Recruitment and Employment Confederation Employers Tracking Study: Summary

1. Recruitment and Employment Confederation Employers Tracking Study: Summary 2011 Quarter three – December 2011 Prepared by Market Shape Ltd Cordoba Services

2. Contents • Economic and trading situation • The workforce • Talent management • Management of temporary workers • Agency selection • Agency assessment • Agency Workers Directive (NOTE: new questions featured here) • Current Issues

3. 1. Economic and trading situation – background The rate of increase in claimant numbers has slowed significantly

4. 1. Economic and trading situation – background Use of temporary staff continues to decline slowly

5. 1. Economic and trading situation – background Consumer Confidence is at an all-time low according to Gfk NOP "The two point drop in the index this month means consumer confidence is now at its lowest ebb in almost three years. In fact, in the 37 years the index has been running it has only been lower on two occasions – a single month in 1990, and eight months during the 2008-2009 recession. "Optimism has not been lifted by pre-Christmas spending and it is hard to see grounds for a recovery in confidence in the near future. The eight per cent drop in the score for the general economic situation over the next 12 months is significant and will make chilling reading for the Government and British businesses.” Nick Moon, Managing Director, GfK NOP Social Research

6. 1. Economic and trading situation – background Lloyds Bank notes that “As this indicator leads quarterly GDP growth by 3-4 months, it suggests that economic activity will progressively weaken during the first quarter and the start of the second quarter of 2012”

7. 1. Economic and trading situation • What do you see as the most important challenge facing your organisation in the next 2 – 3 years? Percentage of respondents Base: All respondents, single response

8. 1. Economic and trading situation • Have you made any of the following changes to your workforce in the past year? Percentage of respondents Base: Respondents who have been affected a bit or much more by economic changes, multiple response

9. 1. Economic and trading situation Have you made any of the following changes to your workforce in the past year?

10. 1. Economic and trading situation • How much capacity is there in your business to take on more work without creating more jobs? Percentage of respondents Base: Respondents who have been affected a bit or much more by economic changes, multiple response

11. 1. Economic and trading situation • To what extent have your total workforce costs increased over the past 12 months? Percentage of respondents Base: Respondents who have been affected a bit or much more by economic changes, multiple response

12. 1. Economic and trading situation • When do you expect to see conditions improve for your organisation? Percentage of respondents Base: All respondents, single response

13. 1. Confidence barometer 50 Growing prosperity 40 30 20 10 0 Neither better or worse -10 -20 -30 -40 -50 Serious problems The REC Employers Confidence Barometer lifted 3 points in October, suggesting greater confidence in the ability to maintain employment levels • * The Confidence Barometer is calculated from the responses to the following questions: • When do you expect to see conditions improve for your organisation? • In the next 3 months, and 4 to 12 months, do you think that your organisation’s use of agency workers will increase or decrease? • In the next 3 months, and 4 to 12 months, do you think that your organisation’s use of permanent workers will increase or decrease? December 2011 = 24 Base: All respondents

14. 2. The workforce • In the next three months, do you think that your organisation’s use of permanent and agency workers will increase or decrease? Percentage of respondents Base: All respondents, single response

15. 2. The workforce • In the next four to twelve months, do you think that your organisation’s total workforce will increase or decrease? Percentage of respondents Base: All respondents, single response

16. 2. The workforce • In the next three months, do you think that your organisation’s use of agency workers will increase or decrease in these functions? How will your temporary workforce change in the next three months? Base: Respondents who use agencies, multiple response

17. 2. The workforce • In the next four to twelve months, do you think that your organisation’s use of agency workers will increase or decrease in these functions? How will your temporary workforce change in the next twelve months? Base: Respondents who use agencies, multiple response

18. 2. The workforce • In the next three months, do you think that your organisation’s use of permanent staff will increase or decrease in these functions? How will your permanent workforce change in the next three months? Base: Respondents who use agencies, multiple response

19. 2. The workforce • In the next four to twelve months, do you think that your organisation’s use of permanent staff will increase or decrease in these functions? How will your permanent workforce change in the next twelve months? Base: Respondents who use agencies, multiple response

