our impact - Recruitment & Employment Confederation - UK.COM [PDF]

OUR IMPACT How we made a difference in 2015 2015 Report and Accounts and 2016 Trading Update





ABOUT US Jobs transform lives, which is why we are building the best recruitment industry in the world. As the professional body for recruitment we’re determined to make businesses more successful by helping them secure the people they need. We are absolutely passionate and totally committed in this pursuit for recruiters, employers, and the people they hire. The Recruitment and Employment Confederation (REC) represents the interests of the UK’s £31.5billion private recruitment industry to government, business and media in both the UK and Europe. The REC represents business through its corporate membership and individuals through the Institute of Recruitment Professionals (IRP). All corporate members abide by a code of professional practice and individual members abide by a code of ethics and professional conduct.

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REC Impact Report 

The REC is: Recruitment’s biggest lobbying voice The source of recruitment knowledge Passionate about raising recruitment standards

Dedicated to developing successful careers in recruitment Committed to exceeding members’ expectations through business support

WELCOME

CHAIR’S WELCOME This report highlights some of the big developments from 2015 including the launch of a new narrative for the industry - Jobs transform lives. It also provides information on a fantastic new campaign for supporting business growth (Scale Up), as well as the drive to increase the membership of the Institute of Recruitment Professionals (IRP). I was honoured to have been chosen to take on the role of REC chair last year. Having had over 18 years of experience in the construction recruitment industry, I founded Bespoke Recruitment (Construction) in 2001 and what made my business thrive was my own unwavering demand that we are fully compliant and compete on best practice. The REC have helped my business develop and that’s why I now want to help others. This is the best time since the 1980s to be running a recruitment business. The UK’s job rich economic recovery has enabled the UK recruitment industry to expand rapidly. Sales grew by £1.8bn to £31.5bn last year (that’s a growth of 9.7%) and the industry is now £4.5bn bigger than prior to the recession. The REC’s growth forecast for the industry this year (2015/16) and for the next two years is for a further increase in sales of 22.1%. We anticipate the industry turnover being £39bn by April 2018 which is why we are continuing our Scale Up campaign to help members take advantage of the opportunities for success on offer in the growing market. I’m particularly proud of the way the REC demonstrates that it is a positive representative for the recruitment industry by its extensive



media coverage. To be a strong industry and a force for transforming people’s lives, we need to have a voice that is respected and listened to. The REC does that. The REC is focusing on making the industry a career of choice. This is something that I am pleased to see the REC working hard on with its increasing levels of people joining IRP and taking exams year-on-year. In 2016 you are seeing the REC continuing to fight recruitment’s corner, be that on taxation policy, the wage cap on NHS agency staff, or the introduction of new conduct regulations. We speak on behalf of the whole industry, not just an isolated part of our profession. Recruiters make a difference to people’s lives: we help businesses get the skills and talent they need and we make our jobs market work. If we have compliant professional businesses in REC membership it strengthens our voice and enables us to talk with more authority and credibility. So please read on to find out about everything the REC achieved during 2015 on behalf of its members and the industry as a whole.

Simon Noakes Chair Recruitment & Employment Confederation

REC Impact Report

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CONTENTS LEADING THE INDUSTRY P8-9 OUR IMPACT IN 2015 P6-7

REC IN THE MEDIA P11

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REC Impact Report 

GOOD RECRUITMENT CAMPAIGN P10

MEMBER ENGAGEMENT P12-14

CONTENTS

INCREASING PROFESSIONALISM

JOBS TRANSFORM LIVES P15

P16-17

INSTITUTE OF RECRUITMENT PROFESSIONALS P18-19

REPORT AND ACCOUNTS P20-27 FORWARD LOOKING 2016 P28-31



REC Impact Report

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OUR IMPACT IN 2015

£31.5bn*

Our governance structure The REC develops its four year business plan with the sole aim to make membership the best it can be. Everything within the REC’s work programme is geared towards improving its membership services, enhancing the professionalism of the UK recruitment industry, making sure employers are aware of the benefits of working with REC members and delivering a surplus back in to the REC’s reserves, that can be reinvested back in to the UK recruitment industry. This impact report outlines all the areas the REC set out to deliver during 2015.

Turnover of the recruitment industry

82%

The REC represents 82% of the recruitment industry by turnover

429

training courses were delivered

95

in-company courses at members’ locations were provided

2,550

delegates attended an REC event

* Recruitment Industry Trends Survey 2014/15 and Medium-Term Forecast



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REC Impact Report 

OUR IMPACT IN 2015

32

government consultations responded to

10

minister meetings and five shadow minister meetings held

82%

success rate achieved for key policy campaigns

19

Policy meetings delivered throughout the UK

42,000

incoming queries to our customer contact centre

15,300

incoming queries to our legal helpine

57,300 answers given

1,583

2 million

674

6,000

1,841

30,000

online articles across multiple media sources were secured

downloads across IRP website (82 downloads every day of the year)

individuals were helped to get professional qualifications

appearances in national newspapers or recruitment/hr titles



visitors to the REC and IRP website

listeners given access to the Scale Up Podcast

REC Impact Report

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LEADING THE INDUSTRY – YOUR VOICE TO GOVERNMENT Following the 2015 general election, the REC agreed six policy priorities. These were decided based on the new government’s areas of focus and the issues that are of key concern to members. We continued to track, analyse and influence other policy, legal and compliance developments as and where relevant, but these six policy themes formed the basis for REC advocacy and lobbying work for 2015.

In addition, we have been quoted by:

• House of Commons Immigration Bill Committee

• Home Affairs Select Committee

• House of Commons Education Select Committee roundtable

• National Audit Office

• Low Pay Commission on the National Minimum and National Living Wages

Representing the industry at all levels of government is important. The REC is passionate about ensuring the recruitment industry is recognised for its valued contribution to UK plc.

• National Audit Office review into government’s use of consultants and temporary staff

• Migration Advisory Committee • Stephen Doughty MP, Shadow Business Minister • Kevin Brennan MP, Shadow Employment Minister • Baroness Altmann, Minister for Pensions • Priti Patel MP, Minister for Employment

By the numbers

62

letters to government

That’s why in 2015 we have given evidence to:

39

35

consultation responses

9

policy and sector meetings and webinars given to members

new sector guides launched

67

constituency briefings

The fact that the voice of its members is not only being heard, but acted upon, is testament to the way the REC represents the industry and its membership. The REC is ever present lobbying, challenging and is proving influential in their pursuit of a ‘fair deal’ for the recruitment industry – Liaison with the HMRC, BIS, the GLAA in particular are all evidence of this throughout the past 12 months PETER TAYLOR, ENCORE PERSONNEL

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REC Impact Report 

OUR IMPACT IN 2015 Policy in action REC as expert voice on immigration The REC has proactively represented members’ interests on immigration to both the Home Affairs Select Committee, who quoted a number of our policy solutions in their report, and the Migration Advisory Committee, who used our Report on Jobs data in their report to the Home Office.

