Do your homework

We support UK based recruitment agencies that place perms and contractors into Europe and the Middle East, and agencies based in Spain and Belgium who place in the UK as well as throughout the rest of Europe.  As a result we’re familiar with how employment law, commercial trading law and debt assignment law can vary – the latter, in particular, is not recognised in parts of the Middle East, so it’s imperative to do your homework before you look to grow your business abroad.

Speak to as many people as possible – both in your industry and from outside – who have successfully grown their business abroad to check out what problems they faced and also sweep the internet for advice, which will also help you to keep up-to-date with any new pieces of legislation.

Learn the lingo

If you don’t know your bonjour from your auf wiedersehen, then you’re in trouble! Whilst the majority of countries can speak basic English (at the very least!), it’s vital, in the first instance, to try and learn the local language and break the barrier, as a simple mistake could land you in hot water; it will also help with better communication with your staff, customers and suppliers. It is well known that people are much better disposed to do business with someone who genuinely tries to communicate in their language rather than blurt out in English like a Colonel Blimp.  Alternatively, you could consider hiring a multi-lingual member of staff, who can help with translations.  In addition, each country has their own way of doing business, so understanding their culture is equally as important as learning the lingo.

Red + tape = a big problem if you don’t prepare!

Without question there will be plenty of red tape and government regulations to get through if you work abroad; it’s imperative therefore to hire a good lawyer who can help go through this with you and has experience of working in that particular country and with their legal system.  Most of the barriers in Europe will be similar to those found in the UK, but there will be domestic legislation that you will need to be aware of and adhere to.

It’s important to be aware that your tax position will change and is dependent on how long you spend in the UK; this is something the Inland Revenue can check for you.

Obtaining your work permit or visa will take the most time to arrange, and varies from each country, so make sure you leave enough time to get this sorted before you start work.

Fix your finances

You will need to assess your finances before taking the plunge and moving anything to your new country of residence.  Ask your UK bank to provide a list of bank recommendations and a letter of introduction.  If you are paid in the local currency, then stick with a local bank; otherwise you can accept payments if you keep your UK bank account. Also check your pension contributions (if any) and health insurance requirements (usually covered by the employer). If you are planning for a long term assignment and transfer your family, you will need to check out schools, accommodation and regular flights home (in some cases employers will foot the bill, but it depends on your package).

Find someone who knows their numbers

Hiring an accountant who has experience of working in that country will be money well spent, as they will be able to explain the tax system for you and flag any barriers that could prevent you from working in that country or losing some of your profits.  They can also advise about the level of tax you will have to pay, as some countries pay low rates of income and corporation tax combined with higher tax rates, which means you will pay more throughout the year each time you make a payment, rather than pay one lump sum.

Find out how you will get paid

Whether it’s Sterling or Euros, you need to know which currency your hard earned work will be paid in, as it could mean you take home less money or a lower salary than expected.  Don’t be left with a nasty surprise when you receive your first pay-slip or invoice!

Say goodbye to huge phone bills

Technology has come on so much during the past few years, so with VoIP (voice over internet protocol) systems like Skype – a phone line over the internet – you needn’t worry about huge phone bills if you’re calling back to the UK or elsewhere in the world, as you simply pay for the internet connection.

One more thing…

Finally, and perhaps most importantly, relax!  Enjoy the experience of working abroad and make sure you take full advantage of different cultures, languages and people! As the world gets smaller, don’t miss out on your chance to get to see more of it…but at a price that you can afford.

A new National Register of Recruiters has been launched in the UK supported by government, a free-to-list register of UK recruitment firms, increasing their visibility to employers and candidates by ensuring they appear in more online search results.  Agencies are being urged not to miss out on opportunities the register will offer as definitive guide to UK recruiters.

The register will be heavily marketed to job seekers, employers and government as a central point to source recruiting firms that meet their needs.  With over 75% of hires being driven by internet activity, the register will boost online visibility and reach to the listed recruitment agencies, as well as providing them with huge added potential to attract new customers and candidates, a powerful addition to their online marketing strategies.

