January - HR Review

January – HR Review

Executive recruiters feeling optimistic about 2010

Executive search professionals are showing renewed levels of confidence at the start of this New Year.
According to new research from the vast majority (91%) of executive search consultants hold a neutral to positive outlook for the executive search business in 2010.
Over three quarters (77%) expect revenues to increase this year, and over half are planning to recruit more consultants this year.
These outlook results for 2010 indicate very strongly that the executive search business, and thus the senior executive hiring market, has turned a corner. It is indicative of a new spring in the step of top management of organisations and a realisation that with a new environment decisions about the quality of executive teams are of paramount importance.
Those involved in the research believe that the Healthcare/Life Sciences and Energy/Natural Resources industries will see the most amount of growth this year
Prepare for AWD now
The Agency Workers Regulations have been laid before Parliament this week. It has been confirmed that this legislation will come into force in October 2011, resisting pressure from the Trade Unions for its earlier implementation. However, we remain concerned about the costs and administrative burdens that this new legislation will impose on employers. We have also called for clear and early guidance.
Employers should begin preparing for implementation of the agency workers directive as under the legislation, as well as the right to annual leave and bonus schemes, agency staff will also have the right to take up to 26 weeks maternity leave without breaking their 12 weeks ’continuous service’ record. Employers that flout with the rules or who move staff around in very different roles every 11 weeks to avoid triggering their employees’ continuous service rights could face tribunal claims and fines.
Although the new rules don’t come into force until October 2011, employers will need to think about how they will budget for these new requirements now, and how they are going to place agency staff within their business in the future, to ensure they can still maintain a flexible workforce without breaking the rules.
Exports support manufacturing growth
Manufacturers have seen output rise for the first time in two years with exports helping to improve figures, according to business lobby group, the CBI.
The group’s latest quarterly Industrial Trends Survey revealed a stronger-than-expected rise in output in the three months to January, with 31 per cent of the 461 manufacturers surveyed claiming that output rose during the three-month period.
However, the CBI warned that the outlook for the sector remains uncertain, with domestic demand still weak and firms struggling to access finance. Domestic demand was weaker than expected with 18 per cent of manufacturers reporting a rise, and 26 per cent a drop in demand.
Nevertheless export orders rose for the first time since January 2008 with help from the weak pound and increasing global demand. The survey showed that 30 per cent of firms had experienced export growth during the quarter, while 24 per cent reported a fall.
Exports are expected to grow more strongly in the next quarter (+13 per cent), and 19 per cent of firms are the most optimistic about export prospects for the coming year.
The survey also showed that the rate of job losses across the sector is slowing. A balance of -13 per cent indicated a drop in staff numbers during the quarter, an improvement on October’s balance of -34 per cent.
More than 10 per cent of firms surveyed said that they are planning on investing in more on training, while 15 per cent said they would invest in innovation.
The availability of finance remains a concern, and is cited by 13 per cent of firms as a factor likely to limit output, and by 12 per cent as likely to limit export orders. Despite this, sentiment about the overall business situation is continuing to improve, with 12 per cent of firms more optimistic than three months ago.
The new Equality Bill and its implications
The new Equality Bill has been hailed as a landmark move to harmonise discrimination legislation and to strengthen the law to support progress on equality. The long-awaited bill follows more than four years of reviews, discussions and consultations. It passed through the House of Commons and is currently being read in the House of Lords. It is expected to receive Royal Assent in spring 2010 and to come into force in October 2010, with some public sector provisions being delayed until April 2011. The new law will have effect in England, Wales and Scotland.
The bill will have a big impact on employers across all sectors and, to minimise risk, they should ensure that their equal opportunity and recruitment policies are compliant when the new legislation comes into force. The bill will require organisations of all sizes and types to promote equality and avoid discrimination in the workplace. The new law is likely to have a greater impact on smaller organisations as they are less likely to have comprehensive anti-discrimination and harassment policies already in place. Whilst this will mean extra work, once in force it should ensure that both employers and employees benefit from a fairer and more transparent workplace.
It will also tackle the pay gap between men and women by consolidating and clarifying the existing discrimination legislation concerning sex, race, disability, sexual orientation, religion or belief and age, and it seeks to adopt a single approach where appropriate. This will enable employees to claim discrimination caused by a combination of two characteristics, such as race and gender, for example.
The bill also contains a number of important changes to the law, of which the key changes are outlined below.
• Addressing the pay gap between the sexes
• Banning pay secrecy
• Harassment definition extended
• Information and positive discrimination
• Wider powers for employment tribunal
• Public Sector Equality


BCC: £25.6bn worth of red tape could risk recovery
Anticipated employment regulations and taxes will hit the UK with a bill of £25.6bn, hampering job creation and recovery, according to the British Chambers of Commerce (BCC).
Changes directly related to employment planned April 2010 to April 2014 include:
• 2010: The Equality Bill : a one-off cost to business of £190m
• 2011: The Agency Workers Directive: an annual recurring cost to business of £1.5bn
• 2012: Pensions Reform: an annual recurring cost to business of £4.8bn