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REC Healthcare Wednesday 14 th September.

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Presentation on theme: "REC Healthcare Wednesday 14 th September."— Presentation transcript:

1 REC Healthcare Wednesday 14 th September.

2 Agenda 13.30. Welcome and Introductions 13.35. What is REC Healthcare and whats it about? 13.50. AWR and Healthcare- the client perspective. 14.40. AWR participation exercise- are you ready? 15.00. The Future of the Recruitment industry in Healthcare. 15.30. Recruitment Industry Benchmarking- where next for Recruiters? 16.00. Closes.

3 What do we aim to get from this meeting? Tie up AWR. Make sure you are prepared and know what your clients want. Look at the future of the Recruitment industry in healthcare and as a whole. What do you want from REC Healthcare?

4 What are the aims of REC Healthcare? To give a better voice for the Healthcare sectors. Attract high profile speakers. Develop a co-ordinated response to government policy. HOWEVER, this does not mean an end to individual sector groups.

5 How will it be governed? We will have an executive of around 6-8 people. There will be an elected chair of the group who will act as spokesman and chair meetings. We are still seeking nominations for a chair. The elections will take place in early October.

6 How will the future look? REC Healthcare will meet twice a year. At future meetings we will look to invite Government ministers. There will also be break-out sessions to allow specific issues to be discussed. Today we will look at the broader picture.

7 Lobbying priorities. Continuing the REC Public Sector Campaign. Lobbying and influencing public sector procurement and HR professionals. Ensuring that framework and vendor arrangements promote fairness and best practice. Various other individual campaigns.

8 How will we do this? Meetings- inviting high profile figures. Media work Stakeholder engagement. Develop solutions not just problems- what is best practice? Ensure that members use the REC lobbying kit.

9 What do you want to see from REC Healthcare?

10 Recruitment & Employment Confederation Agency Workers Regulations 2010 Healthcare Sector meeting 14 September 2011

11 AWR and Healthcare © REC Copyright 2010 Bunmi Adefuye Solicitor REC Andrew Milner NHS Employers

12 NHS Employers Guide on how to meet your responsibilities under the New Agency Workers Regulations Employers responsibilities and actions Agencies responsibilities and actions Principles for identifying a comparator role Principles for defining the hiring organisation Tracking of agency workers within a defined organisation ( REC: Please note that this is not the entire document prepared by NHS Employers and we extracted most of the text for discussion in the session)

13 Employers responsibilities and actions Working effectively with agencies Employers are expected to share the following information with agencies: comparator pay rate information (REC: We have prepared a written request for information form G ) the local benefits which apply in your trust (on top of pay) that will influence the comparator rate (REC: Regulation 6; Relevant terms and conditions – Pay, duration of working time, night work, rest periods, rest breaks and annual leave. ) information regarding day-one rights for the agency worker (you may wish to share this with the agency so that they can give some information before the agency worker commences (REC: Regulation 12 and 13 are the hirers responsibility)

14 It is the responsibility of the employer to provide information on day-one rights to the agency worker and you will need to make sure that this is part of the day-one induction. You should work with the agency to carry out a risk assessment for pregnant workers. (REC: Will discuss pregnant agency workers in the next slide) Employers must notify the agency of the expected end date of the assignment – this provides an early indication of whether this assignment will be covered by the agency worker regulations. (REC: Conduct Regulations 2003 and Use REC Assignment details form) They should also provide some history of the trusts infrastructure and organisational status. This will help the agency to identify whether the agency worker has worked with you before and help you understand if this assignment moves them into the 12-week qualifying period.

15 Working effectively with agency workers Employers should make available all relevant information regarding the services that are available to the agency worker on day one of the assignment. For example, how to access internal vacancy information. They should also: provide time off for pregnant workers for ante natal appointments carry out induction with agency workers depending on the circumstances of the assignment, consider providing appraisals. (REC: The BIS guidance published on 27 th May 2011, has confirmed that if the hirer chooses to conduct an agency workers appraisal in order to determine a pay in relation to a bonus, that should not on its own affect the workers employment status) educate line managers on the implications of the regulations and ensure they understand their role in terms of inductions and appraisals, where appropriate.

16 In general, Employers should: provide a point of contact for any potential issues relating to the introduction of the Agency Workers Regulations identify other employment an individual agency worker has completed in the organisation.