Steve Keeler, Head of Government’s ‘Employment Agencies Standards Inspectorate’ (EAS) said:
"BIS/EAS works with all stakeholders in the recruitment sector to ensure compliance with legal obligations.  IOR's National Register of Recruiters should increase awareness of the statutory requirements for recruiters, which is something we support".  

Data from the register will be collated into monthly ‘industry reports’ freely available to recruiters and shared with government.  In addition, listed recruitment companies can display a ‘Gold Standard’ mark if they complete a voluntary online audit in line with compliance standards enforced by the EAS (Employment Agencies Standards Inspectorate).

Azmat Mohammed, Director General at the IOR said:
“Supporting job seekers, employers and government by offering a single port of call to see which agencies meet their needs is a must for the industry.  I am sure this national register will develop into a strong source of revenue for the agencies registered on it”.

Lindsey Bell, Partner at Clarke Willmott LLP and Employment Specialist to the IOR said:
“The National Register of Recruiters is yet another innovative tool that public and private sector employers will find easy to use.  The online audits will be robust and allow employers further confidence in the way their recruiting partners are complying with legislation.”

Any UK recruitment agency (IOR member or not) wishing to register their firm (or local branch) on the National Register of Recruiters can do so freely at http://www.theior.org.uk/national-register-of-recruiters

** Important Announcement  **

Recruitment now has an official British Institute, offering a new perspective for recruiters and agencies.  It will show the industry how to generate new revenue streams, even from clients not hiring.  Take a look.

At CV-Library we’ve never been busier and 2012 has been non-stop so far; from our first ever TV campaign and London underground advertising to record breaking stats backed up by our latest independent ABCe audit. Year on year and month on month we’re receiving more site visits, CV registrations and job applications. So, I’m not sure why people think LinkedIn is killing job boards?

LinkedIn is a fantastic tool and definitely something our sales team keep an eye on. We’re certainly not naive and we understand that recruiters need to use a variety of platforms; but the truth is LinkedIn is simply not a competitor of ours.

LinkedIn actually supports what we do and demonstrates how easy it is to recruit; this has encouraged a lot more start up companies and gives recruiters the confidence they need to ‘go it alone’. As soon as these companies become more established and the free sites can’t meet their demands online job boards automatically join the equation. We pride ourselves on the support we offer all of our clients, whether they’re a one man band or a well-established global corporate.

We’ve started to notice an increase in the number of small start up agencies and we’re welcoming them on board – thanks LinkedIn!

Job Board Expert

A version of this subject matter is probably the most discussed topic in the recruitment industry … apart from the economy of course! However, this quote is more insightful because it delves in to the business models within the recruitment process rather than the normal bleating from squeezed agencies. Austerity measures don't just bring with them binge drinking and chain smoking amongst frustrated recruiters. They also drive efficiencies and new business processes, with mixed results in my opinion. 

The length of the current recession has meant that clients, especially larger corporate entities, have had the time and incentive to develop their own recruitment capabilities. They are more focused than ever on maximising return, paying less fees to agencies and improving their in-house systems and teams. At each stage the process has become more automated and often the distance between the recruitment consultant and the hiring manager has increased. You can argue about whether the process has become more sophisticated or just more truncated. 

What I have noticed is that recruitment consultants, especially those newer to the industry, have become so used to the 'factory processed' corporate recruitment models that they have forgotten the art of recruitment, sales and networking. Too many consultants have become reliant on the active or 'just below' active candidate pool. Just using job boards and LinkedIn as extension of your database is not enough. If you can't add more than an in-house team can do for themselves then you won't get the fees and frankly don't deserve them. At best, your margins will be driven down through lack of value, correctly in my view. 

What good recruiters do have is access to and influence on their chosen candidate communities. They have buy-in and trust that in-house teams do not have the ability to invent. They have access to a wider client / job pool that candidates want. They have knowledge of their client's market place and insights into projects, moves and trends that affect candidates movements and motivations. They also have to think about what they can provide, that in-house recruiters, job board advertisers and LinkedIn scanners don't have. As recruiters, if your model does not address this issue, you will struggle.

