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Revenue & Customs Brief

HMRC has issued Revenue & Customs Brief 32/11 to explain its policy following the First-tier Tribunal (FTT) decision in the case of Reed Employment Limited TC01069. The Tribunal held that in providing temporary staff to its clients Reed was supplying introductory services rather than making supplies of staff. Accordingly the company was only liable to account for VAT on the commission element of its charge and not on the overall amount paid by the client, which included the wages paid to the temp and associated National Insurance contributions.

Agency Workers Regulations and the retail sector

Retail usage of temporary labour has increased by 20.05% in July; an indication that businesses in this sector are trying to cut costs through a flexible workforce with no long-term commitment.

The Business Distress Index indicates 48% of retailers have experienced a fall of sales, with 40% concerned about their debt levels.

The industry is clearly struggling and shows no sign of recovering, as consumers reduce their spending.

Agency Workers Regulations and the waste industry

Whilst many industries are reducing their employee levels, the Waste Management sector is increasing in size. The Chartered Institute of Waste Management (CIWM) anticipates an increase of 35% of the workforce to 50,000 employees by 2020, a clear signal that the sector is growing.

The industry looks positive in terms of expansion, with an increase in demand for recycling and energy from waste facilities.

Agency Workers Regulations and the logistics sector

The Logistics sector is expected to face a global skills shortage, with many employees not seeing logistics as an industry of choice.

The UK Warehousing Association (UKWA) has warned that investment is needed in the sector, as not enough is being spent on the future generation of workers.

de Poel's temporary labour stats in the press

de Poel's press release highlighting the rapid growth in the temporary labour market has received press coverage.

Our stats show that the use of temporary agency labour in the UK is continuing to increase. In July, businesses increased its reliance on temporary staff by 21% compared to the same period last year.

Agency Workers Regulations and facilities management

Increasingly tight budgets have led the demand for facilities outsourcing to grow, a healthy factor for the industry. Companies want to cut costs and therefore focus on core activities whilst engaging with Facilities Management organisations for their outsourcing operations.

There are however mixed messages for the industry. With public sector investment decreasing, the tendering rate has slowed with the number of new contracts diminishing.

Agency Workers Regulations and the construction industry

Construction is another sector that’s struggling financially, especially in the public sector.

Noble Francis, Economics Director at the Construction Products Association, stated ‘Construction activity fell in most sectors during the second quarter, with only a small rise in private commercial activity preventing even sharper falls.

Agency Workers Regulations and the care industry

The care industry is another struggling sector, with key organisations such as Southern Cross already collapsed. Care is an industry based on the quality and stability of service but some argue that the financial pressure on these organisations is having an increasingly negative influence.

Agency Workers Regulations and business services

The Business Services industry paints a less gloomy picture than most sectors, with reported gains within the industry.

The Chartered Institute of Purchasing and Supply (CIPS) stated:  “Business Services and IT & Computing registered the steepest gains in activity.

Rapid growth continues in temporary labour market

However, care sector continues to shows a dramatic drop in the reliance of temporary agency labour

 Use of temporary agency labour in the UK is continuing to increase, reveals new data from de Poel, the number one procurer of temporary agency labour. In July, businesses increased its reliance on temporary staff by 21% compared to the same period last year.

Stratagems Summer 2011

Stratagems covers a wide spectrum of topics, including employment, recruitment, trends, forecasts, hot topics and of course news from de Poel, please feel free to download your copy below.  If, however you would like our printed version please email Shaun Dempsey, sdempsey@depoel.co.uk.

Use of temporary agency labour rose in June

de Poel's monthly temporary labour statistics for June saw a year on year increase of 18%.

Some sectors have doubled their use of temps in the first half of the year, in contrast the care sector's use has fallen in 2011.

AWR: Managing the 12-week qualifying period

The 12-week qualifying period is key to the Agency Workers Regulations and with just a few weeks left until their implementation it’s crucial that businesses have the right tools in place.

