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Like any industry, recruitment has its rotten apples

The Government has been looking at regulating the recruitment industry. But will regulation simply add layers of bureaucracy to the UKs otherwise flexible employment system? Stefan Stern finds opinions differ significantly

David Brownlow, managing director, Huntswood


(recruitment company)


I believe very strongly in licensing for this industry and that there should be a high cost involved to achieve licensed status. There should be a code of conduct attached to it as well. At present you can pay 300 or 400 a year to the Recruitment and Employment Confederation, and get a badge, but it is open to practically anyone. There was a formal licensing structure back in the 70s, but that was abolished by the Conservatives.


I think we should be paying between 20,000 and 40,000 a year for a licence. Does that sound a bit steep? Well, our turnover was around 2 million last year. I just need to make three senior level placements and its paid for.


We are dealing with people and their careers here, not just jobs. You can screw someones life up by putting them in a job that is a cul-de-sac.


A system of regulation that ensured we deliver best practice career advice would help clean up the industry that or a downturn. There are lots of good people in our business, but there are also rotten apples. And if we dont sort it out, something worse will be imposed on us.


Tim Nicholson, chief executive, Recruitment and Employment Confederation


There is already a whole raft of employment regulation that applies to us all as employers. We are also covered by the Employment Agencies Act 1973, which regulates how we advertise. Since May 1999 the Government has been working on updating the act, and we are nearing the end of that process.


There is also the Agency Workers Directive which emerges from the EUs employment and social affairs directorate. There is a draft proposal out for consultation which might impose some very unwelcome rules on us.


So the idea that we are unregulated is a little wide of the mark. And we are conscious of our role in helping to raise standards in the industry. We have lawyers and other experts here to offer professional advice. We have a code of best practice on our website (www.rec.uk.com), but we dont have a team of policemen jumping out of the bushes. We will investigate formal complaints.


We know we do have something of an image problem because of bad behaviour by certain individuals, but I dont think theres anything to be gained by being beastly to members when they have made the commitment to join us.


Paul Wilson, managing director, Michael Page Human Resources


We have no problem with the concept of regulating the recruitment industry. We have a firm belief in the accountability of agencies.


The Government has been looking at regulating the industry but has been a little bit misguided so far. It doesnt really seem to understand the business. And there is a real risk of unintended consequences if it dives in with legislation. Britain has the highest growth rate in a pretty stagnant Europe, and by far the most flexible employment and the highest number of temporary workers. Theres a clear link there. What the Government may see as a problem we see as a benefit.


This is an immensely complex area in that the recruitment industry covers all levels of employment temporary and permanent, from main board directors to security staff. Regulation is something that we might welcome if it is sensible, but it could just add layers of bureaucracy which wont be helpful.