The last time we were together, at our 2020 conference - just 9 months ago in September, the world looked quite different.

Then, too, we were in a period of relative unlocking, after the horror of the first wave of the pandemic.

But we knew there was an uncertain road ahead. Would the vaccines pass the tests they needed to? Could we get them into enough arms to make a difference? And perhaps more significantly, what would the second wave we all knew was coming look like?

Our discussions that day were focussed on preparing for recovery while weathering the storm: how the market was changing, and what we could do about it. More than anything, we were still in survival mode - the permanent market in the doldrums, the temp market bouncing back a bit  - but still hugely fragile.

Look how far we have come in that time.

While we are seeing a third wave of infections right now - and it is important for us to remain cautious - the success of the vaccine programme means that we can begin to think about the world post-controls.

And that means our economy is roaring back. Just last week, the REC AGM heard that economists are revising their assumptions. They are drawing forward the point at which the economy fully recovers from the shock of 2020 to later this year, having previously been in 2022, or even 2023.

Here at the REC, we can see that in the stories you are telling us about what is happening in your businesses. After months last year helping members in distress, it's just been the best feeling to hear about how you are doing this year, as the market bounces back.

And bounce back it has. Our surveys suggest that hiring companies are more positive than they have been for years about the economy. And placements and billings data from our Report on Jobs backs this up, showing the fastest vacancy growth since 1998, the fastest improving permanent recruitment market since our survey began, and the temp market lodging its ninth straight month of strong growth.

A better place to be, than where we were in last September, certainly.

And this Is a time filled with opportunity for recruiters. A chance to make a huge difference to clients and candidates - and, with that, build robust, respected, highly profitable businesses.

Ensuring everything we do promotes inclusive hiring will open up new opportunities for everyone we work with. Likewise, working locally and in the sectors we serve to address skills gaps will demonstrate how recruiters are the solution to the jobs market conundrums we are seeing. I have been hugely heartened by some of the innovative work we are seeing on this recently -  from Programme One, which is helping improve the ethnic diversity of our sector, to REC members like SERT Group, who are investing in a hire, train, deploy model for the people they are placing.

As an industry, there is so much we can be proud about already. I have always said that part of the REC's role is to make sure that recruiters are respected as professionals outside the industry, and that we feel pride in ourselves because of the work we do within it.

So we can all walk a little bit taller.

And we should do that. Let me give you a couple of examples from the months since our last conference:

• when the NHS came to the REC Healthcare Group and told us "we couldn't have done it without you", acknowledging the role the sector had played in Covid response.
• When Government came to us - the sector, via the REC, to talk about how to ensure automated and AI hiring processes are fair.
• And perhaps most outstandingly, when we published Recruitment for Recovery, our study of the enormous impact the Industry has on our economy through what we do. This wasn’t a survey - it was a peer-reviewed deep-dive into the real impact of the Recruitment and Staffing industry here in the UK.

It revealed an industry with an impact on the economy greater than that of law or accountancy. One valued for its expertise, not just its processes. One that is the best in Europe, according to our company respondents, adding 7.7 billion pounds of productivity to our economy every year.  And one that had more to give - up to a quarter of workers say that their current job is not a good mix for their skills.

These are all signs that the role that recruiters and the REC have played through the pandemic is being noticed. That we have a once in a generation opportunity, at this moment, to switch the debate from price to value. To jump from service provider to trusted adviser.

I know many of you already have the deep client relationships that make this possible. Together, however, we can shift the dial for our whole industry. For our whole economy.

When I met our next speaker, the Secretary of State for business, Kwasi Kwarteng, shortly after his appointment. I used my favourite stat - a million new permanent roles a year, and a million temps into workplaces every day. His response? "Wow."

The pandemic and, perhaps, Brexit has brought a new focus to our economy, and people are seeing the value of the work recruiters do in a whole new way.

Of course there are huge challenges out there: new competition from platforms and other technology; candidate shortage in several sectors; improving diversity; regional growth; skills and supply chain issues. But they are questions for every firm in this country - if we can come up with the solutions, we can position the industry to be advisers of choice on people issues for decades to come.

The prize is big. And I am optimistic. This is not naïve boosterism, though. I am optimistic because I know recruiters. I know our resilience - as we saw last year - and I know our entrepreneurialism, as we are seeing right now all over the country.

• It's been an extremely difficult period with the COVID-19 pandemic and the work you’re doing in recruitment bringing people into the economy is a crucial job as we look to build back better.
• In Government, there is a plan for growth which relies on a very strong and agile workforce.
• The active and dynamic role you play in recruiting people and helping them find a job is critical.
• 2021 has been a really good year and for some, cause for optimism. The vaccine rollout has been extremely successful and the economy is now fully reopen.
• At the end of last year, we managed to negotiate a trade and cooperation agreement with the EU, which has given a measure of certainty to our economy.
• As we enter into the COP26 process, for the summit in November, it’s a good to time to remember the key leadership role that UK is playing in the fight against climate change.
• I want to commend you for the great work being done, and there is a huge role for you and your organisation to play and the Department looks forward to working with you to drive economic opportunity forward to combine with the Government’s levelling up agenda.
• The levelling up white paper comes out in Autumn and working together BEIS with the REC, we will be able to achieve great things. 

