Why Exclusivity Benefits You

It amazes me how many companies still think giving vacancy exclusivity to a recruitment consultant is to their detriment and only benefits the recruiter.

Their thinking typically goes along the line of ‘more recruiters means more candidate coverage equals a better shortlist’.

In a vast candidate market where industry-specific skills are not being sought that logic would be fairly robust, for example, if the business was seeking an Admin Manager.

However, house building recruitment is diametrically opposite in its characteristics. Supply of experienced candidates is very limited and industry experience is normally a prerequisite.

So here’s what happens when multiple recruiters get instructed on the same vacancy in house building:

  1. The recruiters know there are only a handful of potentially suitable and interested candidates so it becomes a race to get to them first and claim the introduction. This will always be at the cost of a thorough search of the candidate market and a full explanation of the house builder’s vacancy requirements to any prospective candidates. 
  2. Inevitably in a tight-knit industry, the recruiters will cross paths by calling the same candidates. Those candidates will be put off by recruiters competing for their attention on the same job. The last thing you want to do in a ‘skills short’ market is create barriers to potential candidates. 
  3. The recruiters will prioritise work they have exclusively over vacancies where they are competing at their own risk for a fee. The impact is time slips by as recruiters focus on another house builder’s vacancy first, leaving you with little or no progress on your recruitment.

So if you want to get the best from a recruiter, to fully search the market and maximise candidate interest, invest the time in selecting and engaging a consultant you really believe in. Then give them the work exclusively.

 

£1bn Housing Fund Launched

Barclays and Homes England have teamed up to create a £1bn lending pot for established developers looking to build new homes.  With almost two-thirds of all new homes built by the ten biggest developers, the intention is to encourage diversity by offering finance to small and medium-sized house builders.

The loans will be competitively priced and are available to non-Barclays customers with a view of helping house builders develop more sites and increase the housing supply in all sub-sectors – for sale, for rent and retirement.

John MacFarlane, Barclays Chairman said, “We are very pleased to be working with the government to get the country building more homes, more quickly.”

Housing Secretary, James Brokenshire added, “This is a fantastic opportunity to not only get more homes built but also promote new and innovative approaches to construction and design that exist across the housing market.”

Miller Homes is Growing

On the back of a significant private equity investment last year Miller Homes has posted good results for the half year to 30 June. Volume has grown 12%, average selling price is up 6% and revenue increase by 7%.

Having sold 1,492 homes this half year it remains on track to hit is 2021 target of producing 4,000 new homes a year.

Chris Endsor, CEO, added, “there are no signs that Brexit concerns are yet weighing on our customers’ minds it would nonetheless be welcomed to receive clarity as March 2019 fast approaches.” I think he speaks for the whole business community with that statement!

The Rightsizing of McCarthy & Stone

Retirement specialist McCarthy & Stone announced a new strategy last week which focuses on keeping volumes stable at just over 2,000 units per annum and cutting the cost base and improving return on capital employed.

Despite a strong need for retirement housing in the UK, McCarthy & Stone issued a profit warning recently which acted as a catalyst for the change in strategy and also a new CEO. Clive Fenton retires while John Tonkiss, formerly Chief Operating Officer, takes the reigns as CEO with immediate effect.

The new strategy represents a contrast from many of the volume housebuilders, each of which is pushing hard to increase profit through production growth. McCarthy and Stone are, instead, committing to an increase on ROCE to 15%, an operating margin in excess of 15% and £40m worth of cost saving all by the financial year 2021. The company’s output will remain steady at around 2,100 units per annum.