News Story

Market starting to polarise, says REC’s JobsOutlook

Monday 16th August 2010

Following the latest unemployment figures issued last week, the REC’s August JobsOutlook confirms an increased polarisation between the public and private sectors in terms of employment prospects.

The survey’s Jobs Barometer - which tracks employer confidence - fell three points in July following five successive months of improvement.

JobsOutlook, the only monthly monitor of employers’ recruiting intentions, shows that while overall business confidence has stabilised over the last year, this has not yet converted into short-term hiring with economic uncertainty leading to the slight dip in employer confidence.

The results also shed new light into an increasingly complex labour market in which employers remain determined to maintain control over workforce costs. As a result, the number of employers reporting redundancies edged up in July and the boost in hiring anticipated for the autumn seems less likely.

Employers’ intent to take on temporary and permanent hires in the next three months remains stable but is relatively subdued compared to expectations at the beginning of the year. The longer term prospects for jobs growth however are more encouraging.

Overall, 31 per cent of employers interviewed expected to increase their use of temporary workers in the next 12 months and 29 per cent predicted their permanent workforce would grow over the same period.

Commenting on the JobsOutlook findings, Roger Tweedy, the REC's Director of Research, said:

“The results show a growing public sector ‘drag’ effect on overall labour market optimism. We know that certain sectors within the private sector are currently buoyant and expect growth to continue throughout 2010 and it is likely that this polarising effect will continue for a while as different parts of the economy emerge from the recession at different rates.”

“At a national level, continued uncertainty about the strength of the economic recovery makes it difficult for many employers to be more positive about their immediate hiring plans. The encouraging news is that medium term optimism remains relatively strong and this is likely to be a good indicator of underlying sentiment.”

He added:

“Recent surveys have suggested that large numbers of workers are now seriously looking to change jobs for the first time in two years in spite of low levels of overall consumer confidence. This activity could well improve trading conditions for many recruiters as the jobless recovery continues.”

JobsOutlook is based on a monthly survey of employers with results based on a sample of 200 on a three month rolling basis. To subscribe to JobsOutlook, contact Tracey McManus, tracey.mcmanus@rec.uk.com.

News Story

REC Northern Ireland responds to comments from Sir Reg Empey

Friday 6th August 2010

The Department for Employment and Learning has today published its second Employment Agency Inspectors’ Annual Report.

Jim Berrisford, Northern Irish Director for the REC, which represents over 100 recruitment agencies in Northern Ireland, made the following statement.

"The REC stands right behind the comments from Sir Reg Empey, when he stated that the recruitment industry in Northern Ireland is well regulated and that the vast majority of recruiters are doing a good job.  We are delighted that the Department for Employment and Learning will use its powers to crack down on rogue agencies, which exploit workers and under-cut well run recruitment businesses."

He continued:

"The REC is working with members in Northern Ireland to ensure that all recruiters operate to the highest standards.  The recruitment sector is playing a vital role in moving people into new work opportunities in the current climate and jobseekers and employers alike should look out for agencies which are part of their professional body, the REC."

The REC holds members to account through its Code of Professional Practice, complaints procedure and a system of random inspections.
 
Last year, the REC launched the Institute of Recruitment Professionals (IRP) to further professionalise the sector.

Matt Tanner, Director of the Institute for Recruitment Professionals in Northern Ireland, said:
 
"A well trained recruiter will offer a first class service to workers and employers alike.  Members of the IRP are professionally trained recruiters, either through experience or qualifications.  We will build the IRP in Northern Ireland to ensure that transitions in the labour market are well managed."

News Story

Minimum wage rise to hit recruitment

Friday 26th March 2010

By Mike Jones

The minimum wage rise - sneaked out in Treasury paperwork after the Budget - represents a real risk to the jobs of thousands of workers and could hit young job seekers hard, the Chartered Institute of Personnel and Development (CIPD) has warned.

From October, the adult minimum wage will increase by 2.2% to £5.93 an hour.

CIPD Performance and Reward Adviser Charles Cotton said: "The LPC (Low Pay Commission) is a generally sensible body but this year's recommended hike in the NMW looks to have thrown caution to the wind, especially with regard to the youth and new apprenticeship rate.

"It is difficult to see how this increase will help create jobs or offer a boost in training places for unemployed young people. In particular, combining a higher minimum wage with the impending hike in employers' national insurance contributions really would represent a hefty 'tax on jobs'. Pricing young people out of work, while also using taxpayers' money to subsidise a youth jobs guarantee, doesn't make sense. We'd have hoped for a more joined up approach.

"In our most recent quarterly Labour Market Outlook survey, a high proportion of our members lacked the certainty on economic prospects for the rest of the year to make decisions about their next pay award. It isn't clear to us what information the LPC have that gives them greater certainty and confidence. As such we fear they're jeopardising the jobs recovery with these increases, which will also create upwards pressure on wages above the minimum wage - further exacerbating the impact on jobs."

And Dr Adam Marshall, Director of Policy and External Affairs at the British Chambers of Commerce (BCC), said: "It is astounding that the Government would increase the minimum wage by 2.2% at a time when private sector wages are virtually flat, and companies across the country are still making tough choices to keep as many people in employment as possible. While the recession may be over, the jobs market will remain tough for some time to come.

