Running out of cash

A third of UK recruiters are making a loss, according to new research from market analysts Plimsoll. David Pattison, senior analyst and author of the new ’Plimsoll Industry Analysis - Recruitment Agencies’, explains the growing problem in the market: “Whether it’s fuel, materials or wage demands every company in the UK recruitment agencies industry is being squeezed by ever increasing costs. Over the past two years the average profit margin in the UK recruitment agencies industry has fallen to 2%. More worryingly, 298 companies are losing money with 135 of these doing so for the second year running. These companies face a tough decision - protect their marketshare and continue to lose money or adjust their prices to reflect their increased costs. Without refocusing on the bottom line, many of these companies will simply run out of cash.”

Bribery guidance

The government has announced six new principles in its guidance on the Bribery Act, due to come into force on 1 July. The government says the Act aims to ensure the UK can clampdown on corruption without being burdensome to business. For example, ensuring anti-bribery procedures are proportionate to the bribery risks firms face and to the nature, scale and complexity of its activities. Jusstice secretary Kenneth Clarke says: “I have listened carefully to business representatives to ensure the Bribery Act is implemented fully and in a workable, common sense way - this is particularly important for small firms that have limited resources. I hope this guidance shows that combating the risks of bribery is largely about common sense, not burdensome procedures.” www.justice.gov.uk/guidance/docs/bribery-act-2010-guidance.pdf

Made in Britain?

The government’s cap of 1,000 visas for Tier 1 (General) highly skilled migrant workers visa has the potential to make it very difficult for UK employers to hire top talent, according to John Hayes, a partner at law firm Irwin Mitchell. Earlier this month, Damian Green, the Conservative immigration minister, announced a replacement for the Tier 1 (General) highly skilled migrant workers visa that was suspended late last year. The new visa tier will operate within the Points Based System of immigration control from 6 April. Hayes says: “This cap of 1,000 visas could potentially make it very difficult for highly skilled migrant workers to obtain a visa to enter the UK to work. The limit is likely to be seen as an arbitrary number by employers and as a real barrier to recruiting the workers that employers want. Our clients already see the cap as a huge practical problem.”

Smith is new REC chair

The Recruitment & Employment Confederation Council has appointed Neil Smith, managing director of manufacturing and engineering recruiter Kinetic, as its new chairman. Smith has been a member of the REC’s governing body since 2006 and has held the positions of vice chair and finance committee chair.