During periods of economic turbulence, mergers and acquisitions often become central in the recruitment industry - what advice can you give to recruitment leaders who are thinking about this route?

• Tina rejects the characterisation of mergers as takeovers, and instead advocates respecting the competition and valuing their cultures and unique selling points.  
• "As leaders we are paid to lead and to take responsibility. It’s up to us to allow staff the freedom to take risks and listen to your staff, listen to all of your staff, including from the other business, during a takeover."
• "My biggest piece of advice to other executives, be careful about how to speak about previous management after a takeover, because you don’t know what went into the decisions of your predecessors."
• "After successfully conducted mergers and acquisitions, we are now the largest recruitment business in Northern Ireland and the second largest recruitment business on the Island of Ireland."  

How does the divide between the North and the Republic shape your business? And how are you sensitive towards these divisions?

• "It reminds me of a talk I was invited to give at Oxford called how do you do business in a place like Northern Ireland, and what I wrote was called ‘The business of peace’. When I opened this Northern Ireland office I was conscious of not having one type of person dominate, I wanted people from all backgrounds and ends of the political spectrum. The children of people who were on opposite sides of the divides in Northern Ireland ended up working really well together and working together for a lot of their day. Sometimes we spent more time in the office together, than out of the office with anyone else. Because of this fact, business can play a really big role in healing divides. We should also celebrate the broader role that business plays, when business helps to grow the economy, peace often comes knocking at the door."  

What have you learnt from the pandemic?

• "Most of us executives were wrong, most of us said ‘We don’t like working from home’. What I’ve learned is that when you trust people… Our people worked harder than they ever have, and productivity increased. Demand for NHS and Food staff workers went through the roof. We were wrong about not trusting our staff, now I celebrate that we have hybrid working across our company and I don’t ever see that going away." 

Blazing a path to success 

The pandemic has forced the acceleration of digital transformation and many businesses had to rapidly adapt to the changing circumstances and overcome the challenges that came with conducting business remotely. 

As we adapted and transformed our workforce, it quickly became apparent that businesses needed specialist support with the changing working practices and the skills required when working in the Cloud.   

• The COVID-19 crisis has taught us that we need to be more than just staffing experts – our customers need us to be thought leaders, and by having the in-depth knowledge in our areas we add more value to them.   

• It has reinforced the importance of having strong relationships with banks, our suppliers and providers. Those bonds helped many navigate through immediate issues in a mutually beneficial way, and in a more measured and collected manner.     

“Growing your own people” is important  

• Is “financial growth” the only measurement of success? Have a think about what success could look like beyond the financials, longer term and how you could measure that? 

• Your people are your greatest asset. Sourcing and retaining good, qualified consultants is challenging, but we’re big believers in “growing your own”. Senior leaders should think back to when they just started their careers in recruitment – would you have given yourself a chance back then? 

• Have a robust induction programme and a clear learning and development path. 

• Make sure that the journey is as nimble and flexible as possible – give people the opportunity to prove what they can do. Buddy them up with a more experienced consultant and support them in achieving a qualification to further enhance their skills. 

• Many have put mental health and wellbeing of their staff at the top of their agendas, as well as focused on creating a safe culture, built on trust and your core purpose. 

• Create a space that your employees can respect and where they feel respected. It is obvious to your customers if your staff are not treated well.  

• Focus on how the workplace makes them feel – this is where your vision and values truly come to life, otherwise they are just words on a wall.   

• Companies from a variety of sectors have reported increased performance and productivity of staff since going remote, however they also acknowledge the importance of maintaining the social aspects of the job that office working brings. So, the solution for the future is a hybrid model of working that encompasses a better work life balance.  

The next area of focus for organisations should be increasing the diversity of their Boards. You can easily look up a company’s Board or the senior leadership team, and many would choose not to be part of a company that is not diverse.  

• 70% of recruitment jobs are performed by women, however the Board positions are filled predominantly by white men. 

• With diversity and inclusion (D&I) in teams across all levels (gender, background, age, race, etc.), comes innovation and creativity, a different dynamic that is so important for the growth and success of your business.   

• Too many of us do not record D&I data. Our clients rely on us to help them shape and influence their D&I agendas, and having appropriate records is crucial to evidence our input. If you’re not holding these records now you should strongly consider recording this data – this might also help you achieve better rapport with your clients and candidates.   

• Communication is key, especially in our ever-changing world.  

