Market Update: Where are we Post-Brexit?

The results of Markit’s recent PMI (the Purchasing Managers Index) survey has the put the minds of the British public at ease (for now) as the unexpected rebound of the service sector adds to a string of positive market news on exports, jobs and houses.

Markit recorded the biggest month on month increase in the survey’s history and shows figures increasing from 47.4 in July to 52.9, far exceeding the 50 mark needed for growth.The service sector makes up a staggering 80% of the UK economy

 

From these results it is now clear that Britain will avoid the expected recession many thought would follow after the June's historic vote.

"The services PMI completes a triple-whammy of good economic data for the UK in the last three trading sessions and indicates that businesses are returning to normal after the initial shock of the vote rocked confidence," said Neil Wilson, a financial market analyst at ETX Capital.

 

Britain’s economic situation is looking brighter with the value of the pound going up on a seven week high against the value of the dollar - $1.3375, and the value of the pound beginning to steady.

Credit Suisse and Morgan Stanley have both 'rowed back' on their predictions after the better than expected results. Bank of England Governor, Mark Carney, has described himself as feeling 'absolutely serene' with the banks preparations and actions which he says allowed Britain's economy to 'sail through' the shock impact following the referendum.
 

The City of London, however, is not sitting on its hands and has already stepped up lobbying efforts with the new Chancellor Philip Hammond to ensure that processes are not rushed and to stress the importance of access to the single market. The Financial Services industry accounts for more than 12% of the UK's exports, contributing £60 billion in tax and employing 1 million people.

How are the Big Four after the Brexit vote?

Deloitte

Deloitte’s UK revenues have grown at the fastest rate in a decade, according the latest figures.The company experienced a “landmark” year in Scotland, strengthened its Transaction Services practice in the North of England and Group revenue for Deloitte has increased by 11.2 per cent for the year to May 2016 to £3.1bn.

Managing Partner, David Sproul, has suggested that the government should not reduce hiring skilled migrants: “The government must recognise that further restricting skilled migrants could be detrimental to the UK’s ability to attract global investment and the diverse pool of international talent that has supported our country’s growth”.
 

KPMG
 

KPMG continues to be the preferred UK's auditor for stock market clients, having created six new contracts in the last quarter. The Head of KPMG's deal advisory practice in the Midlands has stated that there is still a healthy appetite for deals in the region describing the environment as conducive.  

 

PWC
 

PWC remains in second place behind KPMG with 369 total clients and has come out confidently stating that London's dynamism means that it would remain agile and resilient to any potential fallout from Brexit and that the City had managed to  'pull away' from other global rivals this year.
 

EY
 

 EY has noted the opportunities for businesses that will come as a result of any renogiations and has stated that due to UK's strong performance in the past year it has retained it's spot as the number one place in Europe for foreign investment.

 

The future is looking a lot brighter than many experts initially thought, we now await to see how the new government intends to take Britain forward.
 

If you'd like to hear more about our market updates then register for our newsletter by emailing pmcloughlin@thinkgr.com.

Think Global Recruitment’s Summer Olympics 2016!

Team building days are never fun? Well they are when Think Global Recruitment does them!

On Friday we set off in our minibus towards an unknown location, a secret brilliantly kept for a number of months by Abigail & Katie. We arrived in our location at 10am…the Peebles Hydro Hotel! An impressive country house hotel situated amongst the breath-taking views of the Peebles countryside.

 

Our day started with a recap of the year, congratulating our team on their achievements and mapping out our goals for Year 17. We discussed our exciting new upcoming projects which including our new website, CRM and phone systems.

Then it was time for lunch, where Think Global Recruitment did not fail to impress. A barbeque buffet was arranged for the team including a mouth-watering mix of meats and salads. We were also spoilt for desert which included Pavlova & cheesecake. After leaving the dining room with heavy stomachs we continued back into our room where the real surprise awaited.

An instructor informed us of the afternoon’s activities, Think Global Recruitment’s very own Olympics! Teams were set out- senior staff vs the rest of the Think Global Recruitment office.  

Outside it was raining but that didn’t stop the team. First up, bubble football! Both teams went at it bouncing off each other and falling to the ground. The senior staff took the points with three goals to nil, leaving them with the first round victory. Then there was the Bubble Off between Peter and Kevin, with neither able to knock the other over until they both collided, falling over after a double charging run.