REC raising skill shortage concerns to Minister for Freight The REC met with the Minister for Freight, Andrew Jones MP, in November 2015 to raise our concerns regarding driver shortages. We discussed the need to support licence acquisition, HGV trailblazers and service station conditions.

The REC continues to evolve to ensure the UK’s recruitment industry maintains its status as being the best in Europe DANIEL CLIFTON, PARAMOUNT RECRUITMENT LTD

DE C GUI sectors THE RE Specialist

Lobbying against agencies being scapegoated for the failures of the NHS The REC responded quickly and decisively to defend healthcare agencies against the accusations made by the Secretary of State and have been engaging with Monitor / TDA throughout the NHS caps and controls being imposed on agency spend. This work led Jim Mackey, CEO of NHS Improvement, to tell the REC: “I appreciate REC’s important role in supporting agencies to adapt to the agency price caps and to the new requirements on trusts to operate solely through approved frameworks.”

Defended education agencies against false and unfair allegations The REC ran a campaign promoting positive work of agencies in the Education sector, prepared members for protests and received national coverage via the BBC. Delivered member events with a huge range of guest speakers In 2015 speakers included: DfE, HMRC, UKTI, BIS, DWP, RCN, Crown Commercial Services, Health Trust Europe, London Procurement Partnership, Hertfordshire County Council, Skills for Care, UK Home Care Association, Unison, National Midwifery Council, Education Support Partnership, ATL, Family and Childcare Trust, John Howson, National Apprenticeships Service, City & Guilds, Women’s Engineering Society, Tech City, FCSA, Open Europe, UKCES, British Chambers of Commerce, Fragomen, Markit.

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Almo talent to stand to projects, ased by increased by 13.5% has mea concernin and working non-EEA UK or EEA cand tage Occupatio stry continue ers. ts’ incre .6 As 60% • Most Shor and will licensing restauran online retail sales to a year later ure on work s.7 The indu filled using the national in the UK. thought UK, this on ased press profession a flexible indu er stry 2015 and Quarter of 2014 by road in the rise the roles g related tain 86, Octob 6 due to incre d nd to a large ce Report engineerin rnment to main reflect business y, 2015. the seco s are transporte , Eviden are has led Januar Sector to ding r gove ics lled in8 Star. 13th ng Skills the Logist of all good consumer spen 7 The Load S), Understandi needs the system in orde students enro nges in in say MPs. rs. ion (UKCE mance Challe cs sector, increase for HGV drive ortion of overseas students; and Skills immigrat and Perfor for UK logisti eers, high prop Employment ng Skills in demand time bomb’ ission for 2015, cW. needs. A g courses are also as trained engin e due Understandi fy (UKCES), shortage is ‘a ticking p. 22. 7 UK Comm Deb, 8 June 8 and Skills engineerin students quali d, to return hom UK. In driver June, 2015 er 2014. HC yment HGV ine. Emplo Gavin. in the t Magaz 86, Octob ission for 5 Van Marie, once thesedecide, or be force , Freigh 4 Ibid ce Report 1 TUK Comm ended; to find work 3 Ibid bad news!” , Eviden 2 Ibid good and ics Sector they may ulty of staying Work) Visa route are 2014 “GDP – the Logist y Sharon. nges in Ryan, Dr to the difficTier 1 (Post Stud outside the EEA mance Challe length of and Perfor 2012, the nal students from the UK for the years in internatio allowed to stay iously given two must ents now only se (they were prev uating). Stud grad their cour d work after lion new to find skille

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REC Impact Report

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GOOD RECRUITMENT CAMPAIGN The REC listened to member calls for a campaign to raise awareness amongst employers and business bodies about the value of the industry, as well as the work the REC does to raise standards. The result: the launch of the Good Recruitment Campaign in 2014. The Good Recruitment Campaign – created by businesses for businesses, plays a vital part of how we engage with employers and business bodies to promote the critical importance that good recruitment practice plays in organisational success. During 2015, the REC has continued to work tirelessly to ensure even more employers have signed the Good Recruitment Charter, demonstrating their commitment to best practice across the supply chain, reinvigorating their recruitment strategies so they can provide a better candidate experience and work more effectively with their recruitment partners. We will continue to help members demonstrate compliance to the REC’s Code of Professional Practice, by engaging employers in a conversation about what good recruitment looks like, backed by key business organisations.

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By the numbers

Over 100

signatories have committed to the Good Recruitment Charter

4

advisory panel meetings have been delivered to drive the campaign, featuring discussions on diversity, inclusion, employer brand and the candidate experience

The launch of ‘The candidate strikes back’ was met with wide acclaim by both members and Good Recruitment Charter employer signatories

Over 200

HR and recruitment agency professionals attend the REC’s flagship Talent, Recruitment & Employment Conference (TREC)

We have joined the Good Recruitment Campaign as we feel strongly that it echoes the principles and approach we take towards recruitment at all levels of our business. We look forward to working with REC on this and encourage more businesses to support the campaign

We are honoured to be joining the Good Recruitment Campaign. EY is dedicated to building a better working world, so we are constantly looking for ways to enhance the candidate experience. We believe that being a member of this initiative will align with our future business plans for EY.

JEZ LANGHORN, SENIOR VP OF PEOPLE, MCDONALD’S UK

DAN RICHARDS, RECRUITING LEADER, UK & IRELAND, EY

REC Impact Report 

OUR IMPACT IN 2015

REC IN THE MEDIA We continue to represent the industry by securing coverage across print, radio and television broadcast media.

We have received coverage via:

We are championing the way in which REC members are transforming people’s lives, through our influence to policymakers, politicians, the wider public and everyone who is a stakeholder in the jobs market. REC members help businesses find the people they need and we campaign for the UK recruitment industry through our media coverage.

2,341

references across all media

53

number of times that REC spokespeople were interviewed on broadcast media



By the numbers

56

mentions per month on average across target media

674

mentions across target media (national newspapers and trade publications)

REC Impact Report

11





MEMBER ENGAGEMENT Recruiters have the power to create opportunities for success for people, business and the economy and as the largest recruitment representative body, we see it as our duty to continuously ‘up our game’ and deliver the tools recruiters need to be successful. For 2015 the REC has continuously developed and improved its services and practical tools to help members continue to make businesses more successful by helping them secure the talent they need.