• Facilitate a culture that allows people to approach senior leaders within your business freely, to openly and honestly share feedback which will undoubtedly help you shape the future of your organisation.   

“Talk the talk and walk the walk” 

• People value the impact your businesses has on the wider communities, environment and economy. 

• People value the impact your businesses has on the wider communities, environment and economy. Some of us may be in the position of influence or have the means to invest in our society; it’s important that we lead by example and deliver on the promises we make to our people. Getting involved in these endeavours shows the type of people we are and that we care about our society.

Reasons business fail to scale 

• The majority of UK rec agencies have fewer than seven employees. One of the main reasons is lack of ambition to get to seven employees or more.  

• Poor cash flow management is another reason – in order to grow, a business needs at least 3 months’ worth of cash to support business growth. 

• Poor behaviours and poor planning of the recruitment owner. Failing to understand the difference between a great recruiter vs running a great recruitment business  

• Lack of planning – too much time IN the business and not working ON the business.  

• Not executing the business plan – or not even having a business plan 

Key pointers for growth 

• Understand what “buyers” look for when working with your recruitment business  

• No reliance on one person within the business 

• Strict compliance processes (depending on the industry / contract) will ensure a well-respected business  

• Keep re visiting your business plan(s) in order to meet your targets or re assess targets  

• Know your numbers – profit, margins, break even points etc  

• Know you market of choice before diversifying. Become an expert in your market before working in another market 

• Ensure 3 months' worth of cash flow before growth 

• Engage your team with the business plan – take them on the journey with you to ensure everybody is on the same page 

What skills do business leaders need today 

• Ability to learn and learn fast – willingness to adapt 

• Balance of drive for results and awareness to keep your staff on the journey 

• Needing to look after your own well-being and avoid burnout  

• Being at the cutting edge of digital and technology – ensure processes are as simple as they can be to maximise output 

• Be prepared to change and adapt to the market and external pressures  

• Make sure your staff understand your strengths and your weaknesses in order to maximise your teams efforts 

• Be humble 

Best lessons you have learned 

• You can’t do it all yourself – it’s important to delegate or share workload 

• In recruitment, you must have a USP – it’s not enough to tell a client that you’re different because you won’t send irrelevant CVs!  

• Make sure you know all the governance behind your business 

• Just because you disagree with something doesn’t mean it isn’t a good idea. Be open and fully understand something you normally wouldn’t.  

• Admit that you do not know everything! 

What trends are you seeing at PageGroup right now? 

• Recovery in recruitment is at it’s fastest rate since the 2008 recession

• Since Q2 this year, Page group have invested in new IT platforms globally, and have recruited 700 new people globally 

• PageGroup has opened new markets within Asia, USA, Latin America and Germany  

• Productivity per person is at its highest it has ever been within the group 

• Use of video meetings has allowed the reduction in time to hire and quicker decisions to be made – which is also having a positive impact on the speed of which the economy is recovering. 

Will technology kill us or enhance us? 

• Enhance – heavy investment has allowed Page to have leading technologies in order to streamline processes and maximise output  

• We've continued to roll out innovations over the last 12 months 

• Using data from LinkedIn, Job Boards, and candidate boards around the world, we are creating information to make better decisions and help clients to make better decisions when recruiting new staff.  

How do you measure productivity within a complex services company? 

• We measure it on Gross Profit (revenue) divided by the number of fee earners (or staff). Other metrics we look at include: 

  • Number of interviews per month 

  • Number of placements 

  • Number of temps per month 

  • Main measure is Gross Profit / fee earner 

Have you changed how you use your data within Page? 

• We can now record behaviours of candidates – how many interviews they’ve been on, how well they performed in those interviews

• We can offer clients insight into job titles, geographical location, jobs per candidates available within different territories. 

Do you think that candidate attraction is changing post pandemic? 

• Important to understand the change in candidate behaviours

• Lot’s of people have evaluated the job they are in, who they work for, how they were communicated with etc and whether they feel valued as an employee. They will also be evaluating what is important to them as individuals when they decide if they want to move from their current employer

• Employers will struggle to recruit new employees if they are not open to change and flexibility based on what has happened over the last 18 months 

• Employee retention is going to be key over the next 12 months whilst a new way of working is implemented.  

Disability employment 

Just over two years ago Steve suffered life changing injuries from a skiing accident. He was in a coma and after several operations was able to recover at a hospital in Switzerland and then in the UK. 

Now in a wheelchair, Steve understands the challenges that many within the disabled community face on a daily basis. 

The UK has a shocking high disability employment gap, what can we do as an industry to rectify this? 

• We have moved the needle and analysis of data   

• 55% in Page are women, which still needs to be higher, but a good start 

• At Page we've focused on mental health - it is a high-pressure environment and we have recognised this 

• 14% of university leavers have a disability  

• Look for qualities – courage, resilience and problem solvers  

• 20% of the UK population is disabled 

• 20% of that 20% are employed 

• 80% of abled bodied are employed  

• Companies need to change their attitude to employing from a different pool of candidates 

• Everyone is talking about a candidate shortage yet there seems to be a pool of candidates that are being completely ignored. 