"A near-doubling on last year’s increase is even more astounding. Combined with next year’s rise in employer National Insurance Contributions, a minimum wage that’s a 'one-way bet' could stop some businesses taking on new workers."

News Story

Minimum wage rise to hit recruitment

Friday 26th March 2010

By Mike Jones

The minimum wage rise - sneaked out in Treasury paperwork after the Budget - represents a real risk to the jobs of thousands of workers and could hit young job seekers hard, the Chartered Institute of Personnel and Development (CIPD) has warned.

From October, the adult minimum wage will increase by 2.2% to £5.93 an hour.

CIPD Performance and Reward Adviser Charles Cotton said: "The LPC (Low Pay Commission) is a generally sensible body but this year's recommended hike in the NMW looks to have thrown caution to the wind, especially with regard to the youth and new apprenticeship rate.

"It is difficult to see how this increase will help create jobs or offer a boost in training places for unemployed young people. In particular, combining a higher minimum wage with the impending hike in employers' national insurance contributions really would represent a hefty 'tax on jobs'. Pricing young people out of work, while also using taxpayers' money to subsidise a youth jobs guarantee, doesn't make sense. We'd have hoped for a more joined up approach.

"In our most recent quarterly Labour Market Outlook survey, a high proportion of our members lacked the certainty on economic prospects for the rest of the year to make decisions about their next pay award. It isn't clear to us what information the LPC have that gives them greater certainty and confidence. As such we fear they're jeopardising the jobs recovery with these increases, which will also create upwards pressure on wages above the minimum wage - further exacerbating the impact on jobs."

And Dr Adam Marshall, Director of Policy and External Affairs at the British Chambers of Commerce (BCC), said: "It is astounding that the Government would increase the minimum wage by 2.2% at a time when private sector wages are virtually flat, and companies across the country are still making tough choices to keep as many people in employment as possible. While the recession may be over, the jobs market will remain tough for some time to come.

"A near-doubling on last year’s increase is even more astounding. Combined with next year’s rise in employer National Insurance Contributions, a minimum wage that’s a 'one-way bet' could stop some businesses taking on new workers."

Diamond Selects Itris

 - Recruiter Magazine 10th March 2010

Multi-sector recruiter Diamond Recruitment Group has chosen ITRIS from ITEC Systems to streamline its candidate registration processes and share information between its locations more efficiently.

Gary Irvine, managing partner at Diamond, says: “Consolidation of data was the key driver behind our decision to seek one vendor who could provide a scalable solution, working across multiple sites as if they are one.

“We also wanted a system that offered online timesheets and could integrate with our payroll systems as the administrative work involved in managing up to 1,500 temporary workers a week was enormous - and we could only see that number growing. The system needed to offer all the functionality to support that and allow us to grow.”

New Move for Diamond Recruitment in Ballymena

DIamond Recruitment Network in Ballymena has moved  office location to the nearby 9 George Street in Ballymena.  The new premises will allow a lot more room for busy business operations and help to meet the addtional needs for client and candidate facilities in the area.

Good Luck to Eunice and her team for the new office! !

HR departments are 'vital to businesses' futures'

News Story

Eight in 10 employers plan to hire in 2010

Monday 1st February 2010

By Mike Jones

Some 82% of European companies are planning to hire employees to new positions in 2010, according to a new survey by leading global professional services company Towers Watson.

However, most of these companies expect hiring to remain at best sluggish – with 45% saying it will be below levels typical of past years.
 
Moreover, while most companies are hiring, 49% still expect to make workforce reductions in 2010 – 5% say these will be broad-based and 44% say they will be targeted. This compares with 12% who have made broad-based reductions and 55% who have made targeted reductions since the start of the financial crisis.
 
The Towers Watson survey, conducted in early January and based on responses from 131 mostly large employers across Europe and 459 employers globally, found that while the picture is slowly improving, Europe lags North America. For example, 92% of US companies indicated they would be hiring in 2010 and only 37% expected workforce reductions.
 
Not surprisingly, given employment patterns both pre- and post-crisis, 40% of the survey respondents in Europe agree that it’s easier to retain talent now than it was before the financial crisis.

However, 48% think that retention will be more difficult a year from now. Respondents also noted a rise in productivity over the past year, with over half (54%) agreeing that employee productivity had risen compared with pre-financial crisis levels, and more still (57%) expecting it will continue to rise by next year. Interestingly, the recession’s impact on employee engagement has also been mixed. While 23% report lower engagement today, 33% believe employee engagement has risen since before the financial crisis. For 2010, far more companies expect engagement to rise (41%) than decline (10%).
 
"Without question, the last 18 months have been challenging for employers and employees alike, and while there are signs of improvement, it’s clear we’re not going back to 'business as usual' anytime soon," said Laura Sejen, global rewards practice leader at Towers Watson.

"While it’s heartening – and a testament to employer focus and employee commitment – that productivity has increased, that’s also part of the reason for slower hiring and more caution about increased investments in workforce programmes. As always, the question is how lean can companies run – especially as demand for products and services rises? Those slower to reinvest in their workforce could find themselves at a competitive disadvantage."