Aisha Bushell: The TIARA judging process has been designed to evaluate excellence in recruitment through the lenses of employee engagement, client service, innovation, growth, and purpose – all in context of stage of scale and differentiation as both a partner and employer of choice. As Qdos is sponsor of the Growth Recruitment Business of the Year, why do you think it’s important to assess successful growth through these lenses and what do you look for in a winning entry?
Sam Cox: Commercial growth can come in many guises, so it has been important to use a wide lens when considering the nominees for the Growth Recruitment Business of the Year award. Clearly, turnover and profitability make for compelling headlines when it comes to assessing growth, but we have seen several excellent submissions from businesses evidencing growth in their own workforce, sector diversification, and product innovations. It’s been a fun exercise balancing these factors – and a necessary one to ensure that the award is not simply won and lost on the strength of balance sheets.
AB: What themes stood out in the shortlists you judged this year in terms of what is under-pinning growth or enabling recruiters to build greater resilience in a challenging market?
SC: Having judged the same award last year, a lot of the focus was on international growth and expansion. Whilst these themes were still prevalent this year, there was a marked swing towards client relationships. Many of the nominees were able to demonstrate growth from longstanding clients – working with them over a prolonged period to provide tailored services. It was clear that these businesses were seeing huge amounts of success by really getting under the hood with their clients and identifying ways of enhancing their services. This is great to see, as it both maximises earnings for the recruiter, but inevitably aids client retention and longevity.
AB: We have seen a growing trend of staffing firms looking to capitalise on demand for more agile workforce solutions and contractor services, with growth in project RPO and MSP lite. Why do you think this trend will continue and how is Qdos supporting this evolution?
SC: ‘Going above and beyond’ the traditional remit is something that continues to serve recruiters well – this can be small scale, but a complete RPO/MSP offering is possibly the natural evolution, and is clearly the direction of travel for the industry. In terms of Qdos’ support, we have worked with several firms offering RPO/MSP. The key to our success here is to enable firms to embed our IR35, tax status, and insurance solutions into their tenders, and their suite of services in general. We are recognised as a leading expert in these fields, and our clients have been given confidence that partnering with us in these areas increases their value proposition and gives their clients comfort that they have access to best-in-class support in niche and challenging areas.
AB: What is on the horizon in terms of worker regulation/legislation that recruiters should be preparing for and how is Qdos supporting them?
SC: With the new Labour government, it is an interesting time to consider the future of regulation and legislation. Some form of legislation governing the use of Payroll/Umbrella firms is likely, and should be welcomed. Whilst there are a large number of such firms providing a valuable and diligent service, the lack of oversight has inevitably led to some rogue operators in this space. It is likely that such legislation will require an enhanced level of due diligence on the part of recruiters. Whatever the future holds in this respect, Qdos will continue to support businesses with innovative risk management and insurance solutions.
Other changes to keep an eye on would be the developing case law and precedent with respect to the Off-Payroll/IR35 rules. The wheels of HMRC often turn slowly, but several early cases under 2021 legislation are now reaching maturity. Qdos will be at the forefront of updating and refining best practice guidance on all matters IR35-related, supporting our clients in updating their approach to compliance in line with the latest case law.
AB: With an eye on growth, what advice can you give recruiters to de-risk themselves, their clients, and contractors as well as create opportunities?
SC: As an underwriter by trade, I naturally lean towards a couple of considerations from an insurance perspective. The first would be contract terms. Whilst there is always the temptation to acquiesce to client demands when it comes to contracts, it is crucial that recruiters have an eye on liability for the actions of placed workers, particularly in the PSC/self-employed space. Ultimately, recruiters will have little to no involvement in the day-to-day activities of workers they place, and careful consideration should be given to circumstances where they may be held liable for the errors/omission of placed workers. This consideration always comes to the fore during periods of growth – new contracts with new clients, and maybe even new local laws/conventions to navigate. This should always be reflected in a recruiter’s own insurance arrangements.
The second consideration – specifically for recruiters placing PSC/self-employed workers – is the insurance held by the contractors themselves. Agencies will often be required to assure clients that contractors carry relevant insurances, but keeping on top of this responsibility can be arduous, technically challenging, and easy to overlook – a recent study we carried out showed that 1 in 5 contractors were unable to evidence cover that matched their contractual requirements. Working with a contractor insurance specialist (such as Qdos!) is a sensible way of filling a compliance gap, and minimising admin burden in this respect.