David Slater International Director, KPMG shares his thoughts on the reasons why now is a good time to consider more international exporting and internationalisation: 

• EU transitions, we have now left the EU, and the UK economy is impacted by that. Do not put all your growth hopes on the performance of the UK economy, as that is a limiting strategy. 

• COVID-19, as we move away from the pandemic now is the to think about markets that are doing better and are unlocking, and where there is performance that you can tap into to grow your business.  

• The UK sovereign trade policy – The UK has negotiated a number of free trade agreements and the European Union has been the most important but there are many others in the pipeline including Australian FTA 

• Within 3 years these free trade agreements should cover 80% of the markets that the UK does business with. 

• There are lots of trade protectionism taking place so be mindful of this. The European Union is an example because when it comes to the movement of people, there are lots of new regulations that impact people with UK passports travelling and doing business in the EU, but the UK is also putting its own immigration policies in place. Free market has ceased. 

• Beware of the competition – are there people in your industry coming up with new, agile, innovative, tech-enabled that are going to compete with you and possibly displace you and make it difficult for you going forward? As they develop, think about your direction to win more business. 

• International trade can be a key driver of growth and can help you mitigate the changes in the UK and broader business environment 

David draws upon the fact that the key things to question are: 

• If you have clients in the EU, how will you service them now the UK is a third country and access has changed? 

• How do you compete with competitors that already have a base in the EU? And do you now need a base in the single market to continue to compete there? 

• If you’re an EU customer, do you want a provider that’s based solely in the UK? Or do you prefer an EU provider within the single market? 

“Research shows that organisations that export tend to be more profitable, innovative and resilient”. RT Hon Elizabeth Truss MP, Secretary of State for International Trade and Investment 

“People rush into making business decisions without taking advice or asking the right questions and it costs more time, effort, resource and money to unpick poor decisions than it does to make good decisions in the first place”. David Slater 

Mark Hutton International Tax Director, KPMG focused on high growth and mid-market businesses in the London region. He also discussed some key areas that businesses encounter when they first set up their business in a new country.  

• Be aware of the tax consequences 

• Think about whether you will do business remotely – The government are conscious about overseas businesses extracting value from their country without having presence. Not to mention, the interactions you have with people and business trips you have on the ground will be limited. 

• Once you have staff members, an office and you’re permanently based there, you will need an entity. There are then two main choices – have a branch or another name for that permanent establishment, which will be an extension of your existing UK company where you employ people through and will pay tax in the country. These profits will then come back to your main UK company, there will not be a separate legal identity.  

• Alternatively, have a separate company incorporated into the laws of that country. This new company will have its own governance, legal identity and filings, it will pay tax locally and to be the profits back you will pay a dividend, have intergroup services which brings the profits back to the main company in the UK. 

Lexi Brewster, is International Business Director – Generate who are an FCSA and REC partner providing clients with payroll solutions to over 95 countries. You may not be able to set up in a country straight away and they can facilitate that. 

• Generate enable recruitment companies to focus on making placements, and deal with the risk management and compliance 

• For self-employed models, Generate can provide accountancy, income tax filing, social support 

“it’s important to not only understand he compliance and the law, but understand what model you need to compete”. David Slater 

Six areas you should watch out for when placing candidates internationally

1. Right to work and visas: do you need a visa? What types of visas are available? Processing times and costs. All of these things combined have an impact on whether that territory is viable for working in or placing candidates.   

2. Payroll: Some large companies might have an existing office in the country of assignment, but the vast majority of companies do not.They need to look externally and use and third-party management companies, but due diligence will be required for finding the right one.   

3. Routes to market: there are two types. Employed or self-employed, but within these types there are many options and depending on which one this can impact what employment rights candidates are entitled to in the country of assignment.  

4. Tax and social security (National insurance): What are the laws and obligations, both in home country and country of assignment as well as any double taxation treaties or similar.   

5. Contractual arrangements: agency contracts a management company and the management company finds the contractor. But this can vary depending on the territory.  

6. Cost: Visas, travel, accommodation. But also, how to set up a limited company in the country of assignment. Lots of countries have high capital requirements. Management company costs also need to be considered.  

