AWR a boon for business

AWR a boon for business

The recent article “Temp Reduction Warning” is clearly a cause for concern. But should the industry be fearful, asks Ben Grover, External Policy Adviser to the Association of Recruitment Consultancies.

Advocating that a positive outlook will achieve better results, Grover commented “Whilst Nigel Toon, speaking for Allied Milling, intimated that there may be layoffs of agency workers because additional costs would be unacceptable if current levels of temps are retained, I wonder whether he has really considered all the options. One for example would be to change policy to review and set start rates for new recruits taking into account current market forces. These may not be so different from the rate currently payable to the temp, and if the agency can hire someone at that rate then the employer should be able to also. Surely doing this is preferable to putting temps out of work?”

Referring to the suggested differences affecting larger businesses and SMEs, Grover continued “I don’t think the issue is one that can simply be answered by saying that SMEs may not be affected whilst larger organisations may be. Whilst of course there is a distinction in scale, the real answer is for all hirers, particularly the bigger players, to open their eyes to the realities. After all laying off temps must mean either the work does not get done or you have to replace with employees, losing flexibility and picking up tax obligations and employment rights in the process.”

“The result from a more determined approach to retain the status quo would be that the temps retain their work and business can continue as normal. Our members would support and facilitate this. These regulations, whilst seen as a major threat by some and certainly unwelcome to many businesses, may turn out yet to be a boon for big business but only if they grasp the nettle properly. Recruitment consultancies have a unique opportunity to work closely with hirers to achieve the right outcome for everyone.”