20. 2. The workforce What proportion of your temporary staff transfers to become permanent members of your workforce? Temp to perm transfer scores NOTE: The transfer score is based on estimated numbers of people transferring, weighted by organisation size in employee numbers

21. 2. The workforce • In the past 6 months, how many people have you recruited? Percentage of respondents Base: All respondents

22. 3. Talent management • In which job functions have you used agency workers during the past year? • (Top ten functions) Percentage of respondents Base: Respondents who use agencies, multiple response

23. 3. Talent management • In which areas do you expect to find a shortage of appropriate candidates this year? • (Top functions) Percentage of respondents Base: Respondents who use agencies, multiple response

24. 4. Management of temporary workers • How important would you say that agency workers are for your organisation in terms of the following? not at all important (1) (5) very important Base: Respondents who use agencies, single response

25. 4. Management of temporary workers • In terms of agency workers pay rates, would you say that…? Percentage of respondents Base: Respondents who use agencies, single response

26. 4. Management of temporary workers • Which one of the following actions would you take if you couldn’t use agencies to provide temporary workers? Percentage of respondents Base: Respondents who use agencies, single response

27. 5. Agency selection / Recruitment channels used • How do you recruit temporary workers? (Top 10 ways) Percentage of respondents Base: Respondents who use agencies, multiple response

28. 5. Agency selection / Recruitment channels used • How did you / does your organisation decide to use agencies? (Top 10 ways) Percentage of respondents Base: Respondents who use agencies, multiple response

29. 5. Agency selection / Recruitment channels used • How important to you are the following factors when it comes to choosing and using a recruitment agency to cover temporary positions? not at all important (1) (5) very important Base: Respondents who use agencies, single response

30. 6. Agency assessment • How important is / are your agency / agencies in helping your organisation meet its corporate objectives and strategy? Percentage of respondents Base: Respondents who use agencies, single response

31. 6. Agency assessment • How satisfied are you overall with the agencies you have used in the last 2 years? Percentage of respondents Base: Respondents who use agencies, single response

32. 6. Agency assessment • How effective are your agencies in helping to fill in any gaps in the skills or capabilities of your organisation? Percentage of respondents Base: Respondents who use agencies, single response

33. 6. Agency assessment • What could these recruitment and employment agencies do to improve their service to you? Percentage of respondents Base: Respondents who use agencies, multiple response

34. 7. The Agency Workers Directive Are you aware that the rules concerning the use of agency workers changed in October 2011? Base: All respondents

35. 7. The Agency Workers Directive Did your Organisation make any changes in the use of Agency workers before October 2011 because of the new rules? Base: All respondents

36. 7. The Agency Workers Directive What changes did you make before October 2011 due to the new rules? Base: All respondents

37. 7. The Agency Workers Directive Has your organisation made any changes since the Agency workers rules came into force in October 2011? Base: All respondents

38. 7. The Agency Workers Directive What changes have you made since October 2011 due to the new rules? Base: All respondents

39. 7. The Agency Workers Directive As far as you know, have the changes your organisation made as a result of the AWR …. Base: All respondents

40. 7. The Agency Workers Directive On the basis of the impact you have seen in your organisation, do you think the AWR has …. Base: All respondents

41. 8. Current issues • What impact do you think significant Public Sector spending cuts would have on your organisation? - Public Sector respondents only Percentage of respondents Base: Public sector respondents, single response

42. 8. Current issues • What impact do you think significant Public Sector spending cuts would have on your organisation? - Private Sector respondents only Percentage of respondents Base: Private Sector respondents, single response

43. Contact details • For further information, please contact: Roger Tweedy Recruitment & Employment Confederation Telephone: 0207 009 2119 Email: Roger.Tweedy@rec.uk.com • Mike Keep • Market Shape Ltd • Telephone: 01604 642 233 • Email: mike.keep@marketshape.co.uk • Michael Brewer • Cordoba • Telephone: 0844 879 4326 • Email: mbrewer@cordobaconsulting.co.uk