From the Queen’s speech to a fair deal for candidates

Jo Faragher

One of the key developments for recruiters this week – when they weren’t discussing succession planning issues at Manchester United – was the content of the Queen’s Speech.

The speech traditionally introduces the Government’s legislative programme for the coming year, and among the measures announced was the Deregulation Bill, which aims to reduce excessive bureaucracy and regulations placed upon businesses.

This is especially pertinent to recruiters and employers, as Kate Shoesmith, head of policy, pointed out in the REC’s response to the Her Majesty’s announcements. She refers of course to the recent consultation on the Conduct Regulations, which could have significant reverberations for agencies if certain aspects of the regulations are removed.  

She said: “We hope this will be good news for employers and we will work with government to ensure that, as they move forward with deregulation and the red tape challenge, they do not unwittingly cut the important safeguards and assurances that protect our industry.”

APSCo, meanwhile, picked up on the National Insurance Contributions Bill, which will entitle every business to a £2,000 employment allowance, as well as go some way to clamp down on tax avoidance schemes. Many contractors rely on protection from ‘standard’ tax regulations by operating as limited companies and APSCo hopes any new regulations will not bundle them in with unscrupulous individuals involved in tax avoidance scams.

Sam Hurley, head of external relations, said: “Highly paid, highly skilled professionals use structures like personal service companies and umbrella companies for convenience and to take advantage of legitimate tax incentives.”

While hiring companies’ recruitment budgets may have been squeezed for the past few years, there was good news from the Strategic Talent Acquisition Report (STAR), suggesting that the recession has actually pushed recruitment up the agenda with senior executives. 

Whether that’s a case of making sure they get a good return on investment from their recruitment partners, or increasing the scrutiny placed on potential new hires, it’s a positive development that the people who buy in recruitment services feel they can really add a competitive edge to their business by hiring well.

BBC business editor Robert Peston highlighted a worrying trend in his blog this week, where a London charity has managed to persuade seven businesses to offer work placements by way of an auction, with a suggested starting bid of £5,000. Of course, the charity benefits from the money, but parents would effectively be buying their children’s way into work experience at an employer. Too often, internship programmes work in a similar way, with companies being paid to find young talent, yet the candidate receives nothing and ends up filing papers rather than learning about the business.

Our feature this week looks at what’s happening with internships, and considers where recruitment agencies could add value for employers, as well as ensuring a fair deal for candidates. Let us know what you think at editorial@recruitmentagencynow.com