I had been a member of the REC several years back, but didn’t really take advantage of all the services that were on offer. As a new recruitment business owner, I decided to re-join and found the process to be easy and extremely useful, giving me access to their Document Library. At first, taking the compliance test was a bit off putting, but the team were very helpful, and if you are a seasoned recruiter, it should be very easy…. which it was! I have also joined the Hospitality round table which was a great opportunity to meet other recruiters in the same industry, to share our ideas and frustrations in an open and friendly environment.” ANDREA SHAW, SHAW TALENT

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REC Impact Report 

OUR IMPACT IN 2015

By the numbers new ved Our impro k and utloo back JobsOwill be t in June. s repor you here’ with time, the meanhot of In thesnaps market. a

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hiring felt that believing in making just 18% employers (77%) of (22%), with levels of confidence employers quarters the same (12%) the 2016, three or remaining (79%) expect over one in ten think that In March (55%) ten employers with just t decisions. of employers eight in either improving or increase, half (55%) and investmen might . As a result, remain static more than in hiring to t decisions worsening ly, whilst confidence t decisions investmen prospects. investmen to worsen. Interestingexpect improved how hiring and economic it about future only 44% don’t know expecting is improving, employers (9%) amongst employers y economy in ten are getting: that one some uncertaint 6 as a whole The fact there is 12 country suggests s in the change 22 condition think economic Do you ion 50 your organisat to get: 5 s, do you/does 9 3 decisions t condition and investmen 35 of the economic e in hiring rise in In view further confidenc is for a expect Don’t know of nowcast

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talent for your recruitment

E-Resourcing has been delighted with the REC JobsOutlook publication. As an IT recruitment specialist we are always keen to see trends arising, before they impact our clients. We share this data with all of our staff on a quarterly basis, holding training sessions on key messages arising

business

measure Our current in the Force Survey the Labour ent of 23 thousand This would unemploym to March 2016. up slightly ent rate three months unemploym present). at bring the (from 5.1% to 5.2%

KEVIN THORN FIRP, E-RESOURCING

38

6 A lot better

A little

total quarterly 2016, a in ing this Whilst the and a rise 2015 - February Underpinn ) of 23,000 rose by quarter. December nt the previous t and temporary employme against nt (permanen Year-on-year, by 120,000. 25,000. in employme yment of yment increased self-emplo oyed whilst self-emplo 262,000 and self-empl 31,409 ent, employed 31,389 Total employm 31,122

30,982

26,564

26,587

26,427

26,307

26,302

MATTHEW COLLINS, SIMPLY SUPPLY LTD

& Recruitment Employment on Confederati

& Recruitment Employment on Confederati

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–

4,618 4,497 1,641 4,468 1,660 – 1,672 Sept 2015 2015 – Nov 2015 – June 2015 August March 2015 d Self-employe May 2015 Employed

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4,643 1,645

month from last EU slightly of the looming Living e has dropped because confidenc National Employer to decline further ns such as the and is likely , policy interventio factors. to referendum global economic nt continuing of Wage, and with employme in the number is positive, see a rise states that the picture encouraging to lly Overall y ONS data particularl lly active: were economica rise. It is economica 16 to 64 that who are aged from This suggests people fewer people a year earlier. future. 121,000 to in the near compared may improve inactive ties availability opportuni are candidate there market g the jobs order and recruiters, For employers who are re-enterin we do so in people vital that to help – and it’s skills shortages. into vacancies prevailing to alleviate

– Dec 2015 Feb 2016 work

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to be representative weighted by its rules. Data were 28th 2016. Council and abides and March Polling March 11th of the British between member by telephone ComRes is a in hiring split. ONS involved / private Source: and owners sector and public employees 200 UK broad industry interviewed by region, ComRes in employment of UK adults

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key research publications launched during 2015, including Recruitment Industry Trends, Planning for growth, Seven secrets of a successful recruitment entrepreneur and The candidate strikes back Recognised as being within the

Over

European service providers for consistently high levels of member satisfaction

research reports downloaded by REC members

Top 33% 108

member events delivered across the country



4,523 1,686

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f Executive REC Chie n says: Kevin Gree

– loyment ry Total Emp t and Tempora to in the year by 360,000 was witnessed Permanen increased a fall 20,000 rise was UK workforce rise of just

31,049

“I value the REC specifically because they have many years’ experience in our industry. They also work closely with the DfE and can always give us the most up to date legislative changes to keep us ahead of the game”

A little

No change

better

21,597 14 destinations for REC events

REC Impact Report

13





MEMBER ENGAGEMENT CONT. In response to member feedback for more practical services and tools to help them develop and grow their business, talent and add value to the services they provide. The REC launched Scale Up in 2015, this flagship campaign included events, essential business guides, Business Toolkit which included all the critical information REC members need to run a successful and compliant business. Scale Up 2015 was a great success for the REC and had record levels of engagement from members and non-members.

By the numbers

Scale Up Live

Scale Up Digital Workshops

Business Growth Seminars

5,000

ets ven secr tment

More than people took advantage of the excellent Seven secrets of a successful recruitment entrepreneur report, which outlined the key traits of the industry’s most enterprising leaders

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days, ent busines care er, with g a recruitm sale in the early the rest will take kind of custom s and Growin and g the right right market as lves in every er - “sell themse s manag that targetin and within the exists as much nce shows nt terms than a busines growth . But experiethe right payme Good and bad mantra results. company margins, the right then your need sustainable growing delivers are not not enough - you efforts. sectors bad risk. – if you your is to grow its own good and ng in the and respect ny needs But growth on you well in operati g. Every compa who treat e Recruitment to be shrinkin and risk. from clients r of Bespok is likely growth growth , Founde he views sustainableSimon Noakes about how y, speaks We asked ction industr constru ent:

uitm oke Recr es, Besp th So by Simon Noakd risk into grow ne else. partner s for someo , working with my busines How I turne passion years ago and the ago,

wave ent 18 s 14 years had the drive d by this r very engulfe togethe out in recruitm own busines We both act I started I started my intimately. ly, you can feel in get your up and a business mentor the timeknew the sectorit.Then, sudden in the got for help Steve, I got on with makes you sharpen tial roups and ors of links below so we justsibility which in REC sectorg this Essen d ance indicat new Click the mentioned in of respon ing. perform base (gaining ion, I got involve quickly.. It changed everyth ng the key client staff (retent core areas my tly reviewi margins; our quickly Guide: ones); our how awares is telling I am constan r and gross current Business and s within people); testingmy busines a Mentor As an owner - our turnove ing new I look at what with passion g our busines cy & Get ourbusiness in them, ny. the front and attract and growin Up an Agen rch clients development are of the compa lead from values and believe you al al • Startperson and candidates it is essenti tand your nce & Resea liance sure clients day. I believe all staff unders ngly. • Guida sure accordi & Comp tely s and making me every making those values comple (s) s operate ing • Legislationand finance market enthusiasm, busines t and service range promot the chosen as on how produc as well on your • Cash flowa USP blueprints knows your a close eye a clear Having in the busines sure you keepngly. • Building Quality levy in to anybody everyone al, as is making ding accordi the CITB of such as ion. My advice e in • Badge is essentigroup) and respon t sources legislat lie. For instanc managed. ltant skills (sector of differen bad debt r is well • Consu conside from lots n codes and where your risks and safety actually health gulatio is to check Risk comes which we ction,re identify as a that any construng in any sectorto make sure is paramount, more we can es ourselv operati ction we have due diligence (USP). The can position we constru of regulation,Sales Proposition lly the better Outsideof our Unique be managed, risk, especia to s is aboutof contingent as part are risks of our busines got lots e) to make sure that there s. list’. Mosts, where you’ve busines for instanc that right. the ‘risk is top of a temp busines t (factoring,have to get flow suppor You l Cash running financia rcial risk. . when you’re you need that comme ent business recruitm labour and ingall of to run your you’re manag g you need nt

