Exclusivity clauses in zero-hour contracts have officially been banned in the U.K., according to Startups U.K. Zero-hour contracts permit companies to hire employees without promising they will receive any hours, the B.B.C reported. The exclusivity clauses further prevented employees from signing on for another position while under contract with an employer. Some believe the change could increase the demand for recruitment services throughout the U.K.
How common are zero-hour contracts?
According to data from the Office for National Statistics, almost 700,000 people were employed on these contracts between October and December 2014. All in all, this adds up to 2.3 percent of the workforce who relied on these positions as their primary form of employment during those three months. Those employed under these contracts generally work 25 hours a week.
These contracts are often controversial because many people don’t believe they provide adequate employment. Banning exclusivity clauses could be a positive move for many employees because they will be able to seek other part-time positions to increase the number of hours they work. The change will likely be positive for recruitment professionals as well, because more employees will choose to sign up with an agency to find work, Recruiter suggested. In addition, employers may be more likely to use recruiting agencies to find talent as it becomes more complicated to find flexible workers through alternative means.
How recruiters can prepare
Recruitment agencies may need to prepare for a greater influx of applicants as well as a greater volume of clients, which means it may be time to upgrade to a more efficient applicant tracking software. The right technology can make all the difference when it comes to effectively connecting clients and talent. An all-in-one platform that combines applicant tracking with customer relationship management is the way to go. Better applicant tracking software enables recruitment firms to remain competitive and match job seekers to applicant needs more quickly.
The ban on exclusivity zero-hour contracts in the U.K. is beneficial both to employees and recruitment firms. As employers continue to rely on recruitment firms to fill talent gaps, the recruitment industry could become more competitive. The key will be for firms to differentiate themselves with better service. The first step will likely be awesome applicant tracking tools.
Jobscience | Beyond the Applicant Tracking System