This is a very timely guest blog post written for us by Hadyn Luke, Director of CMS Vocational Training around how the rise in casual work patterns present fresh challenges for recruiters.
Self employment, seasonal work and casual, zero-hour contracts are all on the rise. With the dynamics of employment changing, fresh challenges are arising within the recruitment industry. CMS Vocational Training, specialists in offering government funded and commercial training programmes for young people and adults across Yorkshire, explore some of the challenges professional recruiters are facing in the wake of the growing demand for casual work.
In September this year, the Office for National Statistics revealed that more than 900,000 workers on the UK are on zero-hour contracts, a rise of 20% in one year. Unlike full or part-time contracted work, in which a set number of hours are guaranteed each week, zero-hours contracts do not offer any guaranteed hours or other employment benefits such as sick pay and holiday pay.
The rise of zero-hour contracts has ignited controversy, namely due to the fact they don’t guarantee work and only offer a median hourly rate of £7.25. This compares to the median hourly rate of £11.05 an hour for employees.
The morality of zero-hour contracts was called into question when the popular taxi hire service, Uber, was taken to a London employment tribunal by two of its drivers. The drivers claim that Uber was acting unlawfully by failing to offer sick pay and holiday pay to its workers.
Uber argues that its drivers are technically self-employed opposed to workers, which are given similar rights to employees, including being entitled to sick pay, holiday pay and protection from unlawful pay deductions.
One of the Uber drivers taking the company to court, states his net earnings in August 2015 were just £5.05 an hour after expenses had been deducted.
The Uber employment tribunal case ruled that Uber drivers are not self-employed and consequently are entitled to receive the national minimum wage, as well as holiday pay.
In the wake of the tribunal victory for the Uber drivers, forecasts are being made that the result could have a far-reaching impact on so-called “gig economy” workers, in which people work for a number of different employers on a daily basis without having a fixed contract.
The Guardian notes how the Uber drivers’ victory could signal greater change for the self-employed.
How do the pay/conditions of zero-hour contract work compare with apprenticeships?
The current minimum wage for an apprentice is £3.40 an hour, which applies to individuals under 19 and those aged 19 or over who are in their first year of the programme. Whilst the pay of apprenticeships is even lower than the median hourly rate of £7.25 for zero-hour contracts, the objective of apprentice schemes is to train individuals so they have the experience, skills and qualifications to find employment in a given field.
Asides getting ongoing training to ensure the continual development of an individual, apprentices typically get appointed a personal account manager, to discuss how the programme is going and any further development needs.
Unlike the controversy surrounding the lack of holiday pay within zero-hour contracts, apprentices are also entitled to paid holidays.
So how does the rise in zero-hour/casual contracts compare to temporary or permanent work with recruitment agencies?
Unlike casual, zero-hour contracts, whereby workers are literally not contracted to any minimum hours but are required to be available all week should their services be required, with recruitment agency work – temporary or permanent – workers are guaranteed to work a set number of hours per week, therefore providing a steady income. Furthermore, an agency worker is entitled to receive holiday and sick pay, again giving them greater working/income stability.
So how do modern working formats such as zero-hour contracts and apprenticeships create challenges for recruitment agencies?
The reason employers choose to offer zero-hours contracts is primarily due to the fact it is difficult to predict their workload. Having an employee at their disposal, enables the employer to be adequately staffed at all times. As most recruitment agencies are centred on providing candidates with set/guaranteed hours, at least the minimum wage and various employment rights, this casual type of work does not really adhere to the principles or objectives of a recruitment agency.
In terms of apprenticeships, set hours are given, as is a minimum wage and other employment benefits, such as sick pay and holiday pay, on top of the ongoing training apprenticeships provide. Consequently, many recruitment firms will happily recruit for apprentices. Similar to how CMS VOC will advertise an apprenticeship vacancy, shortlist applicants and arrange an interview with the employer, a recruitment agency involved in apprenticeship programmes will also take care of many aspects related to recruiting an apprentice.
The dynamics of modern employment might be evolving, but it’s difficult to deny the benefits of stable work, such as apprenticeships and recruitment agency work.
This blog post was written by Hadyn Luke, Director of CMS Vocational Training (CMSVOC). CMSVOC offers a vast range of courses and training programmes across diverse sectors. CMSVOC is committed to helping people of all ages, backgrounds and industries, find the right course and training programme so they can progress in their chosen career or embark on a new career. CMSVOC’s professional and talented staff have specialist knowledge in a wide range of industries and work with learners to help them achieve their career dreams.