17 Agencies responsibilities and actions Agencies are expected to: identify the comparator pay rate. In many cases this will be Agenda for Change pay rates provide key messaging to the employer and clear guidance on what they are doing to ensure compliance – this could be provided directly or via the agencys web site clarify where the liability lies for various aspects of the regulations provide a contact point in the agency for the employer to raise any questions Agencies are responsible for carrying out impact assessments for the employer to measure the cost that will be incurred from implementing the guidance. All agencies will have their own version of cost impact assessments, and the type of assessment carried out will depend on the number of temporary workers used within the trust

18 They must notify the employer of any agency workers who are approaching the 12-week Qualifying period, manage the rates for weeks 1 to 11, and be transparent about the rates for assignments of 12 weeks and above.

19 Working with and informing agency workers Agencies should provide information to all their workers on the implications of the Agency Workers Regulations. They should also provide guidance on what the agency will do if an issue is raised around non-compliance with the regulations. Employers may wish to ask the agency for copies of this information so that they know exactly what the agency worker is being told. Because each agency will have slightly different procedures, it is best to ask them directly for the procedures that apply to them.

20 Agencies are responsible for: clarifying previous employment history with the worker regarding the organisations they have worked for ensuring holiday entitlement and other additional costs are included in the rate calculation (REC: The REC was concerned about the administrative burden the calculation and payment of this additional holiday will place on agencies. BIS has confirmed that any additional holiday (but not the statutory entitlement) can be rolled up and paid in lieu of taking leave. If you do this, the REC strongly recommends that it is itemised separately on the payslip or given as a one off payment at the end of the assignment.) However, under the Regulations the agency worker is entitled to take any such paid additional leave, and so there is a risk in rolling up the payment as part of the hourly/daily rate or giving it as a one off payment at the end of the assignment. A risk-free approach would be to allow the agency worker to take the leave and pay the agency worker at that time.) identifying and sharing with the agency worker the expected duration of the assignment (REC: Provide this information in the assignment details form)

21 Asking the hirer to carry out a risk assessment. If this says that the agency worker cannot continue in the role, the agency should find suitable alternative assignments finding suitable alternative employment for pregnant workers (if a risk is identified) managing information about ongoing assignments the agency may have for the agency worker carrying out appraisals for agency workers ( REC : BIS Guidance suggests using appraisal/feedback system or create simple system aligned to the one used by the hirer) Responsibilities up to and after 12 weeks: The agency should have implemented a way of identifying when a worker is coming up to 12 weeks and should flag this with the employer at week ten. The employer and the agency should confirm the comparators that will be applicable. At 12 weeks the agency should: clarify any changes to rate of pay with the agency worker clarify any changes to working conditions. (REC : Assignment details form)

22 Principles for identifying a comparator role Comparator roles for agency workers must be identified within the NHS organisation so that comparable terms and conditions can be applied once an agency worker passes 12 weeks. Any comparator must be in an identical role but directly hired by the organisation, rather than coming from an agency. (REC: Regulation 5 (4) and BIS Guidance May 2011) While identifying a comparator can be difficult, factors that may be able to be used as a guide include: being employed on the same Agenda for Change pay scale being employed on the same Buying Solutions job specification being in a position that uses the same skills and competencies. The role may be on a different ward or department or for a different line manager, but if it broadly fits with the above criteria it may be classed as a comparator role.

23 Principles for defining the hiring organisation The complexity of the NHS as a service and the fact that it is made up Of numerous constituent organisations means there is potential for confusion over how long an agency worker has been engaged with the same hiring organisation. However, identifying the hiring organisation is essential for determining the 12-week qualifying period. The following factors should be considered when defining the hiring organisation: how the booking was made (who it was made by or through) who the funding holder for the position is who the service provider or service owner is.

24 The funding holder could be the main decider in defining the hiring organisation. In instances where a service or organisation may have merged or moved to a new provider, the test that could be used would be to see if the permanent staff within the service transferred to the new provider. If the staff remained in the first organisation, the first organisation could continue to be defined as the hiring organisation. Where permanent staff underwent TUPE transfer to a new provider, it could be seen that the responsibility of hirer for the purpose of agency staff within that service would transfer to the second organisation. Employers and agencies should be aware of the following issues: In organisations where there has been a provider/commissioner split, a system may remain in place where there is, in effect, one point of booking across two organisations. An agency worker may be employed on a site where services are provided by a different organisation to the one that owns the site. In the case of merged organisations, services may now be provided by a different provider, or there may be jointly funded posts, for example, between healthcare and social care budgets.