Are there enough jobs and fees to go round? The recruitment industry has such low barriers to entry that I believe it became over bloated in the good times with average and poor recruiters. In these austere times, the industry needed to shrink down and sort the wheat from the chaff. Those left need to differentiate themselves from their client's own resources or fail to justify their use.

But what is the difference and why do some businesses get it wrong and put themselves in trouble with the law? The difference, I was once told, between tax avoidance and tax evasion can be just the thickness of a prison wall.

In a nutshell, tax avoidance is essentially a legitimate way not to pay tax, or to pay a reduced amount of tax. A classic legitimate example of tax avoidance is investing in an ISA where no tax has to be paid on interest earned.  It’s in the more grey areas that tax avoidance schemes are high on the Government agenda, as they’d like to bring in a much tougher approach preventing large companies and extremely wealthy individuals using lawyers to exploit tax law loopholes to reduce their tax bills.  Tax evasion, however, (excluding errors) sees taxpayers, be they companies or individuals, deliberately hiding the true state of their finances from HMRC in order to reduce their tax bill; they overstate deductions or fail to declare all or part of their income, profits or gains than were actually earned.

As a company which supports temp recruitment agencies with their back office support and financing, we aim to remove the pressures of worrying about tax from our customers by helping them to pay less – the legitimate way – and subsequently improve cash flow.

One method of doing so is by using an umbrella offering, such as ‘gainsimply’, whereby the temporary worker’s payments are treated as though they were an employee of the umbrella, submitting their completed timesheets at the end of each week via an online system, in addition to informing us about any HMRC allowable expenses they wish to set off against income via our SMS TEXT service; we arrange for the issue and invoice the recruitment agency client for payment. A lower sum (income less legitimate allowable expenses) is then paid through PAYE, with the added benefit of payment for such legitimate expenses increasing their ‘take home pay’.  This system is widely being used within the recruitment industry at the moment, as expenses attract tax relief, which enables temporary workers to reduce the amount they pay in income tax and National Insurance in a legitimate tax avoidance way.  It means workers can take home more pay each week, get paid on time (when they work with Gainsimply) and recruitment agencies can enjoy increased margins and better cash flow. Gainsimply makes this legitimate umbrella tax saving solution much easier for agencies and workers than others by the use of text and web based submissions and text payment alerts for mobile workers, as well as the very important funding of the company invoices which ensures that workers get paid on time even when agencies fail to pay on time.

Systems like this are available to help support SMEs in sectors such as recruitment to continue growing, tender for lower margin contracts and increase their own profit.  However, some companies have illegitimately exploited the umbrella travel and subsistence systems in order to pay less tax than they should be which has possibly left the country with billions of pounds in uncollected tax from thousands of companies. Such a case is in the recruitment press as I write, concerning Reed; although it has to be said that Reed intends to appeal the tax tribunal decision.

If you’re unsure about how much tax your temporary workers could be paying, then our experts would love to hear from you and discuss the right finance methods for your business, simply reply to this post with your question.

Otherwise, you can find out more about tax at www.hmrc.org.uk.

Flitting between different social networks searching for active candidates is a time consuming and ineffective use of your energy. Instead consider using a dedicated tool designed to help you manage multiple social networks. Recruiting via social media is so much more than just posting jobs on Twitter or LinkedIn; building relationships with those in your networks will give you a much better chance of identifying candidates as they are ready to make a move.

Our new, free, social media tool Bullhorn Reach includes a 'radar' that alerts recruiters to subtle changes in a candidate's social media profile. This gives the recruiter first mover advantage as they identify those looking for a new job before a CV has even been posted. Reach helps recruiters build their social media profiles and connect with thousands of candidates over the big three; Twitter, Facebook and LinkedIn. It can also be used as a candidate management aid, as it provides excellent insight into an individual’s online activity and current working environment.

