REC fee hikes come under fire

A group of recruiters has criticised the Recruitment & Employment Confederation (REC) for “its complete lack of empathy” in raising its fees at a time when many of its members are going through

A group of recruiters has criticised the Recruitment & Employment Confederation (REC) for “its complete lack of empathy” in raising its fees at a time when many of its members are going through difficult times.

The REC raised its corporate fees for 2011 by 5%. Fees are based on turnover. Members with a turnover up to £1m now pay £776 excluding VAT, compared with £739 in 2010. Fees for firms in the £10m-£15m rise to £4,726 from £4,501, while those in the £100m+ bracket have seen their fees rise from £18,008 to £18,908.

Jeanette Robinson, managing director of Cavill Robinson Financial Recruitment, and group spokesperson, told Recruiter: “It doesn’t seem a lot but it’s been a very tough two years for recruiters, and when recruiters are struggling, every penny counts, especially for small recruiters.”

Robinson’s comments came after the launch of the group’s Manifesto for Progress in November. The manifesto states: “We believe that the REC has reached a tipping point and that any further increases will see a decline in membership.” It asked that there should be no increase in corporate fees for three years.

Kevin Green, REC chief executive, defended the rises which are “broadly in line with the increase in the REC’s costs”. Green added that the decision to raise fees was taken by the REC Council. He described the REC’s current renewal rate as of last week of 68% as “fantastic”.

In a written response, REC chair Angela Masters said the alternative would have been to radically reduce services, and that fees remained “very competitive” versus other trade associations.

The signatories to the manifesto are Anita Pepper-Rowlands, director PR Recruitment & Training; Jeanette Robinson, managing director Cavill Robinson Financial Recruitment and a former REC board member; Barry Smith, Law Consultants; Martin Smith, managing director CAMCO Corporate Services; Ray Ellis, director James Rushmore; and Phil Harmsworth, director ESP Personnel.

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