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What recruiters want from the next government

April 16, 2015  /   No Comments

Nick Martindale

The general election campaign is now well under way, and promises to be one of the closest contests in decades, with debate not just over which party will win the most seats but the various permutations that could be needed to form a coalition government after May 7.

Rob Walker, CEO of BIE Executive, believes the most damaging outcome would be a long period of uncertainty. “Recruitment thrives when there’s business activity, be that turnaround, investment, MBOs or IPOs,” he says.

“It does less well when the markets are being cautious. We’re already seeing some signs of management teams putting big decisions off until after the election and there has to be a concern that some sort of uneasy coalition, with the prospect of another election in six months’ or a year’s time, will see that continue after the general election.”

Yet whichever party or parties are in power, there are a number of issues recruiters would like to see tackled by the incoming administration. Striking the right balance between flexibility for workers and the needs of the employer is a particular concern for Andy McRae, CEO of SAP software services recruiter RED.

“I would hope that any new government would ensure that any legislative changes are employer-friendly and support flexibility in the work force; flexibility for the employer and choice and flexibility for the employee,” he says.

Return to PAYE model

It’s a theme picked up on by Matt McGregor, director of Linsco Recruitment, who is keen to see freedom maintained around models of employment. “Businesses in the construction market rely on a flexible workforce and one that can be flexed as projects and demand require,” he says.

“There is no guarantee that any built project management can sustain employing all people on full-term contracts and they need to be able to hire and off-hire as required. When they work through an agency there is no contractual tie in to stop them working elsewhere unlike a zero-hours contract, so they should not be lumped together with those models.” He’d also like to see a full return to the PAYE model, to ensure a level playing field for all agencies.

The issue of false self-employment and the abolition of tax-free expenses for umbrella and PSC workers is a concern for Kevin Barrow, a partner at international legal practice Osborne Clarke who regularly advises firms in the recruitment sector.

“It seems inevitable that all parties will introduce legislation on this,” he says. “If they do, what we ask is that they enforce it. Otherwise all that will happen is that reputable companies will do their best, albeit reluctantly, to comply, but get undercut by cowboy agencies and lose lots of business.”

Patrick Tame, CEO of ecommerce and digital marketing recruiter Beringer Tame, would like to see it made easier for employers to hire and fire labour as required. “Legislation that protects employees from redundancy or being fired makes employers more cautious and the job market more static,” he says. “It needs to be made easy for employers to take people on by making it easy to get rid of underperforming staff, thereby creating more jobs.”

Co-ordinated approach

Other recruiters are concerned about particular issues in their own sector. Julie Ollerton, managing director of digital recruiter Creative Resource, believes more needs to be done to increase the number of people entering the growing sector. “A more co-ordinated approach backed by central government is essential,” she says. “There is a clear need to increase the supply of quality people coming into the industry, to help alleviate two problems that are destabilising individual businesses and the industry at large.

“The demand for experienced staff across the sector is outstripping supply and this has driven salaries for many roles to an unsustainable level. Secondly, the uncertainty of being able to increase staffing levels quickly without paying disproportionate contractor rates makes it difficult for companies to effectively plan for upcoming projects, and can even result in turning down work.”

Penalising contractors through the tax regime is not the answer either, says Anthony Sherick, managing director at specialist jobsite Technojobs. “Contractors play a critical role in the success of UK businesses and the next government needs to continue to support entrepreneurial spirit and must not curb this enthusiasm with the extension of tax restrictions on contractors,” he says. “If their role is limited due to tax, this could stifle productivity and the stunt the growth of our digital economy.”

‘Hugely valuable export’

In the health sector, there’s also a need to build up a strong pipeline of employees without having to rely on importing this from overseas, suggests Greg Wood, director of Your World Healthcare. “Immigration is much relied upon for us to address our immediate shortfall, but let’s see a government invest in a nursing training programme so we have an over-supply, much like the Philippines, whose nurses help other countries all over the world. What is currently a thorn in our recruitment shortfall could be a hugely valuable export for Britain one day.”

Skills are also on the agenda for Tony Wilmot, founder of staffbay, with encouraging apprenticeships top of the list. “Apprenticeships are vitally important in two ways; firstly they help growing businesses show that they are serious about supporting the workforce of the future and, secondly, from an employee’s point of view, they can offer a way into industries that are sometimes sealed off from younger people,” he says.

“How can any new government help swathes of young people into a sustainable, rewarding apprenticeship? Simple: they should be offering significant tax breaks for those companies which take them on.”

For Lynne Stephen, director of Scottish construction and engineering recruiter Maxwell Bruce, the message for any new government is simply to involve the industry more in decisions which affect it.

“Many industry-wide decisions are made without senior management consultation, which would never happen in more regulated industries such as finance and health,” she contends. “It would be great to see an advisory team made up of recruitment leaders to counsel the government first-hand on best practice and current issues and challenges within the industry.”

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  • Published: 9 years ago on April 16, 2015
  • Last Modified: April 15, 2015 @ 7:53 pm
  • Filed Under: Featured Post

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