Law Changes to Influence Recruitment: How Will 2015’s Big Changes Affect Employment Sector?

6th July 2015

The government are making various changes this year which will no doubt affect the world of recruitment. With adjustments to minimum wage, childcare costs and wage deductions, we look in detail at the changes and how to adapt the way you find staff and employees as a result.

Notable Employment Changes

2015 will see many governmental changes which will affect the world of recruitment and HR. From changes to the minimum wage to the refunding of childcare costs, many changes to the law will make a huge dent in how and why people choose jobs. We list the most notable changes likely to influence employment:

Minimum wage will be increased – In October this year, the government will raise the minimum wage by 3% to £6.70 an hour for workers over the age of 21. There will also be increases for teenagers and people taking part in apprenticeship schemes.

New Deduction from Wages regulations – On July 1st, employees will only be able to make backdated holiday pay claims for the past two years, a reduction from the current six. Under the Working Time Regulations 1998, employees can claim for unlawful holiday pay deductions when it is in breach of their contract.

Nationwide Fit for Work service – There are a massive number of UK workers and businesses struggling with long-term absence and the Fit for Work service, which was previously only available in Wales and Sheffield. This is now being used nationwide. The service is aimed to relieve the stress felt by both parties when long-term sickness or absence is a factor.

Education to a higher age – 2015’s changes to the Education and Skills Act 2008 will see the legal age at which a person can leave education increase from 17 to 18, any person below that age must be in some sort of learning or training programme.

These changes to the law could go on to influence aspects of recruitment. For example, adding an extra year of compulsory education for young people could see a rise in applications for apprenticeships for those who do not wish to remain at secondary school or sixth form college for another year.

The Fit for Work service could also see more people encouraged to get back to work after a long period of absence; this may mean an influx of older workers who have missed out on various learning and development programmes during their years off retrain and return to employment.

Improved Ways to Find Staff and Employees

The aforementioned changes coming into place at various times of this year could be a call to action for many businesses and recruiters who will be forced to update their strategy in order to attract the right kind of talent. Research from global management consultancy Hay Group shows that something as seemingly simple as a job description could be getting in the way of hiring the right people.

Their research demonstrates a link between poorly written and blurrily defined job advertisements and weak talent pools and vice versa. In fact, 68% of HR managers agreed that a bad job description attracted poor candidates, and 51% said that a weak job advertisement has directly influenced a new hire leaving upon realising the job was not what they first thought. In support of this argument, a huge 86% said they though better descriptions engaged better candidates resulting in more suitable hires. However, it appears as though this knowledge is not actually having an effect on how job descriptions are written, with 42% saying their organisation’s advertisements are not written as well as they could be.

Excite and Engage

In terms of recruitment methods, looking at the law changes in conjunction with the research from Hay Group can help define what needs to be done to improve talent pools.

If the Fit for Work service manages to influence a new wave of older workers returning to jobs after a period of absence for example, then job advertisements targeted at them must include language they will understand in spite of their time away from the workplace.

The necessity to pool better talent to avoid the costly problem of rehiring is at the forefront of many company’s collective minds. It is more important now than ever to ensure that the best possible person is hired. This means putting more weight on how a job advtertisement is crafted, distributed and handled.

"adding an extra year of compulsory education for young people could see a rise in applications for apprenticeships"