UK and the EU 

• The effects of Brexit on placing contractors:
  • Freedom of movement has ended. Now, post Brexit, you can visit, holiday and attend conferences, but you have no right to live, work, or study (or play music gigs).
  • EU nationals living in the UK before the Brexit date still have these rights, as do British nationals living in the EU.
  • British nationals can only now be in the EU for 90 days out of any 180 days period. This counts in aggregate within the Schengen area (ten days in France and ten in Germany means 20 days towards this 90 day allowance), but time spent in non-Schengen countries (like Hungary, Cyprus or Ireland) does not count towards this total and instead counts separately (90 days in Ireland, 90 days in Cyprus and 90 days in the Schengen area can happen within the same year).
  • Getting visas and work permits for British workers working in the EU is not straight forward and only in the Netherlands are fast track options available.
  • For bringing EU workers into the UK, a skilled worker visa is the fastest route.
  • Recruitment companies can sponsor a visa, but only to place them within their own business, they cannot sponsor and then place them with a client. On top of this there are many more criteria that did not apply before Brexit. Another layer of red tape which is the biggest constraint on placing candidates between the EU and the UK.

USA and Canada  

Why is the US market so attractive to UK firms?  

1. It's an Enormous market. 150 billion dollars of revenue. In 2020 a third of global staffing revenue was in the US.  

2. Margins are higher than other parts of the world. UK margins are 15-20 percent. USA market is 20-30 percent.  

3. Fees are also higher. They can be anywhere from two to four times higher.   

4. Less saturated market. Roughly similar number of staffing companies operating in the UK and the USA, even though the USA market is five times the size.  

5. The barriers to entry are lower than they ever have been. Remote work has enabled some firms to place candidates in the US while physically being in the UK.  

What are the key differences between these two markets? 

1. Number one mistake from British firms moving to the US make is thinking both markets are the same. They are two cultures separated by a common language.   

2. The legal and compliance landscape is different because of the seperation between the federal, state and local level. The US market is really 50 different markets, with additional regulations at a city level. California is different from the rest of the USA, but San Francisco is different from California.  

3. This applies culturally. Recruiting in New York is very different from recruiting in Texas or North Carolina. 

4. Big differences in employment law more generally. The default notice period is on the spot. You can leave without notice and be fired without notice. A consequence of this is the market moves faster than in the UK. There is also no federal requirement for sick leave or paid holiday leave  

5. Contract market itself. In the UK we talk about self-employed vs employed, the vast majority of placements in America are for employed which means you will be responsible for health insurance and other responsibilities. 

Simon Thorpe describes three important phases: 

• Pre 2020 – pre-pandemic ‘era of low unemployment’ lowest rates for 48 years 
• Pandemic - 2020 people rapidly losing jobs - 4.7 m on furlough 
• ‘Post’ pandemic - 2021 – seeing a massive upturn in demand. Combined with a big shift in views: 

1.  Organisations needs talent to recover and grow 
2. Candidates are re-evaluating work/life balance/career ambitions 
3.  Agencies need to attract retain and train right people 

• There are currently 4 -5 different generations in workforce with differing aspirations and approaches 

• We need to take a Chameleon approach to be able to change accordingly  

• When employees are in the office – (specifically in sales type roles) they were on average 20% more effective than working from home.   

“What other people think about you is none of your business’ – just be authentic.” Simon Thorpe 

Katie Whitley’s advice on how to standout in a crowd: 

There are thousands of recruiters in the same area. You need to market your business but also your own personal brand, as people buy from people: 

• Use LinkedIn to build leads through your personal network – not through cold contact 

• Share value-added content on problems solved not pitching 

• Post content on LinkedIn that is considered relatable, credible and authentic that is much more engaging than cold-calling etc 

• Authenticity and trustworthiness are key in our leaders – new generations of recruiters want something different. Create content around what you want to be known for, how you can provide value around problems you can solve 

• Engage with your network – be personal, don’t be boring! Tag your contacts and clients. And avoid the direct sales approach  

• Steer away from comparing yourself with competitors

• Don’t look at where you were yesterday, look at where you want to be tomorrow. Identify where you can be different. 

“Be yourself, treat it as a conversation” Katie Whitley 

Katie Mellor shares practical advice on what recruiters should be doing and looking out for: 

There are three main areas to attract candidates: 

1. Back to basics (but not back in time). Focus on the basics – don’t assume a candidate knows what they will get from you/ your agency. Tell them about roles that aren’t on the open market . Think about how to improve candidate experience through technology e.g. video interviewing –  show benefits to candidate 

2. Understand where your candidates are – e.g. on social media. Mirror the tone/ language, use Emojis etc. Have confidence to know you don’t need to be on all platforms – I.d. where your candidates  are and be there

3. Analyse technology in business. Expectations have risen – use online timesheets, portals etc.   

• We might see an increase in available candidates as furlough ends. Think about how you can help candidates build upon their confidence and get ready for interviews 

• Look at what else can you offer individuals – e.g. psychometric tests to help them understand themselves- talk about them as an individual as it builds self-confidence. 

