Guest Blog: Is the recession really over?

October is the month we heard that the UK is officially now coming out of recession but what does this really mean for supply chain and logistics?
Recent surveys show differences between various sectors.

• Retail employment is growing at its fastest rate in two years but all growth in jobs and shop numbers is coming from the food sector.
• Online grocery is currently just 3% of the overall grocery market but is the fastest-growing sector, estimated to double in value to £11 bn by 2017, in spite of a large number of on line customers regularly experiencing late deliveries and not being informed if the delivery is running late.
• In non food retailing the number of outlets and full-time jobs fell.
• Retail chains shut 30 shops a day in July and August and Argos has announced the closure of 75 stores, with Optical Express closing 40 stores and Comet filing for administration. 
• And yet John Lewis goes from strength to strength, Screwfix has opened its 250th store and Marks & Spencer are seeking to fill 100 graduate roles in logistics.
• In the auto industry, Land Rover and Toyota are performing well but other companies are having problems. Japanese carmakers Nissan and Toyota are cutting production of vehicles in China because of lack of demand and Ford are cutting back on inventory and costs, announcing 1400 redundancies at Dagenham and Southampton, with the closure of the Transit assembly line.

We have seen the collapse of companies such Waverly TBS but there does seem to be a mood of optimism in 3PL, warehousing and distribution. Jack Richards and Potter Group report increased profit. Royal Mail is  to create 1,000 jobs in its parcels business and Marks and Spencer is recruiting 1,000 staff for its new 900,000 sq ft distribution centre at Castle Donington.

Looking across the Job Boards and the increasing number of jobs in supply chain and logistics industry, there is clear evidence that overall the sector is looking forward with confidence to the future.

Terry Abra

JLC Solutions
www.jlc-solutions.co.uk

Self-employed doesn't have to mean you’re on your own

Recent reports that we’re out of recession show that there’s light at the end of the tunnel for many businesses that have been struggling in a difficult market. There has also been a fall in unemployment, which is further good news for the UK’s economy. Interestingly though, it seems that the rise in the number of employed individuals has much to do with them taking control and setting up alone rather than waiting for a full-time permanent job to come up.

This has been helped by the New Enterprise Allowance scheme, whereby 33,000 extra job-seekers are given expert coaching and financial support to set up their own business. Individuals have instant access to support when they claim Jobseekers Allowance, rather than having to spend six months on benefits before they qualify for start up money. Also, job-seekers interested in setting up their own business are teamed up with a mentor, giving them invaluable guidance in drawing up a business plan.

It’s clear that this scheme will be of huge benefit to many budding entrepreneurs, as setting up your own business can be a fantastic alternative to traditional employment. But it can also be extremely daunting, so the support element provided by the Government is invaluable.

And this is something that we really recognise at TEAM – advice and guidance from others is fundamental for your business. Many of our recruiters are boutique and specialist, often with only a few employees. Therefore, it can be extremely difficult when it comes to keeping up with changes in legislation, for example.

We know that the support element of TEAM is actually one of the main reasons for becoming a member. In fact, we recently spoke to an independent recruiter who had come back into the industry after a long break. She told us that all of the new changes were extremely overwhelming, creating extra stress and anxiety. Since joining TEAM in September though, she doesn't feel on her own anymore, and has found allies in our other members that are going through exactly the same experiences.

Our meetings allow recruiters to discuss problems and offer advice amongst each other, because sometimes you just want to talk to people going through the same things as you. We also host presentations from experts on complex topics such as Umbrella companies, which always create brilliant discussions that everyone can benefit from.

So, if you’re just starting out on your own in recruitment, don’t struggle in silence. Even though you’re self-employed, it doesn't mean you have to go it alone, and the right support will put you in a much greater position.

Liz Longman
www.jobsatteam.com

TEAM - The Employment Agents Movement UK Limited

Registered in England No. 03949265 Registered Office 3 Hillbrow House, Linden Drive, Liss, Hampshire GU33 7RJ

Guest Blog from Hewett Recruitment: Warning regarding some recruitment agencies using travel and subsistence schemes for low paid workers.

A recent investigation on Radio 5 live exposed some employment businesses using Travel and Subsistence schemes as a tax loop hole.

