Recruitment social enterprise makes work experience a full-time solution
FROM AUGUST 2015'S RECRUITER MAGAZINE
Sometimes both client and recruiter recognise a candidate’s potential but the candidate fails at interview because of a lack of sector-relevant work experience. So how do recruiters tackle this problem?
For Colin Woodward, director at construction staffing specialist Contract Scotland, the solution has been to set up his own social enterprise.
Back in 2012, inspired by a talk given by social enterprise leader Muhammad Yunus on the merits of such enterprises, Woodward went away to think about ways he could launch one that fit the world of recruitment.
The goal of a social enterprise is to act as a business that trades to tackle social problems, improve communities, people’s life chances or the environment, and generate money from selling goods and services in the open market. Any profits are then reinvested into the business or local community.
Given this aim, Woodward identified a group he could help with a social enterprise that suited his for-profit business. That group comprised candidates that lack the necessary work experience to land a job.
“It’s about trying to help people understand what the shortcomings are in their CV that prevents them going from sending a CV to actually getting a job,” Woodward says, explaining the concept of his social enterprise.
“If they’re out of work, we’re looking to give them the work experience that will enable them to be of some use in the future,” he adds.
Typical candidates, according to Woodward, would be fresh graduates yet to gain any work experience — construction graduates that ended up working outside the sector and therefore don't have relevant experience — or foreign graduates with no experience of working in the UK.
And while clients are not under any pressure to take on candidates permanently, under Woodward’s social enterprise an introductory fee of £750 is charged if a client takes on a candidate from a placement into a permanent job. The fee helps pay for the operational costs of the running of the social enterprise.
Since the enterprise’s January launch, two candidates have turned a placement to a permanent job, including a quantity surveyor graduate who was working in events but wanted to get back into construction.
Under the social enterprise the candidate was placed with Forth Electrical Services (FES) and after a few weeks working there was offered a full-time job, which he then accepted.
But Woodward is keen to point out the secret to the success of his social enterprise has been to ensure that every candidate gets the most out of their placement, such as getting work in their preferred discipline. This is achieved through a meeting between candidate and client where they discuss what exactly the candidate would like to gain on their placement before it takes place.
Woodward says he advises candidates: “Tell them [the client] what you want to learn, and then if they can give you that opportunity then you can agree to start on an unpaid basis and what the terms would be, how many days a week and how long you are prepared to commit to it based on the stage they are at the moment.”
That conversation is key, as recruiters need to keep track of how many hours people on placements work, Woodward adds.
“You need to be aware of how many hours somebody can work if they’re claiming jobseekers’ allowance because if someone is working more than 15 hours then they wouldn’t be able to claim jobseekers’ allowance.
“Some people are working, some aren’t working, some are in quite reasonable jobs and some are stacking shelves in Tesco or running call centres.
“You’ve got to be flexible according to what the candidate is currently doing and ultimately help them achieve what they want to do.”
Woodward says his social enterprise model can work for any agency.
“I don’t see any sector barriers. What you’re looking for really are the candidates that aren’t able to find themselves sustainable employment, and you’re looking for the clients that would give them the opportunity if the opportunity didn’t involve paying them money to do it.
“Once you’ve got those two together, you’ve got the opportunity to be able to work with candidates who otherwise you wouldn’t necessarily find a job for and also enhance the relationship with the client because you are seen to be putting something back and you’re seen to be helping those less fortunate than yourself.”
And there are other advantages for recruiters in setting up a social enterprise other than addressing sector skills shortages, Woodward says.
“If they remember we were the ones that got them the job in the first place, then when they come to look for their next job, they’ll think of getting in touch with us to find the next opportunity. And if it means that, hopefully we are best placed to work with them going forward.”
Tips for setting up a social enterprise
- Funding options include grants from initiatives including the Big Lottery Fund and various trusts and foundations, debt or equity finance or community finance provided by community development finance institutions (CDFIs) and credit unions. However, you don’t need to seek external funding to launch your social enterprise — recruiters can self-fund
- Fees from permanent placements made can
- Don’t pressure clients into making placements permanent but be proactive in persuading them to work with you
- Identify clients most receptive to working with your social enterprise
- Stay in touch with candidates you helped gain work experience — they may remember your help further down the line and want you to find their next role
- Be patient when persuading candidates to take on job shadowing — these are candidates new to the job market so they may have unrealistic expectations
- Ensure candidates and clients speak to one another so candidates take the right work experience from their placement
- Social enterprises can work for any recruiter and in any sector
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