REC Impact Report 

featuring business leaders and entrepreneurs from the recruitment industry

Busines

Guide

nt & Employme Recruitme tion 2015 Confedera 2100 T: 020 7009 k.com E: [email protected]

14

6,000 listens to the Scale Up Podcasts,

Scale Up Podcasts delivered

ts for everythin documen Toolkit REC’s Business scaleupguides Use the .uk.com/ Visit www.rec

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Wha what ss. But ment busine is no There d. can it be? any successful recruit ss does. busine and being focuse od of ng and your advised hing you down to planni is the lifeblo who has also It’s Director Marketingjust about everyt and it right. basics and REC getting is it? It’s down the ss expert to offer. magic to w, busine years, to break experts have hidden Anita Holbro over the marketing We asked of businesses recruitment ds leading hundre what tips experts and reveal n to the actually about people that liste vital is it is why well as basics and Well, recruitment m. That’s spectru ies of selling as act of know the about sales, isn’t it? post-re cession subtlet of selling is an is current tands the act mes it feels will see lly in the Recruitment ant unders a phrase, the end and someti especia consult g simply businesses tor influence, s and every ches. ‘Sales’ is be on the receivin 67% of to By 2020 as a revenue genera s on the every busines s approa obviou feels pushy your busines as well at the core marketing the more Sometimes it calls. are setting are doing, the customer ion. all the c: Putting sure you of activity you persuas Infographi to make are making Marketo ent and Source: which type tactics. like you to know and these ful in recruitm simple you have as le for using keep it To be success for growth, rationa ing. Let’s are often known ves and market right footing sales and directing. They go with this: clear objecti as having to talk about cing and ity we’ll g you to enticin lots of ways ng styles: influen But for simplic are sun, There the hot two operatican be sub-defined. F2F ce. It is the talk about and and influen eaker at t things, loud-sp to engage are warm differen It is the will over heat. - is used you e cing result. d Tel y Influen coat off, becaus a targete off because you take your is used to deliver your coat on: gto take es to focus y Directininstructing you target audienc beach DM main direct are two y Clients : ent there success In recruitm affect your , who can E-com ates target groups er groups y Candid r of indirect n makers y Employ decisio are a numbe ls y Local Also, there s (the channe Social happen your activity y Media politicians by which Self the means y Local cost one of this are Service Higher y Teleph r beside all : g Running communicate) y map y Twitteto face meetin to ting activit clients you use y Face In y with alue Marke y Linked The Cost/V define your activite your y Email rking The to flyer) manag ent (ROI). use this y Netwo mail (letter or investm and ates and ely return on a people and candid activity effectiv y Direct s a likely l ROI. In but it generally channe each has y Dinner marketing expensive self-service to it and the normal you l has a cost quick guide to -face is the most to the results Each channethe right is a face-to scale down based on the ment), to a sliding l to use, diagram business (recruit then there’s channe and and ce cost results influen . the best to decide the right works best. ent business delivers these recruitm . You have a mix of to run your options for. Often g you need looking everythin are ts for

How hard

value

1,000

More than delegates attending a range of Scale Up events across the UK

Higher

Masterclasses

nt

nt & Employme Recruitme tion 2015 Confedera 2100 T: 020 7009 k.com E: [email protected]

documen Toolkit REC’s Business scaleupguides Use the .uk.com/ Visit www.rec

4 Essential

business guides

40 Business toolkit documents produced

OUR IMPACT IN 2015

JOBS TRANSFORM LIVES, which is why we are building the best recruitment industry in the world As the professional body for recruitment we’re determined to make business more successful by helping them secure the people they need. We are absolutely passionate and totally committed in this pursuit for recruiters, employers and the people they hire.

B U IL D

IN G

EST THE B ET MARK JOBS W O R LD IN T H E

Jobs transform lives is about the whole industry. The REC and its members are making sure that employers get the best talent and the right people to help their business grow.

PE RT TH E EX

A

When we asked people to rank the importance of various life decisions the average person has to make, choosing what job to do was judged the most important – more important than deciding where to live, when to start a family or even who to have as friends. What recruiters do matters. In 2015 the recruitment industry contribution to the UK economy was £31.5billion*.

During 2015, we have continued to lead the way in defining better recruitment standards and practice, and what is truly needed to build a world-class jobs market.

VI EW

ION LECT COL

OF

The REC continued to champion the positive impact that the UK recruitment industry makes, good recruitment and professional standards and ensure member compliance for a stronger, well respected recruitment industry.

YS ESSA

Together with our members, we have continued to set the standard and show that recruiters can make a real difference, that British business needs talent to win and that the recruitment industry fuels the UK engine/jobs market to help drive business growth and prosperity. This is the message we took to policymakers during 2015.

During 2015 REC members have continued to empower people to make important choices and through their work, recruiters have created opportunities for success for people, businesses and the UK economy. * Recruitment Industry Trends Survey 2014/15 and Medium-Term Forecast



REC Impact Report

15





INCREASING PROFESSIONALISM We believe that the way in which REC members demonstrate their professionalism to their clients and candidates is vitally important. Compliance is an essential part of being an REC member and we insist members and those wishing to become members pass our online compliance test. During 2015 we have continued to drive forward our compliance regime to ensure all members demonstrate an enhanced and robust level of compliance with relevant industry legislation and the REC’s Code of Professional Practice.

Impact in 2015 • Continued with our successful compliance test requirements for all newly joining REC members • Increased the pass mark of the compliance test to 80% to ensure that all members are continuously demonstrating higher levels of compliance • Delivered more legal helpline hours to ensure that members can contact us at times suitable for their business requirements • Continued to ensure members are upholding the highest professional standards through our Professional Standards Committee (PSC) • Delivered a new Legal bitesize publication in between each Legal bulletin, so every month members get a legal update publication that provides it esiz e the latest legislative developments Legal b TRANS

JOBS

Legal

bitesi ze

MBER 6 • DECE • Issue

ES AL BIT C LEG EW RE THE N

• Hosted legal webinars on key topics such as withholding payments to workseekers, temporary transfer fees, pensions: auto enrolment and tax changes in the finance bill • Introduced new model documents, factsheets, guides and questions to the online legal guide.