“People want complete flexibility BUT need strong leadership to focus on ensuring we have time together in the office – to reinforce importance of collaboration.” - Katie Mellor 

What I have learnt recovering from adversity, Lord Karan Bilimoria 

Recruitment industry has a vital role in our lives and adding around £86b to our economy with us urging an increase in productivity which adds a further £8b to our economy. Lord Karan Bilimoria, Chairman of Cobra Beer and President of CBI speaks of the recent crisis: 

• REC’s expertise is essential to help the economy bounce back from the pandemic, to get our economy going again, to support people going back to work and those who have lost their job. 

• The next few months are crucial for recovery, and we need to turn our attention to the future.  

• The recruitment industry has had one of its toughest years in a generation. However, incredible agility has been shown from the start by helping key workers, recruiting those who have lost their jobs.  

• One of the greatest lessons during this crisis is partnership and collaboration, such as businesses partnering with the government to keep the economy going. 

Talking on the importance of partnership and working together, Lord Karan noted: 

• At the beginning of our journey at Cobra Beer, there were just 2 of us and over the last 12 years, we have become one of the largest brewers in the world and the UK. Throughout that journey, I have always treated everyone as a partner including my lawyers, accountants, suppliers, customers, advertising agencies, PR agencies.  

• Creating a vaccine can take up to 4 years, but we did this in months. What a triumph for science, universities, businesses and the government all working together, showing proof of what is possible if every part of society works towards a common goal. Now we need to bring that same spirit of unity for our recovery of the recruitment industry. 

• As lockdown restrictions lift, there will be a surge in demand for labour, many businesses are already struggling to recruit. The latest report from KPMG and REC shows that the overall candidate availability in the last quarter has declined at its quickest rate since 2017, this is a big challenge for individual businesses and for our long-term recovery.   

• For months businesses have been paying to keep staff on furlough, which a promising sign they want to keep their employees and have a job for them to return to. However, the paradox is that the more successful a job retention scheme is, the smaller the talent pool for businesses will become. 

• The UK’s long-standing skills shortages haven’t gone away. The stakes are currently so high, that businesses and the government need to act fast if we want to get the best recovery off the ground. 

In a bid to tackle staff shortages, Lords Karan’s suggestions are: 

• Open up new routes into business e.g. new apprenticeship schemes, training, kickstart placements, higher technical qualification and start investing in young people 

• Businesses should invest in innovation and technology. 

• Employers should look to recruit from wider talent pools, working with organizations and charities and considering those who may be overlooked due to their gender, ethnicity, or background 

• Business can support CBI’s campaign - ‘Change the race ratio’. To increase ethnic minority inclusion across the business, to champion ethnic minority participation across businesses. 

Lord Karan is the first President of CBI of ethnic minority origin in history. The Change to race ratio project launched October 2020 with phenomenal momentum with over 100 leading employers who signing up so far, including REC which shows real business leadership. The goal is both helping firms to find talent across the globe and making society that much fairer.  

Lord Karan draws upon key steps the UK government to take to ensure the UK is open for business and get our economic recovery back on the right track: 

• Update the shortage occupation list. Business should be able to hire overseas but this should not be our only response to staff shortages - investing in skills in our own country is vital too and government policies don’t always help people gain the skills that are most needed.  

• Align our immigration and skills policy by using the lifetime skills guarantee and the national skills fund, to help people gain skills for the jobs on the shortage occupation list. Do more to support British workers and direct them to qualifications which we know are in short supply. 

• The current apprentice levy is a barrier to training investment rather than incentive even though there is good intention.  

• Support young people by kick-starting a program to create jobs for 16-24 year olds at risk of long-term unemployment 

Thinking of the priorities for recovery, Lord Karan said our focus should be: 

• The immigration system, skills system, apprenticeship levy, kickstart scheme all play a part in getting our economy on the right track and if we do this right then it will lay the groundwork in the UK to compete internationally in the decade to come. 

• Our relationship with the EU and a tech surge with the government investing huge amounts into the economy 

• In February 2020, the employment rate was around 3.6% - the lowest level since the 1970’s. During the financial crisis in 2008/2009, unemployment went up to nearly 10%. However, 1 year on, we actually have more vacancies than before the pandemic, in many ways this is good problem to have. I have every confidence this could be the best decade yet for the UK economy. 

In today’s market and economy, the competition for talent is extreme. Intuitive AI tools that will act as a differentiator in how they reach out and seek exceptional talent and what the candidate journey will be throughout that process, will be key to attracting a diverse and skilled candidate pool. 

John Healy, Chair of Blockchain Taskforce and Vice President of World Employment Confederation, references emerging tools that are essential in today’s recruitment market: 

• Identifying the right talent is essential to becoming that differentiator to your clients and adding value.  

• Pre-COVID, companies were looking for that “silver bullet”, technology that would solve all their problems, however there is now a shift towards maximising the value from the tech you already have. 

• By reviewing the tools at your disposal and how they can work together, you can help improve efficiencies and allow you to focus on quality.   

Reflections from James on the aspects of human-centric design and how to move forward successfully. 

