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Speaker: Adrian Marlowe - Chairman

RPO – a boon for recruitment?. Speaker: Adrian Marlowe - Chairman. AWR AWR Guidance Employment Tribunals S ocial Media IR35 Conduct Regulations 2003 targeting the issues that really matter. = Effective proactive lobbying + Quality Support Services. Think Tank. Legal expertise.

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Speaker: Adrian Marlowe - Chairman

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  1. RPO – a boon for recruitment? Speaker: Adrian Marlowe - Chairman

  2. AWRAWRGuidanceEmployment TribunalsSocial MediaIR35Conduct Regulations 2003targeting the issues that really matter

  3. = Effective proactive lobbying + Quality Support Services Think Tank Legal expertise Vision for recruitment and supply Commercial knowledge

  4. 2013 • Big business - consolidation • Small business – competitive conditions Recruitment Process Outsourcing = big business 128 Councils use RPOs or MSPs

  5. Is RPO model a boon for recruitment? • Interposition removes direct relationships – not good • Introduces tighter margins - horrible • BUT • Retains the use of external recruiters by hirers • Gives the service the hirers want

  6. Is RPO model a boon for recruitment? • single contract • single point services for all requirements • access to wide range of recruitment businesses and candidates • lower rates • lengthier payment periods • stronger bargaining power • less administration = Cost savings

  7. In pursuit of RECRUITMENT Growth

  8. ARC campaign re ‘pay when paid’ and problem clauses since 2010 • Request by government to provide evidence – October 2012 • Consultation on Agency Regulations – January 2013 • Surveyed members and collated info • Response to government 11th April 2013

  9. Problematic clauses • Pay when paid • No certainty for payment • R.12 – must pay worker • Advantage to those self financing • Or higher cost finance, and harder to obtain credit insurance • Low margin, uncertainty, higher cost = risk • Excludes some agencies from marketplace • Removes opportunity from candidates

  10. Problematic clauses • B. Restrictions on assignment of debt • Stops factoring and invoice financing, or • Pushes agency to use RPO finance model? • Excludes smaller agencies from the marketplace • Removes opportunity from candidates • C. Info required within specific time • Reason for delayed payment • No obligation to correct by RPO • Possible non payment

  11. Problematic clauses • D. No obligation to make claims from hirers • No recourse to recover monies owed where payment not received by RPO from Hirer • = unlimited payment period • E. Delay on payment for technical reasons • Puts payment at risk

  12. Problematic clauses • F. Exclusion of right to contact the Hirer. • Hirer precluded from identifying real problems • Inability for agency to obtain AWR information where RPO requires indemnities • G. Requirement to use additional services. • e.g. payment for use of electronic portal • e.g. requirement to use a specific umbrella

  13. Any clause allowing for delay = risk • Invoice discounting/ factoring in principle • Refactoring after 123 plus days • Credit insurance problems • Light balance sheet • Communication problems = risk • Additional services = RPO control • = “Monopoly”

  14. Problematic clauses • Question • Is the Hirer necessarily aware of • various requirements and conditions • advantage to RPO of specific requirements • potential prejudice to candidate accessibility ?

  15. Is RPO model a boon for recruitment? • Round up: • Genuine need for • Single point contract and services • Cost savings to hirer • Problems • Lack of transparency – do hirers know the full picture? • Uncertain payment terms • Unfair clauses allowing for delayed or no payment • Total restriction on hirer contact • Requirement to use additional services

  16. ARE RPOs a boon for recruitment? • Solution: • Amend Conduct Regulations to rule out payment uncertainty, i.e. must be a fixed period • Preclude RPO additional services for which there is a charge either for the EB or the agency worker • RPOs then must deal with Hirers on realistic terms

  17. 2013 Code of conduct? Difficult operating conditions for 2nd tiers Money short, terms tough Is the aggressive RPO model sustainable? To get balance right requires targeted approach ARC supporting both 2nd tier agencies and Longer term RPO strategy

  18. What ARC members benefit from: Support Services = immediate short term support Lobbying Services = long term value Engage with an effective support group

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