2015

ING IZE BR

EF A BRI S YO U

SUMM

AL F LEG A RY O

FORM

PIC A N D TO

LIVES

WS AL NE

R’S ANCELLO THE CH AUTUMN AT DID W AND SO WH G REVIE VEMBER SPENDIN T ON 25 NO EN E FOR TH STATEM bill and er’s wage STORE an employ IN R? 0.5% of VE TO e. be set at HA ing T SEC rate will PAYE schem bill exceed • The ed via the ITMEN any wage will be collect bill of below paid against RECRU a wage ers only be ers with levy will UK employ s tax relief

those g employ 2% of • The ediaries, , meanin intermediarie g (less than ment interm £3 million anythin Employment for employ ment sector. not pay the an issue this will the recruit nce against the levy). This is clearly ed in the and for 0 allowa will pay by them a £15,00 was launch to receive engaged tation which reiterated plans ers will do pay to the consul the Chancellor ence • Employ ers who , Referring and subsist employ will be levy. ced that training’ r 2016 Budget relief on travel ment announ summe ticeship pay tax h employ service llor also to appren to restrict what they d throug personal The Chance are committed legislate s engage nies or levy than This lla compa for worker ‘and from the applies. benefit the levy as umbre expenses legislation s, such s ediaries get a greater able to intermediarie rary worker the interm 2016. tempo where 6 April in. who supply being pulled into companies effect from recruiters will take about er) while outset, change employ concerned sector, the From the a large Levy the same particularly (if classed as recruitment ticeship ers. g fund in d at the levy have been Appren employ resultin paying the ally targete impact on all cing a from the specific scope of 66 have an to benefit ted onE introdu While not • ISSU consul p levy will being able ‘3 million ers. not 2015 ment ticeshi fund to appren ’s UARY money the Govern other employ money FEBR way as this year, Governmentlevy ers to raise a pool of JANU ARY/ • Earlier ed in the fund the creating ‘large’ employ T E R Sticeships’, access to n is reflect tation on BULL ETIN levy on allT M AT appren have L concer consul will the N LEGA This as T M Ehigh quality ess of size to the earlier the same day C R U I new, ers regardl response SE RE d on employ ng the release BECAU that all ent, providi ps. which was statement. his statem apprenticeshi d this in Chancellor’s llor revisite about the levy: The Chance details t& further April 2017. following Recruitmen t FOR effect in TLISTED come into Employmenon SHORworld IATION • It will the derati THE ASSOC

Legal b

ulletin

E ’S ON TH WHAT N FOR AR? HORIZO EW YE N E TH

y in

ent industr

recruitm g the best are buildin ION why were D E R AT which is ONFE rm lives, ENT C l Jobs transfo P LOY M CLega T & EM • #RE ITMEN legal RECRU .com/ rec.uk w w w.

of the new at some l to look sector. it is helpfu tment into 2015 the recrui As we enter an impact on have that will

legislation

ITERS S FOR RECRU tions sses Regula RESTRICTION TISING ment Busine ons which NEW ADVER RY 2015 provisi es and Employ sing JANUA FROM 5 ment Agenci amended to include sses from adverti came been ct of Employ es and busine countries. This The Condu Regulations) have (EEA) ment agenci ct ic Area it employ Econom (the Condu ally prohib European stance in other now specific ment’s exclusively 2015. t the Govern by vacancies suppor January unities 5 to on evidence ment opport d to advertise into force to be little ed from employ require at the appears are now exclud Wales) While there als are being businesses d, Scotland and 28 days and es nation at least that UK ment agenci Britain (EnglanEEA country or employ r in Great recruiters, in anothe in English vacancy vacancy’ ses the y. any ‘GB as it adverti r EEA countr same time sing in anothe before adverti

Confe

EXCELLENCE AWARDS 2015

BEST IATION ASSOC AWARD NEWSLETTER

IS IN TH

ISSUE

:

ON THE WHAT’S FOR HORIZON YEAR? THE NEW FAQs commission including pay y and holida UP ROUND LEGAL t plans Governmen travel and to tackle schemes subsistence to es and chang National employers Insurance

NCY’ IS A ‘GB VACA VACANCY AS A THE DEFINED POSITON, WILL FOR A H OF WHIC DUTIES RMED BE PERFO IN T BRITA IN GREA w w w.

1

16

REC Impact Report 

Re c r u

itmen

plo t & Em

yment

Confe

derati

on

rec.uk

.com

OUR IMPACT IN 2015 By the numbers

14%

of existing REC members took the compliance test again in 2015, as part of the second wave of compliance test requirements since we launched in 2012

3

55,000

45% increase in the average

Over legal documents downloaded

taking the compliance test in 2015

1,100

116

A total of formal complaints about REC members received and investigated

260 additional hours

have been added to the legal helpline as a result of increased hours

82% is the average score of members

More than new and existing REC members took the compliance test in 2015

1

formal investigation cases and compliance review inspection referred to the PSC, resulting in one expulsion and sanctions applied, including compliance review of one member

14,501

downloads of both the Legal bulletin and Legal bitesize

call time on the legal helpline

11 legal webinars hosted

60

different model documents, contracts, factsheets and guides have been updated or created REC Impact Report

17





INSTITUTE OF RECRUITMENT PROFESSIONALS (IRP) Making recruitment a career of choice

Impact in 2015:

Recruitment is dynamic, fast-paced and highly competitive, offering career opportunities to the right people who have the desire to help transform lives. The IRP exists to help recruiters from private, public and in-house sectors demonstrate their commitment to best practice, world-class recruitment standards and the best possible services to clients and candidates.

• Grew significantly in the number of individuals forming part of its membership

Jobs transform lives and the IRP is committed to making an industry with such an important role to play in everyone’s life, it should be a career of choice, that thousands aspire to be part of in the UK.

OF TUTE INSTI TMENT I R EC R U IONALS PROFESS

itment

g the recru Advancin

profession

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g the recru

n professio

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Why

IP M RECRUIT APPRENTICESH S 2016 ECTU G PROSP ce t Excellen TRAININ Recruitmen Defining

ortant is this imp

dent, they

confi will le aren’t When peopitment companies website e on their Most recru somewher to best mention are committed are – no how they course theysomething And of doing practice. itted to Somehow, one is comm , there earted way. in a half-h best intentions through your slip s who despite well candidate looked after as will be t and aren’ to. net the d like as you woul

1.

fac Stats and

USE BECA

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very tes are candida friends 73% of r tell thei likely to r experience about thei

tes candida d 65% of ad the wor will spre media al via soci

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that the rath hone, throu d bit, part of of any live in is new way the telep e – goo structive (mindful w it over l age we relatively techniqu ally, be them con kno this is a the truth the digita around tom of electronic speaking, 2. Give do the sandwichJust tell them t) and let them case law A symp done so Historically legislation and computers ated. Don’t work are l media. of your clien using the make at ’s outd or socia emergence they are back from bit – that messaging resulted in an ensure instant yees to tial feed it. need to properly. k which has their emplo confiden can do about t duties yers . Be franof working, e how they monitor employmen from emplo s for candidat to place them If you are employers can what they out their er of calls how Tell the one system to carry in numb of r time. r stuff. in order for you internet and teleph increase thei you the t. Methods an uters w time ting and h ymen seen es was muc emplo work comp ne has 3. Kno checking themselv e everyone is twice as ate howThe REC Legal Helplitheir employees using in the course of theirely simple, such as pushed present otherwis interview, allow ’t under estim button ‘caught’ the relativ using them an Don about it, who have record every range from rather than them on than normal. people need. way can activity ges which sending often personal employees in this lex software packa on it t or-level how them e f seni toring ct of a recen to brie candidat y it is you moni history, to more comp the subje ance even was s. Tell the likel tions was This case internet much guid yee. ectation them and how constant communica lescu v Romania. case emplo onic exp this r by the of electr s in Barbu der what age thei ’t expect yees’ use n Right in touch…” icate with to consi 4. Man commun them. They won say “We’ll be h. If youMonitoring emplo ean Court of Humatherefore important a similar way. ●●● in you will it is help but if you by the Europ ing I touc employees media and able to tor their will be ication from you,yourself to gett our specialist rulingpublicised by the to moni you well wishing ing isn’t let mun yers mitt this will com for emplo rest I CV, but are com means be of inte meantime, have then you the look of your that may . In the down say “I like get anything is unlikely letting them to I do say that area. If you are will move them I have to ?” Then know, butcontacting…? ther or not you you tried Make clear whe . uk.com helpfully c-irp.uk

