Recruitment agencies facing £25k pensions setup hit

"The ‘substantial’ cost to recruitment agencies of pension auto-enrolment has been revealed by professional employment organisation Parasol. Research carried out by Parasol forecasts that agencies employing temporary workers on a PAYE basis could face an initial setup cost of at least £25,000, as they battle to get to grips with the legislation. This figure includes three months of senior internal resource, legal advice, director input, time spent engaging with clients, plus payroll software upgrades. Parasol arrived at the sum after consulting with agencies to find out the steps they intend to take in preparation for the legislation, though the exact cost will naturally vary for each agency. According to Parasol’s modelling, an agency with 800 workers who earn an average of £18,000 a year on PAYE can expect a total year-one cost of around £81,995 from the October 2013 staging date if 60% of workers opt out. If just 30% of agency workers decide to opt out, the projected cost – including initial setup – rises to £111,242. Meanwhile, Parasol estimates that compliance with the legislation will cost a smaller agency – with about 250 workers each earning £25,000 annually on PAYE – a total of £49,812 assuming an opt-out rate of 60%. The predicted cost to an agency of this size, over the first 12 months from the February 2014 staging date, would increase to £64,200 if 30% of workers opt out. For more information on Parasol’s calculations, visit: http://www.parasolgroup.co.uk/for-recruiters/pensions/pensions-calculator/"

Recruitment sector being transformed by new innovative player

"Oil and Gas People, the ground breaking energy jobs board, is succeeding in disrupting and transforming the recruitment sector through innovative use of social media and web technology, the company reports today. The company has seen a 20% month on month increase in oil and gas companies registering and a 40% increase in jobs posted in last quarter, citing the effectiveness with which Oil and Gas People gets the best recruits. The news comes in the week of an influential report showing that the oil and gas industry faces a tougher task recruiting the right candidates. The annual Aberdeen & Grampian Chamber of Commerce oil and gas survey revealed that an increased demand for oil and gas contractors is causing a skills shortage.Yet Oil and Gas People’s transformation of the Oil and Gas Recruitment sector by developing a smart in-site candidate management system that saves time and money – 95% of traditional recruit, is helping the industry overcome these barriers to recruitment. http://www.oilandgaspeople.com/"