As the government has announced its Industrial Strategy, representatives from the recruitment industry’s leading organisations have given their view on the chosen course. Shazia Imtiaz, General Counsel at the Association of Professional Staffing Companies (APSCo) said it was encouraging to see the government considering close collaboration with those most impacted – particularly recruitment businesses and employers. “Throughout the strategy, there are clear plans for Skills England to work closely with industry and employer representatives, which demonstrates that they are listening to businesses,” she said.
While the focus on international business was also welcome Imtiaz noted: “It is crucial that the focus is more equally balanced on imports as well as exports. The current strategy is heavily weighted in the favour of exporting services overseas, which will boost business growth, but the ability to import skills and services is equally as important given the skills shortages currently being felt.” APSCo expect more detail to be published in the Trade Strategy later this year, but for now, the organisation is pleased that the government has taken on board their recommendations to review visa systems and ensure they support high-growth sectors and attract talented individuals to the UK.
However, while the strategy for the professional and business services sector has a clear theme of boosting the abilities of the domestic workforce, APSCo are still worried by what it calls “a level of inflexibility” that needs to be addressed. “The continuation of Level 7 apprenticeships for young people under the Growth and Skills Levy will have longer-term impacts, but we remain of the view that the diverse make-up of today’s workforce requires more flexibility around this,” says Imtiaz. “As such, we will continue to work with representatives to evolve these Levy funds to allow for the upskilling of mid-career lane movers, those in the temporary or contract workforce and retirement returnees.
APSCo also noted the details in the Industrial Strategy today indicate further compliance changes are in store for the staffing supply chain. “With HM Treasury already focusing on umbrella reforms, it’s perhaps no surprise to note the plans for a package of changes to money laundering regulations (MLRs),” says Imtiaz. “While this may place greater demands on recruiters, employers and umbrella companies, we welcome any steps that promote compliance and raise standards across the sector.”
Meanwhile Recruitment and Employment Confederation (REC) Chief Executive Neil Carberry said the Industrial Strategy was an important chance to make progress on this over the long term, forming a new partnership between business and government. “The test now is whether the strategy can be delivered, not just by the Department for Business, but at the core of all government policy.
Carberry was also upbeat about the inclusion of Professional and Business Services, including recruitment and talent firms, in the government’s industrial policy. “The sector is a UK domestic and exporting powerhouse, but one which needs to adapt to the challenge of both new technology and rising competition,” he said. “Recruitment and staffing alone is worth £44bn per annum to our economy – and like other sectors, is included because it helps drive the whole economy. From infrastructure to food on the shelves, talent firms help every sector thrive. The REC’s role on the Sector Council is one we will use to make sure this plan – which the Council has worked hard on – is transformational.”
Acknowledging the choices facing the government, Carberry said the government’s announcements suggest workforce issues still need more attention, especially since skills were not at the heart of the recent Spending Review. However he also said taking on workforce questions was the right way to tackle the systemic problems of lagging productivity, lack of skills provision and low confidence. “If we address workforce needs, we can unlock £39bn every year of growth by giving companies access to the people and skills they need to build and grow,” he said. “We will be pressing government to go further on this in both the Industrial Strategy and the Growth Plan.”
