The Recruitment Leadership Podcast

Business Event on the Horizon? How to Plan, Prepare and Execute

Welcome to Season Two of the Recruitment Leadership podcast!

 

In this season, we're talking all things finance for recruitment, with Nick Russell of Sonovate.

 

As the Commercial Sales Manager of one of the UK's fastest growing FinTech companies, Nick provides a wealth of knowledge on the often tricky topic of finance and investment.

 

A three-part how-to series, there's something for every recruitment in this series.

 

This episode is geared at more substantial recruitment businesses who may be a little bit further along their development curve - typically more than 50 heads.

If you're a director or owner who may have a business event in their sights such as an exit, an MBO or trade sale, for example, this episode will be essential listening for you.

 

01:54 - A lot of large recruitment businesses are wildly non-compliant and don't realise. A lot of the problems stem from the contractor workforce or temporary workforce - but not exclusively. It can be a big issue once you get involved in due diligence but also has an impact on financing.
What problems have you (Nick) come across with larger businesses when you get involved in the financing discussion?

04:53 - One company I worked with last year assumed there were no problems with their compliance, as their household-name client has not raised any questions. I identified there was an issue with their terms that may have prevented them from getting paid if there was a dispute. Although embarrassing, they admitted their mistake to the client and put things right. A less scrupulous client could have been willing to take advantage of that situation - have you (Nick) had anything like that happen?

09:22 - From a finance perspective, what do it do you think, Nick, that different types of buyers look for when they acquire a recruitment business?

10:55 - What number is good for payment terms?

11:43 - What classes as a lot of credit notes, in percentage terms?

14:00 - To what extent do funding organisations like Sonovate actually make the assessment of how a management team perform and how financially astute they are?

17:45 - Taking the perm invoicing and finance scenario, you (Nick) said people will do anything between 60 and 90% - what are the factors that influence that?

22:28 - What's your advice to recruitment business owners about protecting themselves from fraud?

29:44 - As the possibility of a sale or investment becomes more real, business owners want to look at swapping their financing arrangements. What are the signs that they should do that do you think?

31:33 - You mentioned there about if the service is poor. There are some issues that are driven by the recruitment business which means that the financier can't give them a good service. What are they?

33:13 - How hard is it to swap financier? 

 

 

If you have any questions from the podcast or have any topics you would like to be covered, please email - alison@recruitmentleadership.co.uk

You can also contact Nick Russell from Sonovate at - nrussell@sonovate.com 

 

Please like, share and leave a review if you enjoyed this episode.

 

Thanks for listening, we hope you join us again next time!

How To Adapt to Market Changes

Welcome to Season Two of the Recruitment Leadership podcast!

 

In this season, we're talking all things finance for recruitment, with Nick Russell of Sonovate.

 

As the Commercial Sales Manager of one of the UK's fastest growing FinTech companies, Nick provides a wealth of knowledge on the often tricky topic of finance and investment.

 

A three-part how-to series, there's something for every recruitment in this series.

 

In this episode, Alison Humphries and Nick Russell are discussing the changes in the recruitment market which are shaking things up.

In particular, the focus is on how this might affect your financing arrangements if you are a recruitment, business owner or director.

This episode will be of interest to businesses of all sizes, wherever you are on the developmental curve.

 

Episode Agenda:

• 01:42 - Leaving aside the B word (Brexit), we are in an environment where it looks like there's going to be increased regulation. And of course, in 2020, we've got the IR35 changes due to be rolled out in the private sector.
  Now they have those had a major effect in the public sector. We can go into a bit more detail about that, but at a very high level, what effects do you predict and how might funding be affected for recruiters?
• 04:52 - Questions on Statement of Works -
  How does it work in principle?
  Who's responsible for delivering on that statement of works?
  How much do I need to know about what my contract is doing?
  Am I the person responsible for completing?
  So how do we think this will affect it will affect the financing of recruitment contracts?
• 08:53 - Is there going to be a trend of contractors being hired on day rates going forward as an indication that they are not under supervision, direction and control?
• 15:17 - In regards to GDPR, are there any insurance implications that you think business owners should be looking at if they haven't already done so, from a financing funding point of view?
• 19:32 - A number of businesses have enquired not about invoicing and finance for temporary and contract workers, but invoices for permanent workers.
  Is something that is becoming more widespread? Why would a recruitment business owner want to finance their permanent invoices?
• 24:02 - Are there any trends that Sonovate staff are seeing at the moment in delivering their service - such as credit control?
• 29:21 - An increasing number of companies, during the run-up to Brexit, have decided to look at incorporating overseas different countries for different markets. 
  What is the impact if you are using funding from a business here in the UK?
• 33:43 - What are the key questions that a recruitment business owner should ask themselves or ask a potential candidate when choosing a financing partner?

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If you have any questions from the podcast or have any topics you would like to be covered, please email - alison@recruitmentleadership.co.uk

You can also contact Nick Russell from Sonovate at - nrussell@sonovate.com 

 

Please like, share and leave a review if you enjoyed this episode.

 

Thanks for listening, we hope you join us again next time!

How To Structure and Transform your Micro-Business Using Finance

Welcome to Season Two of the Recruitment Leadership podcast!

 

In this season, we're talking all things finance for recruitment, with Nick Russell of Sonovate.

 

As the Commercial Sales Manager of one of the UK's fastest growing FinTech companies, Nick provides a wealth of knowledge on the often tricky topic of finance and investment.

