REC to begin informal conversations about possible merger
17 June 2013
A merger of the Recruitment & Employment Confederation (REC) with another body representing the recruitment industry could be on the agenda following comments made by its chief executive officer Kevin Green (pictured, speaking at an REC event in 2012).
Mon, 17 June 2013A merger of the Recruitment & Employment Confederation (REC) with another body representing the recruitment industry could be on the agenda following comments made by its chief executive officer Kevin Green (pictured right, speaking at an REC event in 2012).
In response to a question at last week’s AGM, which also saw the election of new council members, Green said the REC would “this year” start “informal conversations” with and take “informal soundings” from other trade bodies.
“Merging has got to be on the agenda. If you have got a maturing marketplace and a range of bodies in that marketplace, it would be disservice not to have that conversation,” said Green.
“It’s got to work for both parties and be beneficial to the industry but we will certainly start conversations,” he added.
So far, however, the response from other bodies representing the recruitment industry has been mixed.
Following the AGM, Green told Recruiter there were “lots of organisations that the REC would ideally like to talk to” but that “the obvious ones” were the Association of Professional Staffing Companies (APSCo), the Association of Labour Providers (ALP) the Association of Recruitment Consultancies (ARC) and the Institute of Recruiters (IOR).
Green said a merger had the potential “to strengthen the voice of the industry” but that the rationale was “more about providing more value to members”.
“At the moment we have a lot of organisations duplicating services,” he added.
He acknowledged that a merger would be “quite difficult to pull off” and that history, different brands and personalities would pose significant challenges. However, he added: “These shouldn’t stop us doing it.”
Ann Swain, CEO of APSCo, tells Recruiter that she is “kind of surprised” by Green’s comments. She agrees that there is some duplication of services by different industry bodies. However, she adds: “I think that recruitment organisations make a choice about which trade body will provide them with the quality of service that they want, and that it is good to have choice and competition.
“I would welcome consolidation but historically the REC hasn’t proven to be very collaborative,” Swain continues. “Our door is always open if Kevin wants to speak.”
Azmat Mohammed, director general of the IOR, tells Recruiter: “I am quite surprised to hear that the REC would make such a public statement of intent.
“I see no requirement for the IOR to do anything other than to stay on its current course which will deliver rapid growth and chartered status.
“It is my job to ensure it stays focused and is not pulled needlessly in any other direction.”
Kevin Roberts, chairman of ALP, says the organisation wouldn’t rule out “any sensible consolidation within the sector”, but adds: “Maybe not at this particular point in time.”
Roberts acknowledges the need for effective representation of the industry to have a “reasonable critical mass”. Growth can come either organically or through consolidation, he says, adding that ALP’s executive committee has asked him to look at this and report back to them in September.
Adrian Marlowe, chairman of ARC, tells Recruiter that Green’s comments were “news to me”. “We would be willing to discuss any proposition that results in an improvement for the recruitment industry as a whole,” says Marlowe. However, he adds that “part of the problem” with any potential merger is the REC’s previous “unwillingness to have discussions with us”.
In response to a question at last week’s AGM, which also saw the election of new council members, Green said the REC would “this year” start “informal conversations” with and take “informal soundings” from other trade bodies.
“Merging has got to be on the agenda. If you have got a maturing marketplace and a range of bodies in that marketplace, it would be disservice not to have that conversation,” said Green.
“It’s got to work for both parties and be beneficial to the industry but we will certainly start conversations,” he added.
So far, however, the response from other bodies representing the recruitment industry has been mixed.
Following the AGM, Green told Recruiter there were “lots of organisations that the REC would ideally like to talk to” but that “the obvious ones” were the Association of Professional Staffing Companies (APSCo), the Association of Labour Providers (ALP) the Association of Recruitment Consultancies (ARC) and the Institute of Recruiters (IOR).
Green said a merger had the potential “to strengthen the voice of the industry” but that the rationale was “more about providing more value to members”.
“At the moment we have a lot of organisations duplicating services,” he added.
He acknowledged that a merger would be “quite difficult to pull off” and that history, different brands and personalities would pose significant challenges. However, he added: “These shouldn’t stop us doing it.”
Ann Swain, CEO of APSCo, tells Recruiter that she is “kind of surprised” by Green’s comments. She agrees that there is some duplication of services by different industry bodies. However, she adds: “I think that recruitment organisations make a choice about which trade body will provide them with the quality of service that they want, and that it is good to have choice and competition.
“I would welcome consolidation but historically the REC hasn’t proven to be very collaborative,” Swain continues. “Our door is always open if Kevin wants to speak.”
Azmat Mohammed, director general of the IOR, tells Recruiter: “I am quite surprised to hear that the REC would make such a public statement of intent.
“I see no requirement for the IOR to do anything other than to stay on its current course which will deliver rapid growth and chartered status.
“It is my job to ensure it stays focused and is not pulled needlessly in any other direction.”
Kevin Roberts, chairman of ALP, says the organisation wouldn’t rule out “any sensible consolidation within the sector”, but adds: “Maybe not at this particular point in time.”
Roberts acknowledges the need for effective representation of the industry to have a “reasonable critical mass”. Growth can come either organically or through consolidation, he says, adding that ALP’s executive committee has asked him to look at this and report back to them in September.
Adrian Marlowe, chairman of ARC, tells Recruiter that Green’s comments were “news to me”. “We would be willing to discuss any proposition that results in an improvement for the recruitment industry as a whole,” says Marlowe. However, he adds that “part of the problem” with any potential merger is the REC’s previous “unwillingness to have discussions with us”.