Travel and subsistence payments can be made perfectly legitimately were the worker is genuinely incurring costs for travelling to different temporary places of work and receipts are produced as evidence. The problem lies where the scheme is not used for the purposes it was originally intended.  The main concerns are where low paid temporary workers are encouraged to join a scheme that is not relevant to them and doesn’t benefit them in any way, in fact they could be faced with a huge tax bill at the end of the day.  According to the report, these agencies are playing roulette with temps taxes to either increase their own margins or drive down costs to compete for business.  Payment is made through an umbrella or payroll company which in some cases is also owned by the employment business.  Low paid workers who live round the corner from their workplace and take sandwiches to work should not be included in this kind of scheme and are unlikely to be able to produce the relevant receipts required by the HMRC.

Most employers are trying to drive down costs and some of these deals may seem too good to be true, but on closer investigation they could be potentially dangerous both from an HMRC point of view,  if they consider the agency worker has been misled and damaging to an employer’s desire to be seen as an ‘employer of choice’.

Kevin Green from the Recruitment & Employment Confederation -the recruitment industry’s  governing body - was also interviewed on the 5 live programme and explained that they are in contact with the HMRC and have told them that they are very unhappy with the way schemes are being operated and pointed out that it is up to the HMRC to resolve and enforce this issue.

The Low Income Tax Reform Group also commented in a recent article, "We have little doubt that schemes which misrepresent the nature of the employment, or exaggerate the travel expenses incurred, exploit workers by putting them at serious risk of investigative action not only by HMRC but also the DWP."

For further information contact Louise Hewett – louise@hewett-recruitment.co.uk

Louise Hewett

www.hewett-recruitment.co.uk

Guest Blog: J1 CONSULTING & EX MILITARY HIRES What we can do for other TEAM members

J1 Consulting is relatively new to TEAM, and our membership is proving very productive.  However, it has become apparent that there is a lot of misunderstanding amongst other members about ex-military, and thus how we can help fill your roles.  That’s certainly no criticism in a country where an estimated 70% have never met a member of the Armed Forces, and the purpose of this short article is to dispel such misunderstanding.

What springs to mind when you think of the Armed Forces? 

Probably that sweating, overloaded Infantryman in Afghanistan.  But......

• How did he get there?   Someone organises the rotation of everybody within the 9500 strong force at their 6 month point, arranges transportation and ensures the availability of trained replacements.
• How is he fed and watered?  He (also of course in many roles she – though not the Infantry) must have fuel, food, ammunition and water to survive.  That’s a critical Supply Chain commitment, with local Procurement / Purchasing of some needs. 
• What about Vehicles, Weapons & Aircraft?  They lead a tough life – spares must be held, issued and accounted for, whilst Preventive & Repair Maintenance is ongoing. 
• Who tells him what to do?  Planners and Project Managers assist senior Officers in devising operational plans and ensuring these are resourced, with direction flowing down through a hierarchy of highly trained Team Leaders.
• How does he Communicate?  Via state of the art IT / Telecoms Systems that need to function 24 / 7. 
• Where is he based?  Possibly at Camp Bastion, which can accommodate up to 28000 people and handles 600 flights a week.  All the necessary infrastructure was constructed by the military, including roads, bridges, runways and water facilities.
• How is he looked after?  The necessary HR, Pay and Administrative functions are conducted in country – plus there are first class medical facilities should he be injured.
• The overlap of many of these specific skills with parallel civilian roles is obvious.
• At J1 Consulting, whilst we can source Operatives we tend to focus on Executives, Managers and Supervisors.  There’s a good reason: from Learn Direct’s ‘Work Ready’ report of May 2012, explaining £270m of wasted UK recruitment costs. ‘Advertisements are often too job specific, focusing too much on qualifications and experience rather than transferable skills such as time management, people skills and problem solving’ 

These are exactly the attributes that experienced, professionally vetted ex military offer – and it takes TIME to evolve them: much longer than to acquire sufficient experience to begin functioning effectively in a new sector.  We can also access candidates who have established successful commercial careers since leaving the military.

The Armed Forces are a much misunderstood (and thus under-utilised) Talent Pool – and real Talent is scarce.  At J1 we have both the military and the business experience to help Clients (and TEAM members) find a genuine Candidate fit from amongst what is also a very deserving community.  We operate on a purely Contingent basis.

Let us try and help you with your next problematic role – you might be very surprised!   Russ Tudge has specific responsibility within J1 for liaising with TEAM members, so do get in contact if you feel he can help or advise.  Russ is on 07412 542019 or r.tudge@j1consulting.co.uk.  