T 020 7009

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1

• Continued the employer panel engagement representing the recruitment industry to ensure suitability of apprenticeships through the development of ‘trailblazer’ apprenticeship standards

in your What's tin? Legal bulle

p on oyers snoo Can empl s’ emails? employee rules ing time ding: work temps on FAQs inclu ers, suppling protection g work and data for youn ship rates, references. apprentice with s issue ay and ding: holid d up inclu repor ting Legal roun , gender pay . Living Wage commission National and the

INSTI

TUTE

CRU OF RE

ITMEN

• Continued to enhance the emphasis on IRP qualifications and career paths for recruitment professionals

• Launched more IRP professional guides to help recruiters get advice and guidance on key topics such as client and candidate experience, as well as making the most of their IRP membership

TERS

www.rec-irp.

com c-irp.uk.

ional Guides

UITM

oyee’s ur empl ions does ring yo at Monito ic communic an rights electron ch their hum ces ious skill Don bett really obv entation they do not breaain circumstan It sounds ’t get a job so rove their pres they didn helping to imp hip. . cert back. or d in their CV ding a relations brutal feed bit, goo– buil bad er than majority

IRP Profess

RECR

ly a but rare , n used, utation ” is ofte aged rep fied erience didate exp It can lead to dam unsatis The “can e. , REC up with to L ADVISOR in practic e taken ul ways Y, LEGA priority respectf your s and tim CUCKNE CHRIS referral e simple, of you, reduced Here are som nce experie ers. custom a positive represent. ates did you give can clients s and the back. busines feed est why ng hon to know ing es want nts about givi Key poi’t be frightened , but candidater next time.Amend s is all a

• Received high levels of TNS TRI*M survey results, ranking the IRP in the top third of European service providers

• Completed the development of a Level 5 recruitment qualification aimed at senior recruitment professionals, managers or directors

2016

LEGAL

er ur Care EER ides | Yo IRP CAERWAYIRP Professional GuTh ndidate ca e UT LIFICATIONS, nce RO experie ENT QUA S AND Advancin

PRIL MARCH/A

bulletin ISSUE 73

• Won the MemCom award for new product development of a learning resource for Apprenticeships

F T PRO

ESSIO

NALS

• Further developed stakeholder relationships with BIS, NAS, Skills CFA, Welsh assembly and OfQual with regards to apprenticeships and qualifications • Delivered examinations in Abu Dhabi, Dubai, Australia, India, Iraq, Saudi Arabia, Spain and USA.

18

REC Impact Report 

OUR IMPACT IN 2015 By the numbers

Over 8,000 individual members

Over 2,000 students sitting qualifications in 2015, an increase of 85%

Over 80% of students passed a recruitment qualification

30,159 documents downloaded from the IRP website

14%

increase in membership year-on-year

Exams taken in more than 20 UK locations and 8 different countries

Over 11,500 followers to IRP social media channels

REC Impact Report

19





REPORT AND ACCOUNTS: DIRECTORS’ REPORT For the year ended 31 December 2015 Principal activities

Company information

Auditors

The principal activities of REC are:

Directors The following directors have held office since 1 January 2015:

The auditors, Arram Berlyn Gardner LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

• Representation of members’ needs and views in Whitehall, Brussels, and to influential organisations and individuals in UK and overseas. • Provision of members services and benefits to businesses and individuals able to meet strict entry criteria, and to conform to the REC Code of Best Recruitment Practice, including offering legal advice helplines. • Provision of vocational qualifications and training courses for those who work in the industry, or wish to find employment within the industry. • Research and distribution of information demonstrating the social and economic contribution of the recruitment industry to the UK economy.

20

REC Impact Report 

J Brooks, N C Smith (Resigned 17 June 2015), S Noakes, M Evans, K Green S Gallagher, T Evans (Resigned 17 June 2015), S Ankrett, L Jarvis (Resigned 19 February 2016), G Latham (Resigned 17 June 2015), M Cooper, G Irvine, R Handford, P Higgins, J Hilton, N Gupta, S Thewlis, M Bennett, C Moore, J Barrowcliffe, D Martyn, L Hewett, M Brook, K Davison-Renouf (Appointed 17 June 2015), J Withey (Appointed 17 June 2015), S Street (Appointed 17 June 2015), S Conington (Appointed 17 June 2015), A Franks (Appointed 17 June 2015)

Reserves policy The directors have adopted a reserves policy. This recognises that it is prudent to hold appropriate reserves to enable the company to properly plan it’s activities and to protect itself against business risks including the loss, or serious curtailment of, one or more income streams and of serious business interruption. In addition it is felt necessary to maintain a “fighting fund” to employ expert advisors to protect the interests of members as and when the need arises. It is the intention of the Board to build reserves over a five year period representing the equivalent of four months overhead expenditure. To achieve this it will be necessary to achieve surpluses on average of 3% of turnover over these years. The Board reviews the reserves policy and the level of reserves at least once a year in the light of current and anticipated levels of income and the company’s planned activities.

REPORT & ACCOUNTS

Statement of directors’ responsibilities The directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and accounting estimates that are reasonable and prudent; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure

that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors So far as the directors are aware, there is no relevant audit information of which the company’s auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditors are aware of that information. This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006. By order of the board

D Vallance, Secretary [email protected] 0207 009 2100

REC Impact Report

21





INDEPENDENT AUDITORS’ REPORT For the year ended 31 December 2015 To the members of the Recruitment and Employment Confederation We have audited the financial statements of The Recruitment and Employment Confederation for the year ended 31 December 2015 set out on pages 24-27. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective January 2015) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities). This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors As explained more fully in the Directors’ Responsibilities Statement set out on page 21, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable

22

REC Impact Report 

law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the company’s affairs as at 31 December 2015 and of its surplus for the year then ended;

REPORT & ACCOUNTS

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and • have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the directors were not entitled to prepare the financial statements and the directors’ report in accordance with the small companies regime. Paul Berlyn Senior Statutory Auditor for and on behalf of Arram Berlyn Gardner LLP Chartered Accountants Statutory Auditor 30 City Road, London EC1Y 2AB