One of the biggest challenges recruiters face once they realise they need to engage with social networks is dealing with the sheer volume of data that flows in their direction – it can quickly become overwhelming. The competition for talent in booming sectors of the market means recruiters must have all the latest information at their fingertips. Social media spans generations and unless recruiters are monitoring the popular social networks, which to do manually is time-consuming, then they could be missing out on thousands of potential candidates and vital pieces of intelligence. Social media also allow them to gain a better understanding of the candidates they’re dealing with; job histories, experience and connections are all accessible, improving the process of matching candidates with open job orders.

Social networks are popular with UK recruiters and our annual trends survey (due out in a couple of months) will closely examine exactly how it’s being used. However a large portion of the market still doesn’t know how to extract the maximum potential from it as a resource. This needs to be rectified because social media, while constantly evolving, is here to stay, and you can either exploit them to their full potential or get left behind as your competition scoops up the best candidates before you even know they’re available. 

Peter Linas – Bullhorn EMEA MD, Recruitment Software Expert

Less than a year since the Institute of Recruiters (IOR) launched, it has gained the backing of the Government in taking on the role of standards champion for the UK recruitment industry. It now has two key goals – making British recruitment the gold standard globally and becoming the biggest UK recruitment body by the end of 2013.

The IOR has been granted official UK Institute status by the Secretary of State for Business Innovation and Skills, Dr Vince Cable. The first new institute to be created in 2012, the IOR has gained recognition as a professional recruitment membership body of the highest standing. It is also the only official British institute to offer membership to both recruitment companies and individual recruiters.

Azmat Mohammed, Director General of the IOR, comments: “Government is at the very heart of the recruitment industry. We are dependent on it to steer us in an increasingly fast-moving legislative landscape and in the governance needed to achieve the gold standard in British professional services. Equally, in the spirit of the Big Society, we need to be in a position to partner with Government in the adoption of standards, codes of conduct and compliance that will ensure Britain leads the way globally for recruitment best practice, training and talent.

“As a named British Institute, we now have the confidence of the UK Government to be the recruitment organisation that can step into the breach and drive this agenda. At the same time we will provide all the necessary education and innovation to our members, equipping them with the additional knowledge and skills to ensure a proud British recruitment industry, highly regarded internationally.”

The IOR has cemented close links with the Employment Agency Standards Inspectorate (EAS), adopting its standards as its own conduct regulations. Equally, its professional qualifications are directly linked to the British National Occupational Standards in Recruitment and British universities, ensuring that, in terms of both compliance and training, the IOR is adopting British best practice.

Former Minister for Employment Relations, Consumer and Postal Affairs, Ed Davey, has already welcomed the IOR’s contribution in raising awareness of the requirements of the employment agency legislation.

“It makes sense to partner with those organisations that have identified what is required in terms of the regulations, qualifications and conduct to be best in class,” adds Azmat. “One of our roles is to help members conform to Government-set standards and, as such, work to best practice. Our focus is on providing the necessary professional services to offer members the opportunity to become world-class and, in doing so; grow their careers and their businesses.”

With the aid of these paradigm-shifting developments, the IOR hopes to increase its membership substantially in the next year. With more than 2,000 members and growing fast, it could become the biggest UK recruitment body by the end of 2013.

Commenting on the news of the UK Institute status, Lindsey Bell of IOR legal partner, Clarke Willmott LLP, says, “Having worked with the recruitment sector and its legal issues for many years I believe the IOR will be a valuable asset to the industry. I’m looking forward to working with its members and assisting with their training and legal compliance.”

Membership of the IOR is available on several levels, based on assessed and qualified standards.

Individual membership starts at a free affiliate level, rising to £49 as a fellow and £249 for corporate membership. There is no joining fee.

More information can be found at http://www.theior.org.uk

ENDS

Image:

Kevin Bowers Lockton Company (Recruitment Insurance)

Dave Barber – Director of Sales, IOR

Pamela Butler, Director, Kingston Smith LLP (Accountants)

Azmat Mohammed –Director General, IOR

Matt Newman, Kingston Smith LLP(Accountants)

David Montague – Head of Regional Directors, IOR

Lee Biggins – MD @ CV Library

Lindsey Bell – Partner @ Clarke Willmott

Taken on Westminster Bridge, London with the IOR certificate of Institute Status.

