Pension worries for work agencies

A South Yorkshire recruitment specialist is warning of problems caused by pensions reforms.

Greg Parkinson, managing director of Elevation Recruitment, has welcomed a Work and Pensions Committee inquiry into automatic enrolment for workplace pensions, and problems the latest pensions reforms create for recruitment agencies placing temporary workers.

For the purposes of the pensions legislation, recruitment agencies are considered employers, although their role in the labour market is to act as an intermediary between clients and recruitment candidates – a vital service for many business sectors.

Mr Parkinson said: “As recruitment specialists, our industry is vital to the economy in the way it enables employers to find and place skilled temporary workers – essential to maintaining a strong, flexible commercial operations platform for most blue-chip companies.

“However, recruitment agencies have to comply with new pensions guidelines, which are particularly complex, and are likely to impose operational problems for what is a crucially important sector within the economy.”

He added: “The industry widely feels that it is important that Government decision-makers recognise the potential upheaval and administrative burden that auto-enrolment creates for recruitment agencies.

“This can only impact upon normal business administration to create an additional level of bureaucracy which adversely affects the normal business of helping clients to find key candidates and securing job opportunities for workers.”