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or



REC Impact Report

23





INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2015 Notes

24

2015 £

2014 £

Turnover Cost of sales

6,747,139 (1,483,919)

6,290,928 (1,307,682)

Gross surplus Administrative expenses

5,263,220 (5,114,405)

4,983,246 (4,769,519)

Operating surplus Other interest receivable and similar income

2 3

148,815 12,573

213,727 8,027

Surplus on ordinary activities before taxation Tax on surplus on ordinary activities

4

161,388 (2,515)

221,754 (1,605)

Surplus for the year

9

158,873

220,149

REC Impact Report 

REPORT & ACCOUNTS

BALANCE SHEET As at 31 December 2015 Notes

2015 £

Fixed assets Tangible assets

5

£

2014 £

283,384

£ 408,854

Current assets Debtors

6

Cash at bank and in hand Creditors: amounts falling due within one year

7

946,553

617,376

2,058,459

1,362,397

3,005,012

1,979,773

(1,772,228)

(1,031,332)

Net current assets

1,232,784

948,441

Total assets less current liabilities

1,516,168

1,357,295

1,516,168

1,357,295

1,516,168

1,357,295

Capital and reserves Income and expenditure account Members’ funds

9

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and the Financial Reporting Standard for Smaller Entities (effective January 2015). Approved by the Board for issue on 17 March 2016 S Noakes, Director Company Registration No. 03895053



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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2015 1

Accounting policies

1.1 Accounting convention The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015). 1.2 Turnover Turnover represents subscriptions receivable from corporate members, subscriptions received from individual members, fees from professional training and qualifications, insurance commissions, sales of literature, event fees and grant income, net of VAT.

Subscriptions from individual members are recognised on a receipts basis.



Income from grants for specific projects is matched against related expenditure.

1.3 Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings Leasehold – Over the term of the lease Fixtures, fittings & equipment – 20% to 33% straight line

1.4 Pensions The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund.

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1.5 Taxation The company is liable to taxation on its investment income and other income derived from non-members.

2 Operating surplus 2015 2014 £ £ Operating surplus is stated after charging: Depreciation of tangible assets 215,355 254,188 Auditors’ remuneration 14,500 14,500 Directors’ remuneration 270,390 261,804 The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2014 - 1). 3 Investment income Bank interest 4 Taxation Domestic current year tax U.K. corporation tax Total current tax

2015 £ 12,573 12,573

2014 £ 8,027 8,027

2015 £

2014 £

2,515 1,605 2,515 1,605

REPORT & ACCOUNTS 5 Tangible fixed assets Cost At 1 January 2015 Additions Disposals

Land and Plant and buildings machinery etc £ £

Total £

222,400 - -

718,741 941,141 89,885 89,885 (84,246) (84,246)



At 31 December 2015

222,400

724,380

946,780



Depreciation At 1 January 2015 On disposals Charge for the year

110,408 - 44,700

421,879 (84,246) 170,655

532,287 (84,246) 215,355



At 31 December 2015

155,108

508,288

663,396



Net book value At 31 December 2015

67,292

216,092

283,384



At 31 December 2014

111,992

296,862

408,854

6 Debtors Trade debtors Other debtors

2015 2014 £ £ 540,098 277,166 406,455 340,210



946,553 617,376

8 Pension costs Defined contribution

2015 £

2014 £

Contributions payable by the 81,699 64,100 company for the year 9 Statement of movements on income and expenditure account Income and expenditure account £ Balance at 1 January 2015 1,357,295 Surplus for the year 158,873

Balance at 31 December 2015

1,516,168

10 Financial commitments At 31 December 2015 the company was committed to making the following payments under non-cancellable operating leases in the year to 31 December 2016: 2015 2014 £ £ Operating leases which expire: Within one year - 1,677 Between two and five years 303,210 261,983 303,210 263,660 11 Limited Liability Each member of the company undertakes to contribute to the assets of the company in the event of a winding up, such amount as may be required not exceeding £1.

7 Creditors: amounts falling due within one year 2015 2014 £ £ Trade creditors 338,956 198,959 Taxation and social security 306,315 246,066 Other creditors 1,126,957 586,307



1,772,228 1,031,332

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FORWARD LOOKING 2016 To be the largest and most representative recruitment body in the UK

To improve standards, compliance and professionalism across the recruitment industry

To improve the REC and IRP member experience

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REC Impact Report 

To be effective stewards of the REC, grow non membership revenue and make all products make a positive contribution

Our goals To be the voice on jobs and the UK recruitment industry To ensure that the REC is a great place to work

OUR IMPACT IN 2015

Our Purpose To lead a successful and respected recruitment industry that is recognised for its positive contribution to UK plc.

Our focus and key deliverables for 2016 include: Good Recruitment Campaign Phase three will make the campaign more visible both to clients and members. This involves building on the success of the campaign to date and the campaign’s flagship event TREC 2016. We plan to double the number of signatures of the Charter from 100 to 200 by the end of 2016. Jobs transform lives Embed the new narrative “Jobs transform lives” within all REC marketing and communication material. Engage and encourage the industry to use the new messages which will help reposition the profession and the value we create for candidates, clients and the UK economy as a whole. Scale Up Campaign Further develop the Scale Up Campaign which is targeted at helping recruitment business grow. This will again be a multiproduct campaign including research,

social media events, and regional events (Scale up ‘in the round’). More Scale Up podcasts will be made available. The objective is to provide enhanced support and increase engagement with recruitment business owners that want to develop and grow their business and talent. Royal Chartered Status We have already submitted our formal letter of intent and responded to objections. We have received encouraging feedback from the Privy Council but await a formal response once they have consulted Government departments. This is long term objective for the industry and it may take a few years but would reposition the whole industry. Improve member engagement Our activity for 2016 is focused on further improving both member satisfaction and deepening our one to one relationships. This activity will be measured by our customer service and member satisfaction metrics.

Institute of Recruitment Professionals IRP membership achieved its 2015 target of 8,000. We will grow membership to 9,500 by the end of 2016. The activity this year includes growing the use of apprenticeships, launching our new level 5 qualification and promoting a new online CPD tool. Growing non REC membership Revenue In 2015 we deployed sales and marketing approaches which drove revenue growth. In 2016 we will build upon this with a regional account manager and a new resource focused on attracting new members. We may pilot some IRP/ qualifications products overseas. Improve internal effectiveness We will continue to focus on improving our processes, ways of working, capability and organisational design so that we can absorb increased activity, and improve member satisfaction. REC Impact Report