Note

The Institute of Recruiters (IOR) is the professional body for HR, agency and in-house recruiters, founded to represent the interests of those in the sector in the UK and overseas. Run by experienced recruitment professionals, the international not-for-profit body is serious about personal development for those in the sector and provides world-class, transferable university qualifications as well as more than 100 CPD events each year.

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The ego state in which we communicate in, can have a direct result on the behaviour we get back from our consultants. For example if we communicate in a Parenting way, then we are encouraging a response from the Consultant’s child. If I say to a Consultant ‘have you called that manager yet’ in a tone of voice that is almost saying ‘I know you haven’t’ then we could unconsciously be asking ‘have you done your homework yet?’ which may result in a ‘sulky no’ or a ‘yes but they weren’t there’. Either answer could be true or false.

If as a manager I over nurture my consultants, support them, look after them, answer all of their questions (even when they know the answers) then I am setting up a Consultant to be dependent on me which could hold their development back.

The TA model says there are 2 types of Parent states – critical and nurturing which both examples above describe. There are 2 Child ego states – ‘adapative’ (I will do everything you say) and ‘rebellious’, no explanation needed for that one!

That leaves us with the adult state which I believe is where we can get the best out of our consultants on an equal playing field where both parties are communicating in an adult way with each other. The next time you get a response from a Consultant which wasn’t what you were expecting have a look at the way you spoke with them and what ego state of theirs you engaged. Here are some common examples in the recruiting day:

Manager: Why didn’t you say what I told you say on that call? (controlling parent)

Adult Manager – what stopped you from saying what we discussed?

Manager: I will write up the objectives you have agreed and email them back to you (nurturing parent)

Adult Manager: When you get back to your desk please email me what we have just agreed so I can keep a record of it.

Manager: You need to act with more urgency, you are not picking the phone up enough, you must do more calls (controlling parent)

Adult: I notice your call numbers are lower than everyone else’s, what needs to happen for you to step it up?

Interesting isn’t it?

Yes we need to give consultant’s feedback in a direct manner, address poor performance and give them support and encouragement but there is an art to how we do these tasks to ensure the response we get back, is a productive one and will lead to the desired end result – to empower them (not parent them) to make placements.

I was recently reading a book by the great coach and motivational speaker, Les Brown and he shared this story, which I would like to share with you.

A couple on holiday walk past a house where a family are sitting on chairs in their porch. Lying in between them is their dog which is moaning and groaning.  This scenario happens over several days when the couple passed the family. Confused, the couple decided if the same scenario happened the following day that they would ask the family about it.

Sure enough the next day, the same thing happened when they walked past the house.  So they finally ask the family, “What is wrong with the dog?”

The lady replies that there is nothing wrong with the dog; he is lying on a board that has a nail sticking up.  It bothers him enough to moan and groan, but it’s not irritating him enough to get up and move.

Can you identify with this story?  How many situations have you been in where you’ve moaned and groaned about something, but was not irritated enough to get off the nail and do something about it. When will you do something about it? Or do you want to keep shifting around the problem and moan and groan some more, when the nail hits another part of your body?

Every day I get emails and phone calls from recruitment business owners moaning and groaning about the performance of their consultants, or moaning about not having enough business. I explain that it’s not their fault because they have never been taught how to run a business.  Neither have they been taught how to use marketing successfully to grow their business.

I then go onto to explain that there are books, CDs, recruitment organizations and coaches, where they can access information to help them overcome the problems they are moaning and groaning about.

The amazing thing is when we speak to them 3 months later to see how they are getting on, the majority of them respond with, “We have been really busy and haven’t got round to it yet.”

Apparently in a recent study carried out in the USA, it was found that 93% of self help books never get completely read by the purchaser.  But guess what, those recruitment business owners that do read the self help books, listen to CDs, talk to recruitment organizations or coaches and take action, do get results.

It is really easy to moan and groan about your consultants, clients and your candidates. It’s easy to moan and groan about the economic climate. In fact anybody can do that and most people do. It’s the successful ones who get off the nail and take action.

Which one are you?