Next up, archery & shooting. Both sides we’re determined to win with the rest of the office buoyant by the fact they had a former marksman in their team. After a few John Wayne-esque shoot offs and rather dubious arrow shots, the teams went back inside with the scores tallied for revealing later on.

Back in the hotel our percussion skills were once again put to the test with several rounds of laser quest. Various group tactics included illegal use of hands covering the head strap, shooting from behind curtains on the stage (out of bounds) and hiding a person under a person under a piece of blow up apparatus, all of which were adopted by the senior team. The rest of the office valiantly fought back to secure an overall win, leaving the scores level.

Back in the room the Olympics medal announcement was made…a victory for the senior team! Celebrations were had as the team collected their bottles of champers & Scotch whisky and everyone joined together for a drink afterwards in the lobby. Then it was time to head back to town where the team stayed out in typical fashion.

 

Another memorable team building day with Think Global Recruitment, geared up and ready for the new company year that lies ahead!

 

 If you would like to apply for a role at Think Global Recruitment please send your CV to pmcloughlin@thinkgr.com.

Don's Story: Old MacDonald has a farm- one man's life-changing move to Zambia

 

Don MacDonald, a man we assisted to move over 15 years ago, initially set out to live and work in Zambia on a two year contract, but after six months of living and working in Lusaka, his family decided that they were enjoying it so much that they wanted to stay. Recently we caught up with him to see how he has been getting on. Don thanks our Managing Director, Abigail, and Think Global Recruitment, (who he jokes are entirely to blame!). He says his experience exceeded his expectations far more than he could ever have expected.  He has lived in Lusaka ever since, working and running his charity 'Old MacDonald’s Farm'  with his wife Christine. 

So how exactly did Don discover the opportunity to work in Zambia?

“I was working in the Scottish government’s finance department when I came across a Think Global Recruitment advert for opportunities in Africa that would end up changing my life forever"

“During my lunch hour one day I rang up Abigail. In a quick turnaround between meeting Abigail at Christmas and by the first week of January, I had  been offered an interview in London with Deloitte where was offered a role in Lusaka”.

What is Don doing now?

Don is now working as the Managing Director of the airline service company, Zega Limited. Before working for Zega he discovered first hand just how many opportunities there are whilst working abroad.

“About eighteen months into my two year contract I was doing an insolvency review on Zambian Airways and found it had some problems. Three months later the chairman of the airline joked with me and said 'why don’t you try running it?' and that’s how I became the chief executive of a national airline!”

 

 Don grew the airline over the next four years, turning it around from making a loss to making a profit, which was a particular standout moment in his fascinating career.

“Having visited and being exposed to Africa before allowed us to settle in pretty quickly, especially due to it being an English speaking country with a lot of English people”. Don had no concerns before making his international move. “Everything that you might need could be found in the capital city and with great international schools for both of my daughters we had no problems”.

So what does Don think are the advantages of moving overseas?

“The opportunity to advance your career quickly. Within a short space of time, I became the CEO of an airline and you can move faster up the ladder than back home. And of course, the weather is so much better over here”.

What advice would Don give to accountants that are thinking about working overseas?

“Go for it! I’m glad every day I did it. You only live once and it is definitely worth going for. There are huge benefits to the experience and it's important to remember you don't have to commit life where ever you go."

During his fifteen years in Zambia, Don and his wife looked to give back to the community which embraced them so warmly, which is when they decided to start up Old MacDonald's Farm.

Old MacDonald’s Farm

 

One day back in 2001, Don and Christine began helping street kids, inviting them in every Sunday for a shower, a home cooked meal and to get some clean clothes. Noticing that there we so many street kids in the local community, they felt something needed to be done to help. Little did they know that their family would extend when an ill young boy became a permanent part of their family and soon enrolled in the nearby school. Old MacDonald’s Farm was born and has since combined several projects on the same site, allowing the opportunity to house more kids in Old MacDonald’s Children’s Home; educating them on lots of matters from conservation farming methods to providing schooling from the on-site school. Over the years their family has been growing and growing with the addition of more young boys staying with them and at one point they had 40 extra children!

After listening to Don's story it's hard not to be impressed by all that he has achieved. All of us here at Think Global Recruitment would like to wish him the very best for future and that the next 15 years are just as interesting!

 If you would like to find out more about the work of Old MacDonald’s Farm you can visit their website here: http://www.omfzambia.com

 

The Recruitment Industry takes the Brexit debate head on!