Nick Everard is Managing Director of J1 Consulting Ltd.  He is a former Army Lieutenant Colonel, Managing Director within the FTSE 100 Capita Group and member of the Board which sold the well known Adventure Travel business ‘World Challenge’ to the TUI Group in 2008.

n.everard@j1consulting.co.uk                                                                                  

Guest Blog: The Top 10 Irritating Things We See on CVs

Let’s face it, recruiters get a hard time.  The industry battles with bad press, a perception that it’s all about fees and we’re in the pub by lunchtime on a Friday. If only! It’s more like a plate-spinning marathon, juggling the client’s wish list against the deluge of candidate applications.  Some of these CVs and applications can range from entertaining to frustrating to downright baffling.

ISV Software asked the Recruitment and HR industry* to share the most irritating things you see on CVs. Here are the Top 10 howlers (now can someone just tell the candidates!) 

•  Spelling and Grammar Errors – far and away the most popular gripe. It shows lack of attention and time spent on the document. Favourites include a candidate who had worked at ‘Goldman Sucks’ and, from a TEAM discussion on LinkedIn earlier this year, a candidate who interacted well with ‘steakholders’.
• Photos – anyone for candidate’s holiday snaps, their wedding photo or adopting the ‘Hire me- I’m very professional’ pose?

• Cheesy phrases that add nothing of value – how many candidates have “excellent interpersonal skills” or “work well on their own and as part of a team”? What does this really tell you?
• Dear Sir - or Mr when you’re a woman and vice versa, this was even more contentious when the candidate has access to your name. Although one contributor was addressed as ‘Lady’ which they thought put a new spin on the introduction.
• Obscure formatting – different fonts, line spacing, random capitalisation… Not only does this make the CV look like a ‘cut and paste’ job, it makes it difficult to extract the relevant information.
• Lack of quantifiable achievements - candidates who simply churn out their job spec rather than outlining contributions make the job so much harder.
• Irrelevant information or experience – a waitress applying for a procurement role, a credit controller going for a PR job… why? If there are relevant skills, the CV should be tailored to highlight these. If not, then don’t waste our time!
• Generic cover notes – a template cover letter or email taken from the internet. You’ve seen them before and they get pretty tiresome. Plus they sometimes make you wonder if the candidate has read the job spec at all!
• Gaps in employment – you’ll spot them a mile away and are going to ask the question. It would be handy if the candidate could just address this from the outset.
• Too much or incorrect personal information – date of birth, marital status, religious beliefs; it’s all information that needs deleting before the CV can be submitted to the client. Worse still, out of service phone numbers or old emails so you can’t make contact.

*information gained from social media polls and discussion groups including the TEAM LinkedIn Group.

Amanda Davies

Sales & Marketing Director

ISV Group

Guest Blog: ‘Are you starting to supply or do you supply temporary workers ?’

For many years, it was an accepted industry practice that recruiters would supply labour to hirers using their own terms and conditions. These terms were generally based on the REC “model” standard terms and conditions and in it, from an insurance perspective, the recruiter tells the hirer that he doesn’t accept responsibility for negligent acts, errors and omissions of the worker supplied.

Providing the recruiter has sourced and supplied the right person for the job, then it is up to the hirer to make sure that the agency worker is doing his job to the hirers satisfaction.

Where the hirer insists his terms and conditions are used rather than the recruiter then the hirer may be looking to be “indemnified” or “covered” in simple English, should the agency worker cause injury or property damage, or make a mistake that costs the hirer money. In these circumstances, the hirer will make a claim against the recruiter and the policy, if set up correctly will protect the recruiter against legal costs or damage claims made against them, where they become legally liable. Therefore it is important that they let insurers know at the start of the policy or at renewal what percentage of turnover is done on standard REC terms or hirers non-standard terms. The premium will be calculated based on the percentage mix.

Some policies still insist that cover only applies where standard REC terms have been agreed. Be careful to notify insurers, if this changes.

Our Recruiters Choice policy doesn’t need you to refer every contract but you must discuss the fact that you do sign or agree non-standard contracts either at the start of the policy or at renewal, or at the first opportunity when you agree to work under clients terms.