 

A three-part how-to series, there's something for every recruitment business in this series.

 

This first episode is targeted to recruitment businesses who are startups, micro, small and lifestyle looking for advice on how to structure and transform their business using finance and investment.

 

Episode Agenda:

• 02:25 - The time from startup to seeking 3rd party funding from organisations has shrunk dramatically over the last 10 years.
  Why is this?
• 03:49 - Despite the huge number of startups and low barriers to entry in the industry, financing invoices are generally quite an attractive proposition for providers of finance.
  Those two things might seem slightly contradictory - why is it such an attractive commercial arrangement for financing organisations?
• 07:50 - For businesses who originally set up as a lifestyle business, they tend to typically start with permanent recruitment.
  For those keen to break into the "sexy" action - which is temporary and contract and all those sustainable, visible revenues - whats the key advice for those organisations? What options do they have? What might hold them back?
• 14:00 - Objectively, what are the pros and cons of using different finance sources such as equity providers, angel investors and friends/family?
• 22:55 - What is the onboarding process for a micro-business to partner with an organisation like Sonovate?
• 26:21  - What does the audit that finance companies execute involve?

 

If you have any questions from the podcast or have any topics you would like to be covered, please email - alison@recruitmentleadership.co.uk

You can also contact Nick Russell from Sonovate at - nrussell@sonovate.com 

 

Please like, share and leave a review if you enjoyed this episode.

 

Thanks for listening, we hope you join us again next time!

Season Two Preview

Season Two of the Recruitment Leadership is coming!

In this season, we're exploring the not so glamorous but oh-so-necessary world of finance for recruitment businesses.

For three episodes, Alison Humphries is joined by the Commercial Sales Director of one of the UK's fastest growing Fin Tech Businesses - Nick Russell.

Nick works for Sonnovate, who specifically provide financing and technology to help recruitment businesses achieve their goals for growth.

Nick's wealth of knowledge and experience make him the perfect counsel for discussing the different scenarios, situations and options that recruitment businesses have when it comes to financing.

Alison's conversation with Nick spans three individual episodes:

Episode One is aimed at new and smaller businesses who may be asking their first entry into the temporary and permanent marketplace.

Episode Two is talking to all sizes of businesses about changes in the recruitment market and the financing. Covering some of the recent legislative changes such as IR35.

Episode Three is considering a scenario based on those who might be looking at a business "event" on the horizon; whether a trade sale, MBO or other types of investment, including the financing aspects and implications of different types of events may have on your business.

 

Tune back in on the 16th of May, when Season Two will officially be launching. We hope you join us then!

 

"Thanks, but we already know that candidate..." Candidate Introduction Disputes in Recruitment

 

This episode of the Recruitment Leadership podcast explores a crucial issue many recruitment businesses face when pursuing a referral fee: candidate introduction disputes.

 

Join Alison Humphries and Simon Whitehead, Managing Partner of HRC Law, as they explore three different scenarios of client kickback on candidate CVs.

 

 

Episode Agenda:

 

02:15 - Scene Setting.

 

03:00 - How do recruitment business owners deal with these scenarios?

 

09:34 - Is it reasonable for a recruiter to ask for evidence of the client already knowing the candidate?

 

12:05 - If a client hangs onto a CV from a previous source, how does that sit with GDPR - especially if the candidate doesn't know?

 

14:40 - Summary of key points.

"Risky Business" - How to Protect Your Recruitment Organisation From Risk

Episode Agenda:

02:03 What are the main types of risk that recruitment businesses face - including those arising from Terms of Business?

06:12 Now the GLAA has a wider remit, is this something recruiters should be worries about?

09:11 Since GDPR, the Information Commissioners Office seems to be keeping a closer eye on recruitment agencies. Has there been any further clarification, for example, on how businesses can use the "legitimate interest" justification for data processing?

11:59 What kind of things tend to cause issues with Subject Access Requests?

13:44 Employment Tribunals: why has there been such a substantial increase?

16:01 How can recruitment businesses protect themselves from disputes that may arise after company social events?

19:12 How can recruitment business owners protect themselves from claims regarding equal pay or discrimination from within their own businesses?

IR35 Temperature Check - What Recruiters Need to Know Now, with Simon Whitehead

Episode Agenda

• 02:20 - What challenges and differences can you see between what happened in public and what may happen in private
• 07:05 - Tax and Employment status: what exactly do recruitment business owners need to check and document with my workers and clients before someone is put out on a job?  Including tools and definitions
• 12:38 - The new rules are only intended to be applied to large companies: how is that going to be defined? Where do responsibilities lie?

Key takeaways

1) Consultation process in summer 2019

2) If you haven't already, listen to first Podcast on Good Work Plan/Taylor Report

3) Definition of a "large company" is going to sit with the end-user client

4) Keep reviewing IR35 as we are yet to get Finance Bill, which is likely to come in early 2020 

Practical implications of the Good Work Plan, with Simon Whitehead

Episode agenda: 1:30 - Introduction to our guest, Simon Whitehead of HRC Law. 2:40 - First Reaction to the 'Good Work Plan', the Government response to the Taylor Report. 4:08 - Removal of Swedish Derogation. 6:38 - Government's intended direction with this plan. 8:04 - In light of this proposal, is there anything extra recruiters need to do other than inform agency workers about their rights? 14:10 - What are the practicalities with the 'right to request a permanent contract'?