25 Defining an Organisation In order to help clarify situations where there may be confusion, organisations should define the services which fall within their organisation to the recruitment agency or business. A unique identifier could be used in these transactions to make identification of the hiring organisation simpler. The NHS VPD code, that is used to differentiate organisations for payroll purposes, could be used.

26 Tracking of agency workers within a defined organisation Tracking an agency working within a defined organisation may be a difficult task. Suggestions for dealing with this include the following: Use finance or invoice data to check if a person has worked within the organisation before. This may involve standardisation of invoices and seeking further details from the agency. Include a disclaimer in agency terms and conditions and in the booking confirmation given to the worker at the point of booking to say that the person has not, to their knowledge, worked in the organisation before. Monitor booking history via e-rostering/centralised bank systems.

27 Recruitment & Employment Confederation AWR exercise, are you ready?

28 Scenario: Qualifying for equal treatment Ivan is registered with REC MED Temps. He is offered an assignment to work for ABC Hospitals as a Nurse in the paediatrics ward. He works for ABC Hospitals from 24 September until 22 October 2011. His working days are Saturday to Wednesday each week. He is off sick from 23 October to 26 October 2011 and returns to work on 29 October 2011. The assignment finishes on 9 November 2011. He is then offered a further assignment to work for ABC Hospitals, this time to work in their geriatrics ward as a Nurse. This assignment will commence on 19 November 2011 and the Hospital requires the worker for 3 months. Following a disagreement, ABC Hospitals terminates its contract with REC MED Temps and instructs another local agency (New Agency) to provide it with a number temporary staff including Ivan who will continue to work in the same role as a Nurse in the geriatrics ward. New Agency commences supplying Ivan from 3 December 2011. There is no interruption in his assignment with ABC Hospitals as a Nurse in the geriatrics ward.

29 Questions If he does qualify for equal treatment, from what date? If you were New Agency, what information should you obtain from Ivan and ABC Hospitals in order to comply with the Agency Workers Regulations? If you receive a complaint from Ivan alleging that he has not received equal treatment, what steps will you take prevent the matter from escalating to Tribunal proceedings.

30 Where are we now? The Department for Business Innovation and Skills has issued guidance on the Regulations. Sector specific model contracts are being prepared. 1. Do members currently use the REC 2007 Locum Doctor contracts ? 2. Have there been any issues when using the above contract under the framework agreements? 3. Does the framework agreement provide any standard terms for agencies to use i.e. between the agency and the client or agency and the doctor? 4. Which contracts do members use when supplying other worker i.e. not Locum Doctors? 5. Which framework agreement do members operate under ?

31 Recruitment & Employment Confederation Thank you for listening.

32 This document has been created for the purpose of the presentation only and does not constitute specific legal advice. It is not a substitute for specific advice on related matters and issues that arise and should not be taken as providing legal advice on any of the topics discussed. © REC 2011. All rights reserved: no part of this publication may be reproduced, stored in an information storage and retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the written permission of the REC.

33 Recruitment & Employment Confederation The future of Healthcare Recruitment Andrew Milner, NHS Employers. 14 September 2011

34 Recruitment Industry Benchmarking Healthcare presentation 14 th September 2011

35 Crawfurd Walker BSc (Hons), MBA, MRTPI, MCSI – Chief Executive From a property and leisure background, following an MBA at Cranfield University worked as an independent consultant advising a number of SMEs and FTSE 100 companies. Crawfurd is a founding Partner of a Mayfair based Corporate Finance company providing experience in a wide range of projects and industries with clients ranging from start – ups to Governments. He is also one of the founders of Recruitment Industry Benchmarking Ltd, taking over the role of Managing Director in 2008. Crawfurd was a member of the judging panel for the Recruiter Awards for Excellence 2009 and the Institute of Recruitment Professionals Awards 2010 & 2011. Chris Ansell MA, MSc, MIET C.Eng MBA, CFA – Chief Financial Officer Chris started his career as a Research Engineer with BT, before moving into strategy and planning including writing the Business Results section of BTs European Quality Award submission. After his MBA, he spent 3 years in Investor Relations in the UK and the US, before spending a decade as an equity analyst at a leading international investment bank. He then spent 3 years as Head of Finance in a private company. Chris also lectures at Cranfield University and to FTSE-100 companies on Finance. Romney Rawes - Founder Romney is the creator of the RIB Index and has over 35 years hands-on industry experience, including a number of non- executive directorships. He was the inaugural winner of the Recruiters Gary Clark Award for lifetime achievement and established the RIB Index to help promote best practice within the industry and provide key information to professional management. A bit about us

36 Benchmarking – recognised value added. Knowledge is your power. The more knowledge you have the easier it is to make a profit. Stuart Wilde Risk comes from not knowing what others are doing. Warren Buffett If you cant measure it you cant manage it P.F. Drucker Excellent firms dont believe in excellence, only in constant improvement and constant change. The availability of information is the only basis for effective day-to-day problem solving, which abets continuous improvement. Tom Peters Dynamic recruitment market Simple internal historic comparisons not provide information required. For stakeholders / financiers / you!