We’ve gone beyond the candidate experience and we’re now in the realm of candidate expectations. Recruiters historically had a poor reputation in giving feedback to their candidates; today, people have lower tolerance to bad experiences and are more inclined to share negative feedback online. There are a few things you could consider when putting a solution in place: 

• Keep all candidates informed throughout the process and provide feedback (including to those who were unsuccessful in the application process). This will ensure transparency and keep them happy with the service provided.  

• Personalise their experience by using tools that can track user activity such as the searches on your site or applications they have made. The next time they visit the site it will deliver information relevant to them, which will enhance their user experience.   

• Make sure that the solution is implemented correctly. One of the most frustrating things for jobseekers is when applying to a job, they submit their CV and on the next page of an ATS they need to re-enter their information anew.  

• People expect a certain level of service, so be one step ahead and optimise their experience. In other industries, such as delivery services, there are apps where you can purchase an item and it’s delivered to you quickly, professionally and you can track the process end to end. Recruiters have an opportunity to use similar concepts to provide a service to their customers.  

• Chatbot AI - This functionality is being adopted a lot more and is becoming part of the recruitment ecosystem. This can help your business funnel and tackle some of the administrative tasks and free up time to build more meaningful relationships. 

• Transformational Change is equally as important, John note that is a direction that everyone is moving in:  

• Governments across the world are looking at introducing digital wallets, an innovative idea to store documents and receive services via an app. 

• Within the recruitment sector, what additional things should we be putting in this wallet, so that people can connect with work more easily, for companies to gain access to workers more easily and overall increase mobility across the board? 

• There may be some hurdles along the way, some would be regulatory, and others may be due to unease amongst the general population about what people do with their data, however there is a lot more awareness nowadays around what is happening with your data from a consumer’s point of view (GDPR). This concept may work better in more “transactional” roles, where it is purely based on skill sets, whereas it could prove to be more challenging to utilise in a situation where you assess the individual more on the character they possess.   

• Another area to consider would be the Rights to Work (RTW) checks (at present, the Government has extended the decision to allow performing RTW checks digitally). RTW checks are extremely laborious, and prone to mistakes due to human error; by allowing those to be done as part of the digital wallet we could speed up the hiring process, as well as help free up time for recruiters and direct that effort to more productive areas.    

• There is a lot of technology that is underutilised by recruitment within social media. Around 96% of recruiters globally use social platforms, however the way we make use of it differs. How we use social media will impact the spread of new technology.   

“We, as an industry, have a real opportunity to come together and advocate on things as a collective voice. You can use the REC, who already have a strong relationship with the UK Government, to challenge different areas and influence the decision making.” 

“Automate what you can and save time for the important things, like building relationships.” 

• Tech gives us a greater chance of getting to know your clients; follow them on social media, what they’re engaging in and following – convert that intel to better serve your customer base.   
• There is a time and place for the language used in the medium when using different platforms – the boundaries are blurring when it comes to tech we’re using when communicating to prospects or clients
• There is an element of urgency and visibility that should be considered when deciding what tech to use to communicate best – it’s about understanding your customer, your sector and the processes you’ve built internally.  
   
• There has been a 72% increase in agencies looking for digital transformation projects  

1. It starts from digitisation of your assets, your database   
2. Followed by automation, and   
3. Process automation to increase efficiency  

• With the evolution of technology that we use in recruitment, are recruiter skills need changing as well?  
  • Tech is not a one-size fits all, some elements need to be kept out and thought through – let recruiters do what they do best and utilise their soft skills with tech supplementing the processes you have. 
  • Through simple automation you can increase your bottom line by 15%, but there is a time and place to use technology and the human element must still be present to create retention  
  • Use tech as an enabler  -  it can help you create more time for those more meaningful conversations with your candidates and clients 

Challenges facing the boardroom

• There are three things that are currently taking place in the boardroom – the acceleration and embrace of digital, automation and technology. 

• We already have distribution centres that use robots, in the retail and the logistic sector. But companies are now adopting the technology with speed. 

• There has been a boom across multiple sectors – in the financial sector, they have tried to process huge amount of loans into small businesses or the travel sector, which is obviously affected by the pandemic and they had to process refunds. 

• When companies increased the level of trust with their workers, safeguarding of livelihoods had risen on the agenda and the focus on wellbeing of employees. 

• Its not about filling the current vacancy but being kept abreast of what is happening in the sector in general. 

Changing workforce

Dr Andy Palmer, former MD of Aston Martin discusses the challenges that the automobile sector face: 

• Changes begun 10 – 15 years ago, when people began to see the advent of zero omissions strategies, the drive to connectivity and the introduction of the Nissan leaf. 

• We are at the epicentre of that change in 2021, as new car releases are almost exclusively EV’s. 

• There is now very little research into the internal combustion engine and if there was it was only on the fringe of the market as is the case with the use of Hydrogen.  

