The importance of recruitment compliance

Building, Construction & Infrastructure, Ports, Marine & Aviation, Temporary...


Having been involved the recruitment for over 14 years I have seen the industry change dramatically, with changes in legislation seeming to be a daily occurrence. All of these revisions are however important and something we must embrace. I’m sure as a client it would be nice to think that all “Employment Businesses” offers the same professionalism and compliance to ensure protection to their candidates and clients however we know this isn’t the case.

In Peter Bates' (MD of Scantec) words “agencies reputation are generally seen as the 2nd worst industry, with estate agencies taking the wooden spoon.” I don’t know about you but I have had some good and bad experiences with estate agencies, with the best being a business that markets themselves on being a cut above the rest, independently owned, focused on professionalism and experience in the industry. From the owner to administrator it was obvious that each employee believed in the business and the core values were embedded throughout the business, this along with recommendations and qualifications meant I subsequently purchased the property. This might seem a strange comment to make, but without estate agencies, buying your dream house would be a lot more difficult, potentially leaving you open to huge legal and compliance issues and headaches in the process, and the same can be said for employment business. There is good and bad and not everyone takes compliance as seriously as our organisation. Anyone can get accreditations and client testimonials and on face value, appear compliant & professional but with the Criminal Finance Act, IR35 and the risks associated with hiring, simply evaluating an agency on face value just isn’t enough.

The regulatory changes brought about by GDPR, as well as the technological advances such as artificial intelligence and the fall out from Brexit will only exacerbate the need to place increased emphasis on recruitment compliance. It’s so important to ensure that all agency PSL suppliers not only have experience within the chosen market sector but that their recruitment processes encompass several elements in the recruitment process including background and reference checking, qualification and employment status checks but also have compliant data privacy and security to ensure successful screening and on boarding of new employees

There have been numerous high profile cases recently of candidates falsifying information in order to gain employment. Some of these cases haven’t been identified for decades and only came to light following increased compliance checks. Most recently a Senior Manager within the NHS who was recently jailed for 2 years for falsifying PhD and Masters Degree.

This only highlights the importance of compliant recruitment process, but this isn’t the only consideration when performing a review on your agency PSL arrangement. Supply chain confidence is essential for any business and that’s the same for ourselves – As the prospect of being held liable for a failure by those further down the supply chain increases, the financial risk of non compliance with legislation – and the possibility of being held criminally liable grows – We think it's critical that not only our clients undertake due diligence on the whole supply chain, but it’s important that we as a business thoroughly review our supply chain including payroll partners. In December 2017 Scantec became the 1st employment business to become FCSA accredited; We have been working closely with the FCSA to develop the initiative, which enables our partners to demonstrate compliance within the Modern Slavery Act, the GDPR and many other industry-wide regulations. We work with the FCSA continually to ensure the code of conduct is updated and revised to make sure all accredited members are operating compliantly within new legislation. That way we keep up to date with the many changes that keep on coming – so our clients don’t have to!”

Remember it’s not all bad out there… if you follow the simple guidelines and fully evaluate each business there is no reason why you won’t find a compliant and ethical recruitment agency, enabling you to create a partnership which in turn will help you find the best talent for your business. If you would like to talk more about Scantec’s specialist service then please don’t hesitate to contact me.