The recruitment agency supply chain is becoming increasingly complex with increased risks associated with the provision of flexible workers if not managed correctly.

In this article, we discuss the risks around organisations not fully understanding their recruitment agency supply chain.

There are approximately 31,000 recruitment agencies in the UK and the recruitment market is worth a staggering £38 billion (recruiter.co.uk).

A significant number of businesses in the UK utilise the services of recruitment agencies for the provision of temporary labour.  Temporary labour gives businesses the flexibility to support varying requirements for labour dependent on operational needs and pressures.

Over the past 18 months, a number of large organisations in the UK that engage with recruitment agencies have fallen short of undertaking sufficient due diligence checks to ensure full compliance of the supply chain.  Issues around zero hour contracts, national living wage, IR35 and modern day slavery have been uncovered and then published in the press.  In the majority of instances these issues have significantly damaged brands and organisation reputation.

The recruitment agency supply chain is becoming increasingly complex with increased risks associated with the provision of flexible workers if not managed correctly.  End clients have significant responsibility to ensure that the recruitment agencies that they choose to engage with, provide flexible labour solutions ethically and on a fully compliant basis.

There need to be rigorous systems in place to ensure that all the relevant due diligence checks are conducted and that there is a system to regularly check the ongoing compliance of recruitment agencies.  Having robust systems in place will significantly reduce business risk associated with the recruitment agency supply chain.

Conformity Plus offers businesses innovative service solutions that mitigates risks associated with the recruitment agency supply chain.  We have experienced specialist consultants that fully understand the recruitment sector and the risks that it potentially brings.

For more information on how Conformity Plus can support you in de-risking your business in relation to the recruitment agency supply chain please contact us at: gmorris@conformityplus.co.uk – 07792500176

Back