37 Testimonials We saved £250,000 by acting on just one insight provided by our RIB reports. Richard Grace – Managing Director, Gordon Yates Ltd As a result of RIB Indexs data comparisons we changed some of the discussion areas of our monthly board and management meetings. We now have real, current, competitor figures to contrast against our own. This comparison has showed us areas that we excel at, and has highlighted some of our inefficiencies enabling us to motivate staff and cut costs, all with a significant positive impact to our bottom line. I would therefore recommend the RIB Index as a crucial management tool for anyone running a recruitment business. Kevin Thorn – Managing Director, E-resourcing Ltd We recently successfully marketed and sold our recruitment business. There is no doubt that our RIB data proved a valuable, objective measurement of our success and helped to attract potential acquirers. We are convinced that it helped us focus on improving KPIs prior to marketing the business, and provided solid evidence of our achievement of those KPIs against external competitors. We would unreservedly recommend RIB as a crucial management tool to anyone who wants to improve their performance and/or groom themselves for successful exit. Mark Farris – Founder, Judd Farris Ltd

38 RIB – An introduction Specifically designed for the recruitment industry. First Reports produced late 2002. Strategic Partnership with REC 2011. REC promote RIB, aim to become integral part of many products – Steering Group etc. Provides access to current market intelligence. Not available elsewhere – Companies House 18 months old etc. Management tool to enabling management to drive performance. Not an academic exercise. Members at present provide potential for 100+ inputs. RIB Members represent cross section of industry. 2010 IRP Awards over 50% of winners or nominees RIB members. All about enhancing profitability and shareholder value. Enhancing the performance, profitability and value of members

39 Members – A broad cross section of the industry

40 How Does the RIB Index work ? Web based. members login at:- Regular cut off and report available dates. RIB - Cut off 1 st Friday of month, personalised reports ready by Monday. E:mail reminders & Report Ready notification. Approx 5 weeks to gather management information. e.g. July report available 5 th September. Quick to input. Raw information – management accounts - just 15 minutes per month. All reports personalised, fully confidential and secure. Clear user friendly reports – enables quick focus on key areas. Used as part of regular management reporting cycles. Adds real value not just information. Performance, current best practice – culture of challenge and improvement! Current information rapid informed decisions competitive advantage

41 Reports & Sectors Members receive two personalised reports (minimum). Industry Wide. Monthly Snaphsot – benchmarking current performance. Historical Analysis – benchmarking historical performance. Also Sector(s) specific reports. No extra cost or inputting required. 21 Recruitment Sectors – reflecting RECs sectors. New sectors can be added in response to members demand. Potential for Geographic / Turnover splits, etc. NEW – Executive Summary for those that input! Market overview & Sector specific comparisons – for 15 minutes a month.



44 Monthly Snapshot Pages Sales NDR Margins Profit Finance Staff Client

45 Historical Analysis

46 RIB Scorecard

47 RIB Dashboard

48 Turnover Growth





53 Vacancies

54 Benefits of RIB include: Membership is proven to work and deliver real benefits by:- Identifying, and quantifying, your business strengths and weaknesses. Highlighting opportunities for improving process and removing costs. Focusing the business on key areas that drive real improvements. Enables management to rapidly implement informed decisions – act before competition. Promotes culture of evaluation and continuous improvement. Enhancing the profitability and shareholder value of your business. Provides a vital current external perspective to give a true measure of business value.

55 How do I join RIB? Just complete forms in pack & hand to Chris or Crawfurd. Tel: 020 8544 9807 (DD) Offer – 6 months membership for the price of 4! £100 per month, normal price £150 – saving £300. Low commitment and risk – no long tie-in. Members stay members because it adds real value to their company! RIB takes all new members through simple web process. Members Pack including:- Handbook with detailed definitions. Membership logos, etc. Measure Manage and Maximise your performance with RIB. Thank You.

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