1. Recruitment and Employment Confederation Employers Tracking Study: Summary 2011 Quarter three – December 2011 Prepared by Market Shape Ltd Cordoba Services

2. December 2011– Page 2 1. Economic and trading situation 2. The workforce 3. Talent management 4. Management of temporary workers 5. Agency selection 6. Agency assessment 7. Agency Workers Directive (NOTE: new questions featured here) 8. Current Issues Contents

3. December 2011– Page 3 1. Economic and trading situation – background The rate of increase in claimant numbers has slowed significantly

4. December 2011– Page 4 1. Economic and trading situation – background Use of temporary staff continues to decline slowly

5. December 2011– Page 5 1. Economic and trading situation – background Consumer Confidence is at an all-time low according to Gfk NOP "The two point drop in the index this month means consumer confidence is now at its lowest ebb in almost three years. In fact, in the 37 years the index has been running it has only been lower on two occasions – a single month in 1990, and eight months during the 2008-2009 recession. "Optimism has not been lifted by pre- Christmas spending and it is hard to see grounds for a recovery in confidence in the near future. The eight per cent drop in the score for the general economic situation over the next 12 months is significant and will make chilling reading for the Government and British businesses.” Nick Moon, Managing Director, GfK NOP Social Research

6. December 2011– Page 6 1. Economic and trading situation – background Lloyds Bank notes that “As this indicator leads quarterly GDP growth by 3-4 months, it suggests that economic activity will progressively weaken during the first quarter and the start of the second quarter of 2012”

7. December 2011– Page 7 1. Economic and trading situation What do you see as the most important challenge facing your organisation in the next 2 – 3 years? Base: All respondents, single response Percentage of respondents

8. December 2011– Page 8 1. Economic and trading situation Have you made any of the following changes to your workforce in the past year? Base: Respondents who have been affected a bit or much more by economic changes, multiple response Percentage of respondents

9. December 2011– Page 9 Have you made any of the following changes to your workforce in the past year? 1. Economic and trading situation

10. December 2011– Page 10 1. Economic and trading situation How much capacity is there in your business to take on more work without creating more jobs? Base: Respondents who have been affected a bit or much more by economic changes, multiple response Percentage of respondents

11. December 2011– Page 11 1. Economic and trading situation To what extent have your total workforce costs increased over the past 12 months? Base: Respondents who have been affected a bit or much more by economic changes, multiple response Percentage of respondents

12. December 2011– Page 12 1. Economic and trading situation When do you expect to see conditions improve for your organisation? Base: All respondents, single response Percentage of respondents

13. December 2011– Page 13 * The Confidence Barometer is calculated from the responses to the following questions: –When do you expect to see conditions improve for your organisation? –In the next 3 months, and 4 to 12 months, do you think that your organisation’s use of agency workers will increase or decrease? –In the next 3 months, and 4 to 12 months, do you think that your organisation’s use of permanent workers will increase or decrease? Serious problems -50 -40 -30 -20 -10 Neither better or worse 0 10 20 30 40 Growing prosperity 50 1. Confidence barometer Base: All respondents The REC Employers Confidence Barometer lifted 3 points in October, suggesting greater confidence in the ability to maintain employment levels December 2011 = 24

14. December 2011– Page 14 2. The workforce In the next three months, do you think that your organisation’s use of permanent and agency workers will increase or decrease? Base: All respondents, single response Percentage of respondents

15. December 2011– Page 15 2. The workforce In the next four to twelve months, do you think that your organisation’s total workforce will increase or decrease? Base: All respondents, single response Percentage of respondents

16. December 2011– Page 16 2. The workforce In the next three months, do you think that your organisation’s use of agency workers will increase or decrease in these functions? Base: Respondents who use agencies, multiple response How will your temporary workforce change in the next three months?

17. December 2011– Page 17 2. The workforce In the next four to twelve months, do you think that your organisation’s use of agency workers will increase or decrease in these functions? Base: Respondents who use agencies, multiple response How will your temporary workforce change in the next twelve months?

18. December 2011– Page 18 2. The workforce In the next three months, do you think that your organisation’s use of permanent staff will increase or decrease in these functions? Base: Respondents who use agencies, multiple response How will your permanent workforce change in the next three months?

19. December 2011– Page 19 2. The workforce In the next four to twelve months, do you think that your organisation’s use of permanent staff will increase or decrease in these functions? Base: Respondents who use agencies, multiple response How will your permanent workforce change in the next twelve months?

