The biggest problem facing the Recruitment and Employment Confederation (REC) is its members' "badge mentality" coupled with a failure to participate, the trade body's departing managing director said in his last interview with Recruiter before leaving office.

Gareth Osborne says members don't understand the thousands of pounds worth of services, such as legal advice, they are eligible to receive for an average membership fee of £700 a year.

"Unashamedly, the majority of people join a trade association for an endorsement, for a badge. I call it the badge mentality. They have a sticker on the window, and then they don't participate beyond that. And I have to say that for the £700 average membership, it's the cheapest endorsement you can get. And that's the biggest problem the REC has to get over."

He said he would not have joined the organisation as a member when he took on his position in January 2003 because he felt it offered little value. "Now I can't see any reason why any business, particularly early-stage start-ups, shouldn't join."

"The journey ahead is not about creating the value -- I've done that -- it's now getting people to understand the value," he said. The REC has 8,000 individual and 7,000 corporate members.

Osborne said now was "a logical time" to move on. He leaves after three-and-a-half years in the job, for which he is said to have earned about £160,000 a year. "I'm an entrepreneur; an innovator. I love business growth and turnaround — and there comes a time when people like me, in reality, run out of usefulness."

At such a point in time, he added, "you only become mischievous as an entrepreneur or innovator, or you look for other challenges". He said he was restricted in what he could say about future plans, but that taking on a non-executive directorship was one option.

Acting chief executive Marcia Roberts said of Osborne: "He brought to the REC a thorough understanding of, and a passion for, small business. He also brought a strategic vision for a trade association to lead, rather than follow its members."

 

SEARCHING FOR A SUCCESSOR The REC board hopes to have a new chief executive in place by the end of the year, says acting chief executive Marcia Roberts. She told Recruiter that, as she understands the board's plans, a tender process will be put in place (possibly in September) to select a company to conduct a search for Gareth Osborne's successor.