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2016 TRADING UPDATE The general UK economy achieved growth of 2.2% in 2015, a fall from 2.9% in 2014, and is expected to continue through 2016 with latest forecasts being growth of around 2.2%. Whilst some of this may be attributed to the uncertainty around the EU referendum, the downward trend was evident before the date of the referendum was announced. Growth in the first quarter of 2016 was 0.4% (current estimates). It is clear that many companies are delaying investment decisions, possibly until after the EU referendum, and this is impacting on the recruitment industry. The recruitment industry was very strong again in 2015, with further evidence that REC members significantly grew their turnover figures. 2016 is likely to be similar - with growth in both permanent placements and temporary placements. The impact on REC is growth in revenue, both from membership subscriptions and paid-for products and services such as training

and qualifications. However, we have a tight control on costs and we are therefore still able to invest in new products and services for the benefit of our members. The REC continues to be a leading authority on employment matters, and engages with external stakeholders such as the main political parties and various government departments on a frequent basis. The REC is now well into in the second two-year cycle of the compulsory compliance test for corporate membership and after removing 193 companies from membership at the end of 2014 for failing to complete the test, retention rates are high and will exceed 90% in 2016. The REC continues to attract new members at a high rate. IRP membership grew significantly again in 2015 and we have stretching targets for further growth in 2016. Having launched the new Level 5 qualifications in early 2016 we now have a comprehensive suite of qualifications from Level 2 (apprenticeships) through to Level 5 (degree-level), with various delivery methods available, which is helping to improve standards within the recruitment industry even further. Our focus on higher levels of compliance has also seen an increase in the number of members who now hold the REC Audited standard, which demonstrates to employers and candidates that they are dealing with a recruitment agency that adheres to the highest standards and best practice. The REC continues to invest in the Good Recruitment Campaign, which is driving up the industry’s reputation with major employers.

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REPORT & ACCOUNTS

2016 Highlights The Council agreed at the end of 2015 to defer the achievement of our reserves policy by one year, to the end of 2017. The level of investment for 2016 will be £369k, up from £134k in 2015, and we will also deliver a surplus in line with the revised Reserves policy in 2016.

Update on the position Income is currently on track compared to budget, and well ahead of 2015, meaning the final income figure is expected to be ahead of budget. Renewal rates are currently on target, and we anticipate achieving budgeted revenue from this, our major income stream. Both training and qualifications are performing at expectations, and other products and services are also on track. Costs continue to be well controlled, and are currently below budget, so our forecast is that we will again exceed the budgeted surplus in 2016.

SCALE UP CAMPAIGN • Delivered 4 new Scale Up events attracting over 260 recruiters • Launched the Scale Up publication - The Scale Up Workbook attracting over 1,000 downloads in the first few weeks. • Launched 2 more recruitment leader podcasts attracting over 1,000 downloads Helping

ness to...

your busi

in 2016

Campaign

Partner

/scaleup

#scaleup

k.com www.rec.u

GOOD RECRUITMENT CAMPAIGN • More than 150 HR Directors & key resourcing decision makers due to attend TREC 2016 in June 2016 • On track to get 200 signatories to the Good Recruitment Charter by the end of 2016 • Held the Candidate Experience workshop in conjunction with the Candidate Experience Awards with over 20 senior employer decision makers attending

• 8,267 IRP members (as at end April 2016)

COMPLIANCE TEST December 2016 sees the completion of the current test cycle. 41% of members have passed the test to date (end April 2016). By the end of the year more than 95% of members will have taken and passed the test SECTOR SPECIFIC GUIDES • Launched three new Sector specific guides covering the accountancy and financial services, office professionals and HR and legal sectors

IDErs GUsecto THE REC Specialist

Childcare

ldcare

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st s speciali s group provide re sector range of agencie Childca ration’s roles. “The REC advice to a wide ions and ment Confederepresents and of occupat standards in the , group support ent & Employ a raising with a range ic workers re sector The Recruitm st Childca e staff, domest who deal is committed to work to provide rs speciali e to r membe the childcar (REC’s) The group will continu and s who find brings togethe resolve agencie industry pairs. It to discuss and the for the sector.” and au , such as the sector nannies strong voice ment, within the facing the industry environ Barring group working re sector nging issues early years re and Judith Wayne,REC Childca wide-ra the changing the for flexible the Disclosu of Chair of impact ship with growing need relation and the sector’s and Ofsted, e. Service hensive ble childcar compre a afforda tion and qualified stated that Regula ed and UK’s ges in register has long l of the challen and gaps The REC framework for in any overhau subject Sector n. y ry ed to rise regulato re costs continu need of attentio play a part are not currentl apply should Childca childcare has in 26% Nannies of nannies ents that for the are still the UK spend ed The cost n of services e system. tion requirem in ns call childcar e compar parents g registra campaig the provisio found that on childcar to the same ers. Various in the UK, includintion h has ld income 33 developed been childcar ers Researc ds, childcar to other net househo in another same registra e has also of their tion of all nannies to the childcare standar of 12% le childcar A survey registra of affordab to employment. to an average . Holding further improve children and create ring nannies s.1 A lack ents will various rding for countrie as a major barrier 20% were consideof for the safegua requirem d because levels of in the industry identifie found that around advance g their hours that they feel e field e. reducin of parents stated work or a level playing e availabl rs have part of the childcarg 2 Membe childcar giving up y as Despite forms of rce? in achievin e costs. rapidly. childcar taken seriousl play a role families. hing workfoUK is growing have are not could diminis they the Wales working A nannies and that for and ion in still above ce of the role e solution The populat births in England of births is workfor that le childcar the government families have that number h shows the fact 3 Researc an affordab ed, the ent by ensuring decreas are using ledgem vital in need. slightly last decade. ent children single Acknow s play is childcare they the for le 34% of average with depend 4 nanny agencie the affordab families of childcare and 5 it is evident 78% of rs; access to ce is as one form three provide at least e workfor for use at leastof the childcar figures parents ance no accurate in the There are pairs working 6 ), but that mainten nt as ever. and au to 89,000 importa of nannies that 30,000 the numbertes range from r 2014 showed 51,789 in Octobe ed from UK (estima s released s had decreas are the most statistic are ders der number figures childmin 7 Given that childmin e,8 these ce workfor childcar to 50,416. used form of clear that nly ing. It is their commo andably concern 26% of underst

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LEADING THE INDUSTRY • Immigration – Migration Advisory Committee have recommended that nurses stay on the Shortage Occupation List thanks to advice and guidance from the REC and other key stakeholders • Skills – The REC has been invited by government to feed into the early stages of their new youth employment and older worker campaigns

9

consultation responses

REC Impact Report

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ŸŸ Recruitment’s biggest lobbying voice ŸŸ The source of recruitment knowledge ŸŸ Raising recruitment standards ŸŸ Developing successful careers in recruitment ŸŸ Exceeding members’ expectations through business support. Jobs transform lives, which is why we are building the best recruitment industry in the world. As the professional body for recruitment we’re determined to make businesses more successful by helping them secure the people they need. We are absolutely passionate and totally committed in this pursuit for recruiters, employers, and the people they hire. Find out more about the Recruitment & Employment Confederation at www.rec.uk.com

Recruitment & Employment Confederation Dorset House First Floor 27–45 Stamford Street London SE1 9NT Tel: 020 7009 2100 Fax: 020 7935 4112 Email: [email protected] Twitter: @RECpress Web: www.rec.uk.com Registered in England, company registration number 3895053