20. December 2011– Page 20 2. The workforce What proportion of your temporary staff transfers to become permanent members of your workforce? Temp to perm transfer scores NOTE: The transfer score is based on estimated numbers of people transferring, weighted by organisation size in employee numbers

21. December 2011– Page 21 2. The workforce In the past 6 months, how many people have you recruited? Base: All respondents Percentage of respondents

22. December 2011– Page 22 3. Talent management In which job functions have you used agency workers during the past year? (Top ten functions) Base: Respondents who use agencies, multiple response Percentage of respondents

23. December 2011– Page 23 3. Talent management In which areas do you expect to find a shortage of appropriate candidates this year? (Top functions) Base: Respondents who use agencies, multiple response Percentage of respondents

24. December 2011– Page 24 4. Management of temporary workers How important would you say that agency workers are for your organisation in terms of the following? Base: Respondents who use agencies, single response not at all important (1) (5) very important

25. December 2011– Page 25 4. Management of temporary workers In terms of agency workers pay rates, would you say that…? Base: Respondents who use agencies, single response Percentage of respondents

26. December 2011– Page 26 4. Management of temporary workers Which one of the following actions would you take if you couldn’t use agencies to provide temporary workers? Base: Respondents who use agencies, single response Percentage of respondents

27. December 2011– Page 27 5. Agency selection / Recruitment channels used How do you recruit temporary workers? (Top 10 ways) Base: Respondents who use agencies, multiple response Percentage of respondents

28. December 2011– Page 28 5. Agency selection / Recruitment channels used How did you / does your organisation decide to use agencies? (Top 10 ways) Base: Respondents who use agencies, multiple response Percentage of respondents

29. December 2011– Page 29 5. Agency selection / Recruitment channels used How important to you are the following factors when it comes to choosing and using a recruitment agency to cover temporary positions? Base: Respondents who use agencies, single response not at all important (1) (5) very important

30. December 2011– Page 30 6. Agency assessment How important is / are your agency / agencies in helping your organisation meet its corporate objectives and strategy? Base: Respondents who use agencies, single response Percentage of respondents

31. December 2011– Page 31 6. Agency assessment How satisfied are you overall with the agencies you have used in the last 2 years? Base: Respondents who use agencies, single response Percentage of respondents

32. December 2011– Page 32 6. Agency assessment How effective are your agencies in helping to fill in any gaps in the skills or capabilities of your organisation? Base: Respondents who use agencies, single response Percentage of respondents

33. December 2011– Page 33 6. Agency assessment What could these recruitment and employment agencies do to improve their service to you? Base: Respondents who use agencies, multiple response Percentage of respondents

34. December 2011– Page 34 7. The Agency Workers Directive Base: All respondents Are you aware that the rules concerning the use of agency workers changed in October 2011?

35. December 2011– Page 35 7. The Agency Workers Directive Base: All respondents Did your Organisation make any changes in the use of Agency workers before October 2011 because of the new rules?

36. December 2011– Page 36 7. The Agency Workers Directive Base: All respondents What changes did you make before October 2011 due to the new rules?

37. December 2011– Page 37 7. The Agency Workers Directive Base: All respondents Has your organisation made any changes since the Agency workers rules came into force in October 2011?

38. December 2011– Page 38 7. The Agency Workers Directive Base: All respondents What changes have you made since October 2011 due to the new rules?

39. December 2011– Page 39 7. The Agency Workers Directive Base: All respondents As far as you know, have the changes your organisation made as a result of the AWR ….

40. December 2011– Page 40 7. The Agency Workers Directive Base: All respondents On the basis of the impact you have seen in your organisation, do you think the AWR has ….

41. December 2011– Page 41 8. Current issues What impact do you think significant Public Sector spending cuts would have on your organisation? - Public Sector respondents only Base: Public sector respondents, single response Percentage of respondents

42. December 2011– Page 42 8. Current issues What impact do you think significant Public Sector spending cuts would have on your organisation? - Private Sector respondents only Base: Private Sector respondents, single response Percentage of respondents

43. December 2011– Page 43 Contact details For further information, please contact: Roger Tweedy Recruitment & Employment Confederation Telephone: 0207 009 2119 Email: Roger.Tweedy@rec.uk.comRoger.Tweedy@rec.uk.com Mike Keep Market Shape Ltd Telephone: 01604 642 233 Email: mike.keep@marketshape.co.ukmike.keep@marketshape.co.uk Michael Brewer Cordoba Telephone: 0844 879 4326 Email: mbrewer@cordobaconsulting.co.ukmbrewer@cordobaconsulting.co.uk