL
+ Defend margins – via relationships
+ Consolidate on to one site
+ Offer clients onsite offering

18. The REC Good Recruitment Campaign

19. The Good Recruitment Campaign – why?
Resourcing effectiveness needs to move up the corporate agenda
Talent becoming scarce – skill and talent shortages rife across the
economy, this will only get worse!
Mistakes in hiring are very costly for employers, employees and the
economy
Youth unemployment still unacceptably high
Good practice being ignored by many
Debate about flexible resourcing becoming prevalent and will be a
election issue
It reinforces only using professional compliant partners
Timing – labour market performed well but is going to struggle when
demand returns

20. Charter Principles
1. Our recruitment procedures are fair, legal and ethical
2. We will exercise recruitment good practice despite mode of employment
3. The candidate experience delivered is of a high standard
4. Flexible working arrangements and adaptive working packages
5. Those managing and delivering the recruitment process having undertaken
any relevant training/qualification
6. External recruitment providers are signed up to industry Codes of Practice
7. Recruitment good practice is ensured throughout the supply chain
8. Recruitment procedures help to address the challenge of youth unemployment
9. Recruitment procedures are regularly reviewed and feedback sought from
candidates
10. That we ensure we keep abreast of trends and recruitment practices

21. The Good Recruitment Campaign,
what is it?
A Charter developed by talent, HR and resourcing experts
An aspirational set of principles for individual employers to
commit to
Raises awareness of the importance of good recruitment to
organisational success
The establishment of a community of HR, talent, in house,
resourcers, recruiters, procurement and business leaders to
champion good recruitment
Researching and sharing insight into new trends, approaches
and good practice in recruitment
Effective sales tool for our members to use with their clients

22. Questions
Sub heading