The recruitment industry is worth a valued £26bn a year to the UK economy. With the upcoming European referendum, businesses have been trying to constructively contribute to the debate and give analysis of what the impact might be. Reports from within the recruitment sector have been mixed, some worried about a potential skills shortage with others adopting a more relaxed approach.

The Association of Professional Staffing Companies (APSCo) has been representing professional recruiters since 1999.  APSCo has become a trusted badge of quality within the sector, with an increasingly international profile. For many years its trade delegations have supported the global growth of its member organisations. With the upcoming referendum British membership of the EU, APSCO produced a report on the issue to help inform its members.

Findings from APSCo Report (2016):

·     Two APSCo surveys, in the summer of 2015 and in February 2016, found that support for remaining in the EU had significantly dropped from 80% to 59%, suggesting a growing unease with the status quo

·     For recruitment firms, social and employment policy is one of the most controversial areas of EU competence. Agency Workers Regulations (AWR) and the derived Temporary Agency Workers Directive is viewed as inappropriate European legislation for many professions with ‘no corresponding positive benefits for the independent professionals placed’.

·     From a recruitment standpoint, the Services Directive is the most important concession from the Prime Minister’s renegotiations with the EU, allowing UK firms to get full access to the EU services market. The Services Directive would add 1.8% to overall EU GDP.

·     Any provisions for leaving the EU should be drawn up in consultation with the private sector to ensure that the UK is not left at a disadvantage compared to EU states in terms of competitiveness

APSCo Scottish Forum Debate

APSCo’s Scottish Forum made its own personal contribution to the issue by bringing the debate to their Glasgow meeting, hosting three prominent speakers: John MacLeod (ICAS), John Edwards (Scotland Stronger In Europe) and Iain McGill (business owner). The debate, chaired by Abigail Stevens, Managing Director of Think Global Recruitment, allowed three perspectives: neutral, for and against, with respective proponents providing their own analysis on the issue concluding with questions from APSCo members.

John MacLeod, Partner at Mazars UK, first spoke about ICAS’s official report and how their assessment concludes that rather than a factual decision, people will be heavily influenced by perceptions of subjective issues such as immigration, fairness and national interests. ICAS’s objective report gave an independent review of all of the key figures at play and can be read here. He stated that his job, as a neutral contributor, was sometimes the most difficult ensuring impartiality in all of the assessments.

With neutrality set aside, it then came time for the big debate. As people say that they want to hear the facts, without transcribing the whole debate, and to bypass the hyperbolic statements we have summarised some of the main points.

Four key points that can be concluded from the debate:

-      Three territories have left the EU or European Economic Community

Two territories, Greenland and Algeria, left the European Union’s predecessor, the EEC. The Caribbean Island of Saint Barthélémy withdrew from the European Union in 2012 and instead joined the Overseas Countries and Territories List.

-      Whatever the outcome we will have terms settled by 2018

Under Article 50 of the EU’s Lisbon Treaty, the UK will have two years to negotiate an exit, during which time its future relationship with the EU will have to be agreed. The UK would continue under the European Union until that time and by 2019 there will be some degree of certainty as to its position within the continent.

-      If the UK votes to leave, unelected European officials will still retain some power

The European Court of Human Rights will still have an ability to overturn the UK High Courts on social and employment issues as the UK will remain signed up to the European Convention of Human Rights. However, the unelected European Commission (Europe’s governmental cabinet) would lose its authority to create legislation.

-      It’s impossible to know the economic impact of an exit

Although this might not have a numerical weighting attached, it actually has more value than any of the campaign statistics. Since most of the economic arguments are based around future trade negotiations it would be impossible to determine what the economic situation post-exit would look like. There was mutual agreement in the debate that it would rely on a fair amount of ‘crystal ball gazing’ with both sides using alternative figures and experts.

As expected from these debates, it managed to result in more questions than answers. The purpose of this blog was to highlight some of the key issues to the recruitment industry and help assist in answering some of the uncertainties around the referendum. We hope that you have found this article useful and would encourage additional reading on the subject.

APSCo, ICAS, Mazars UK and Think Global Recruitment would like to confirm their neutrality on the referendum issue. Iain McGill was speaking in a personal capacity and John Edwards was speaking on behalf of Scotland Stronger in Europe. We would like to thank all those that contributed to this article through their reports or arguments.