Exclusive analysis: Cameron’s reshuffle is opportunity for recruitment industry

It was a case of in with the new and out with old as Prime Minister David Cameron reshuffled his government on Tuesday.
Thu, 6 Sep 2012
It was a case of in with the new and out with old as Prime Minister David Cameron reshuffled his government on Tuesday.

Speaking at Prime Minister’s Questions yesterday, David Cameron told the House of Commons: "This is a government that means business. We have got the team to deliver it." However, opposition leader Ed Milliband retorted: “It is the same old faces, the same old policies, a no-change reshuffle."Several of the ministers who lost out in the reshuffle were reportedly in tears, but will it be a case of tears or cheers for the recruitment industry?

As far as those who lobby government on behalf of the recruitment industry are concerned, the key government departments are DWP (Department for Work and Pensions) and BIS (Department for Business, Innovation and Skills).

DWP
  • No change - Iain Duncan Smith, secretary of state
  • In - Mark Hoban, minister of state for employment
  • In - Esther McVey, minister for disabled people
  • Out - Chris Grayling, minister of state

Reports suggest that Iain Duncan Smith defied the wishes of the prime minister who wanted to move him elsewhere. Duncan Smith is reportedly determined to see through his reforms of the welfare system.

BIS
  • No change - Vince Cable, business secretary
  • In - Michael Fallon, minister of state
  • In - Jo Swinson, minister for employment relations

Vince Cable retained his position despite pressure from the right of the Conservative Party and from some in business, who argue that he is not sufficiently business friendly. Other appointments were Michael Fallon, who has a reputation for being ‘pro business’ and new minister for employment relations Jo Swinson.

Marilyn Davidson, director of APSCo (Association of Professional Staffing Companies) questioned the thinking behind the reshuffle. Davidson told Recruiter: “The fact that most of the Conservative ‘big hitters’ have remained in their posts and the Liberal Democrat members of the cabinet have not been moved, suggests that the reshuffle has been more about internal Conservative Party politics than revitalising government policy.”

However, she says APSCo is “very much looking to working with” new minister for employment relations, Jo Swinson.

“It is good news for the recruitment sector to have such a vibrant, up and coming, minister in the post and we look forward to seeing her impressive reputation as campaigning MP in action.”

Adrian Marlowe, chairman of ARC (The Association of Recruitment Consultancies) emphasises the importance of getting the right legislative framework to boost economic recovery and create jobs. In particular, he points to the need for the government to get on with a proper review of the Agency Workers Regulations.  “We hope that the appointments made in the reshuffle will help towards this end.”

Tom Hadley, director of policy and professional services at the Recruitment and Employment Confederation (REC) tells Recruiter there were “positive and negative” aspects to the reshuffle.

While the introduction of new ministers is an opportunity to build new relationships, raise their awareness and understanding of the industry, “the downside is that we have to start again” with a new set of ministers, he says.

However, on the positive side, Hadley says: “The direction of travel seems to be towards growth and jobs, which is good for our industry.”

Hadley adds: “Because of the economic climate, there will be pressure on BIS to deliver business friendly measures.”

And he expresses confidence that business secretary Vince Cable recognises this and will play his part.  “I think we will see a more positive outcome,” he says.

Hadley says he hopes the reshuffle will give fresh impetus to the trade association’s efforts to influence the agenda, particularly around tax, IR35 and the ‘controlling persons’ legislation, which have important repercussions particularly for high earning contractors.  “There is an opportunity to help government to avoid knee-jerk reactions,” says Hadley.

Similarly, he hopes the reshuffle will revive efforts begun but not completed with previous minister of state at the DWP Chris Grayling to promote the role that recruiters can play in providing support and guidance to jobseekers.

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