Phrases to be aware of that may need you to refer contracts to insurers:-

• Where the hirer wants to be noted as an additional insured or co-insured on the policy
• Where the hirer wants Consequential Loss to be covered
• Where the phrase – unlimited indemnity appears in the contract
• Where the phrase wilful and malicious acts appears in the contact
• Where the legal jurisdiction is other than UK or EU (ie where a claim may be brought against the recruiter)
• Where the business services you are supplying are anything else but labour supply
• Where the contract requires a higher limit of indemnity
• Where the client wants you to cover the error and omission of the worker – this may require Vicarious cover on Professional Indemnity if supplying workers who are providing professional services

If you are starting to supply temporary workers as opposed to permanent workers, there could be many other issues that need reviewing apart from Liability and Professional Indemnity such as Legal Expenses, Employment Disputes and AWR.

It is important to discuss these issues with the broker to ensure the right cover is in place.
Don't rely on the umbrella company or single person Ltd company insurance policy - your name is on the contract.

The golden rule is that if you are unsure, then contact the broker and get a confirmation in writing to state that cover is in place for that contract.

Jelf Manson carries out contract vetting (from an insurance perspective) for all its clients which can assist in a contract tender situation – do not wait until the day before a contract commences as there may be a premium to pay for the higher contract risk, which will eat into your margin.

For more information please contact

Cathi Boult

0161 245 1274

07818 035 305

Cathi.boult@jelfgroup.com

Jelf Insurance Brokers Ltd* (Reg No. 0837227) is part of Jelf Group plc (Reg No. 2975376) and are registered in England and Wales at Hillside Court, Bowling Hill, Chipping Sodbury, BS37 6JX. *Authorised and regulated by the Financial Services Authority (FSA). Not all products and services offered are regulated by the FSA.

How much do you know about RTI?

You might be aware of changes that are being introduced regarding HMRC. In fact, even though the new system won’t be implemented until April 2013, some organisations are already involved in pilot schemes. But, if you aren’t familiar with the changes, you’re not alone. And it’s not too late to get to grips with it to ensure that your business is prepared.

So, next year, the introduction of Real-Time Information (RTI) will mean that employers tell HMRC about the tax, National Insurance contributions (NICs) and any other deductions when or before payment is made to employees, rather than waiting until the end of the tax year. This will mean that an electronic PAYE return must be filed every time employees are paid, but it won’t affect self-employed workers, such as contractors.

The idea behind this is to improve the way the PAYE system operates and make it more accurate for both employees and employers. Although potentially daunting, the whole process will become less of a burden. It removes the need for the end of year return (forms P35 and P14) and will also simplify the employee starting and leaving process.

And there are other benefits. PAYE will become more accurate for individuals, there will be a reduction in the number of bills and repayments sent after the end of the tax year, it will be easier for HMRC to pursue late payments effectively, and we’ll see a reduction in Tax Credits errors and fraud.

However, as with any new legislation, we can’t pretend that it’s going to be easy for business owners to adapt to the changes. Payroll can be a complex process and RTI will undoubtedly add to its challenges. At first, it’s likely to bring in extra admin work, and it will take some time to get used to, particularly for smaller organisations.

Other potential issues for you to be aware of are possible cashflow problems if immediate payment is needed, particularly if there is a ‘pay when paid’ contract. There’s also the worry of facing financial penalties and inspections if it isn’t implemented correctly, which puts greater pressure on businesses.

Over time though, RTI reporting will become an integral part of an employer’s normal payroll activity – it will just take some getting used to. And, if you start preparing sooner rather than later, it won’t be as much as a shock for you. You should start by looking closely at your payroll processes and systems. Are they able to cope with RTI?

If you currently process payroll in-house, your software will probably need to be upgraded to meet the new requirements, but speak to your software providers about this for some advice. It may also be worth you considering outsourcing, which would take the pressure off of you.

Unfortunately, changes such as this can’t be avoided, but if you start thinking about it now, you’ve got time to weigh up the options – don’t leave it until it’s too late. Over time you’ll see the benefits, but it just takes a little bit of adjustment and planning. And remember that you’re not on your own. You may be a boutique recruiter, but by being part of TEAM you have that support network, so make sure to share any concerns with fellow members. Chances are, they’ll be feeling the same as you!

Liz Longman
www.jobsatteam.com

TEAM - The Employment Agents Movement UK Limited

Registered in England No. 03949265 Registered Office 3 Hillbrow House, Linden Drive, Liss, Hampshire GU33 7RJ