Kevin Green, CEOThe REC The changing face of recruitment! 12th November 2013

Agenda

Current trends in recruitment The changing face of the UK labour marketImpending talent crisis3 models of recruitment success

The REC’s Good Recruitment Campaign

Per consultant: Permanent

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

Each consultant generated £682,697Below pre-recession average of £721,598Number of workers per consultant is 32.2

Per consultant: temp/contract

REC Industry Forecast

The changing face of the UK labour market

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

Report on Jobs Sectors – perm

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

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

Models of Recruitment Success

Model 1 – The specialist Inch wide and mile deep

Deep expertise in their nicheKnow where the talent isCandidate centric modelUse content to attract candidatesHighly effective use of social mediaHave global reachPossibility of margin growthConsultants are true consultants

Model 2 – The low cost operator

Often in the contingent labour marketLow margins / high volumesCompete on compliance – process heavyExcellent at winning tenders / PSLUse economy of scale to create valueGrowth via acquisitionMay often go through intermediariesConsultants are operators

Model 3 – Traditional plus

Branch model with regional focusGeneralists – temps and permFull service modelOften 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

The REC Good Recruitment Campaign

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 economyYouth 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

Charter Principles1. 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

The Good Recruitment Campaign,what is it?

A Charter developed by talent, HR and resourcing expertsAn aspirational set of principles for individual employers to commit toRaises awareness of the importance of good recruitment to organisational successThe 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 recruitmentEffective sales tool for our members to use with their clients

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Questions