• The market focus is on electrification. If you produce an EV, you use less people compared to an internal combustion engine, so instead of thermodynamic and fluid systems you need people with software and electronics skills. 

• The supply chain has changed dramatically, and the automobile industry was not experienced in dealing with the new supply chain. 

• There is a current shortage in silicon chips and this affects the market in terms of being able to deliver new cars, potentially with waiting lists of six months for a new car. A car of today has 100 million lines of code, which is more than a Boeing 777. 

• Because of the changes in the market, the industry will need to pivot quickly or it will be in trouble. The automotive industry has little experience in dealing with the new supply chain and we must appreciate that most of the automobile industry is based outside of the UK 

• This means the spotlight is constantly on the UK to demonstrate our efficiencies and economies whether that is from an R+D or from a manufacturing point of view. 

• So, we must attract the supply chain to the UK, the most obvious being a battery supplier. There is only (Giga Factory) one battery manufacturer in the UK based in Sunderland. So, if you want to thrive and grow in this market you must pivot and embrace the new supply chains. 

• We therefore must retrain people by demonstrating how attractive the UK is and capture those people form University proficient in the new technologies. 

• Give people different skills turn thermodynamic engineers into electronic engineers to satisfy todays requirements 

“Training is fundamental for the continued success of the UK automotive industry” Dr Andy Palmer ​​​​​

Diversity and inclusion

On the discussion of how to create a more diverse inclusive and equal workforce, Ali Hanan shares her views: 

• Build a set of skills that are properly inclusive and therefore benefits hiring decisions.  

• We are in a candidate shortage market and this is a business-critical issue. There is an area of the labour market that is not yet activated 

• There are benefits of a strong Diversity and Inclusive policy and tapping into new talent pools. 

A strong Diversity and Inclusivity policy had the following benefits: 

• A variety of perspective helps problem solving, productivity, increased innovation, increased team performance and enhances your brand reputation. 

• Boards that are gender and ethnically diverse see their profits go up by 35% (McKinsey Research) 

Before the pandemic, there where talent pools that had been overlooked: 

• Young black workers have been hit disproportionately hard during the pandemic. With Black youth unemployment reaching 40% 

• Disabled talent has been disadvantaged during the pandemic because 7/10 employers did not think they have the right process to recruit disabled talent. 

•  Only 16% of autistic people were employed before the Pandemic  

• 20% of the UK workforce suffers from a disability which means we are overlooking an entire talent pool. 

• Women have been twice as likely as men to be vulnerable, lose their jobs and 25% of women are considering leaving the workforce or slowing down their careers. 

• The overall loss of women in the workforce equates to a 64 billion loss on the horizon. 

• Older workers have suffered 9% loss of wages in wage s and have been dis-proportionally affected 64 % of workers over 50 are still out of work after 6 months 

• Older workers are keen to get back to work and there needs to be a more flexible approach to the work model. 

• COVID has taught us that you can work remotely, hours can be flexible and you can offer part-time work. 

• The challenge in this sector is that you are only as good as your last piece of work and if that is 5 years ago you are outdated or your irrelevant. 

• If you can recruit returners, they offer a wealth of experience and are usually senior with incredible life experiences, and return with drive and passion for the industry. 

• Get recruiters to champion the candidates and get clients to give them what they need - flexible working hours, part-time working and remote working. 

• Talk to clients who may see returners as a risk, but get them to understand the upsides and get them to understand the importance of Diversity and inclusivity. 

“Talent is there you just have to look for it and challenge your stereotypes when recruiting.” Ali Hanan 

Challenges within the recruitment industry

Steve Guest reflected on the challenges the recruitment industry faced, opportunities and what it needs to be done: 

• Your approach to clients should be a consultative service; listen to your clients and candidate, understand your market and ask 'how can I fix these problems?'. Think about how you can add value to the sector. It is about candidate attraction and being the employer of choice. 

• Be the extension of the brands that you work with and ask how you can both fix these problems together.   

• Clients should be flexible; they need to understand that the market has changed and is changing, and as recruiters we need to find solutions for our clients. Give them options, give them alternatives and offer consultancy. 

“Being innovative give us a competitive advantage to be innovative we have to bring in those diverse skills.” Clare Chapman 

Andy Palmer shares his views on the direction we need to move: 

Speaking on the Palmer foundation and giving disadvantaged kids a real work opportunity. Andy stated “The goal is to make them fit for business by the age of 21. It does matter not where you came from whether that is an inner city or Eton, they are all on the same start line.” 

• We are coming out of a recession, and it is a sellers’ market with over 653,000 vacancies in the UK. 

• We must be open to the available talent pool as employers we have to be more open to what we are looking for and that means retraining people.  

• A youth market that was key to our Human Supply chain for the future. 

• Its important to get the youth back on track as they have lost a significant time of their education. 

• Ensure that we have Diverse and Inclusive workforce will result in a thriving industrial sector.