There are many factors that affect the qualifying period that can make it very difficult to track. It does not necessarily refer to 12 weeks of work; therefore a temporary agency worker could work one day per week over a 12-week period and still qualify under the Agency Workers Regulations.

de Poel staff numbers continue to rise

de Poel increased its staff numbers by over 50% in the last 12 months, giving a welcome boost to the local economy’s employment levels and providing further proof that the UK’s  number one procurer of temporary agency labour continues to grow at a substantial rate.

In the last month alone the company has seen seven new additions, with the marketing, support and operations departments being the current beneficiaries of de Poel’s long term prosperity.

Taking control of temporary agency labour spend

Managing temporary agency labour spend is never easy.  Indirect costs need to be considered along with those of a direct nature when gathering marketplace spend data.  Implementing effective recruitment agency management strategies is paramount in an economy that is still struggling with recession and sustainability issues to prevent even further businesses going into administration.

Key steps to managing agency labour supply

Recruitment agencies are responsible for selecting and providing temporary agency workers that are the most appropriate candidates for the job.  

Organisations need to involve all relevant departments when determining which recruitment agencies will appear on their panel list of preferred agencies rather than the head office being the sole decision maker.  Detailed input from operations, procurement, finance and HR will all need to be obtained when considering which agencies are best placed to supply agency labour.

The importance of recruitment agency management

The recruitment industry is both highly fragmented and unregulated, this means temporary agency workers are provided by multiple agencies with varying business terms and quality standards across numerous locations.  Successful recruitment agency management is essential for organisations using temporary agency labour.  Inefficient management of recruitment agencies can result in poor quality spend, legal exposure and limited control over ongoing agency performance.

Margins and rate standardisation made easy

Market-driven pay averages for specific jobs are an essential element for consideration when it comes to recruitment agency management.  The job-specific margins, like the pay rate, will also need to be balanced in relation to industry trends. A margin that is too low will invite poor quality suppliers, whilst a margin that is too high is likely to attract the more unscrupulous agencies.

Adhering to legal temp requirements

An essential component of managing temporary agen­cy recruitment spend boils down to keeping on top of incoming legislation when outsourcing recruitment. de Poel helps set up the implementation of the formal terms and manage the relationships between businesses and their suppliers.  Adhering to legal requirements can only be achieved through the development of a two-way communication process which clarifies employer and agency responsibilities.

Effective recruitment agency management

As businesses strive to become leaner and fitter, more and more emphasis is being placed on recruitment agency management. Site specific operations, skill-set requirements, market and geographical dynamics are just some of the many elements to consider during the management of recruitment agencies. de Poel empowers organisations with where, how and why workers are being allocated, resulting in maximised existing resource and operational effectiveness as well efficient future budgeting.

Managing temporary agency labour spend efficiently

Many firms are unaware as to what they are spending on temporary agency labour, where it is being allocated or how costs are being calculated.  de Poel allow businesses of all sizes to analyse and manage temporary agency labour spend through the revelation of visibility and con­trol of costs at all levels.

Large firm temporary agency worker solutions

With the implementation date of the Agency Workers Regulations looming, legal compliance is now under the spotlight more than ever.  de Poel can prevent firms from leaving themselves exposed to litigation by working together with supplying agencies and the users of temporary agency labour to adhere to employ­ment laws.

de Poel works with business to ensure that temporary agency labour costs are managed efficiently and not overlooked to ensure effective overall spend which results in direct cost savings of between 6% and 12%.

The future's looking bright for small firms

A survey has revealed that an ever increasing amount of small firms are now looking to recruit.  This is the first time in two years, that the number firms that can now be positive about the future outweighs the number planning to make lay-offs.  23% plan to take on temporary workers this summer and 15% intend to hire permanent staff.  Only 3% of small firms now are planning to make redundancies which is a 19% improvement in comparison to the same findings in 2009.


Temporary agency labour solutions for large firms

de Poel also cater for large firms who use a large amount of temporary agency workers to supplement their work­force in response to seasonal and market shifts. Despite regularly planning for taking on extra staff to cope with increased demand firms still incur extra avoidable costs through additional administration, legal compliance and supplier performance costs.

EFD MegaQuiz proved to be an unforgettable experience

de Poel sponsored the Employers Forum on Disability MegaQuiz.  The three hour event took place at the exquisite grandeur of the Ironmonger’s Hall in London. 

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