End of the line for cold calling?

The Recruitment and Employment Confederation (REC), the industry body for the private recruitment sector, has been studying telemarketing restrictions that come into force on June 25 2004.

From June, businesses will be able to register with the Telephone Preference Service meaning they cannot be contacted via telemarketing. The changes could have a massive impact on service providers of all kinds, and on the recruitment industry in particular.

REC data confirms that demand for staff is continuing to increase at an unparalleled rate and recruitment agencies are operating in an increasingly fluid and fast moving labour market. As a result, regular telephone has been the main means of informing employers of available candidates.

The REC is particularly concerned that the new regulations may have a particularly negative affect on smaller agencies who do not have the marketing budget to raise general brand awareness and are therefore more reliant on telemarketing and cold calling.

However, the Government has decided that the freedom to cold call is superseded by the privacy of those in regular receipt of unsolicited direct marketing.

Tom Hadley, Head of External Relations at the REC says:

ìThe extension of the telephone preference service is a concern and we are working with members to examine the impact on current marketing strategies. However, there is a very tight labour market in the UK and companies increasingly recognise the importance of effective recruitment. Within this context, most companies will want to continue receiving information on suitable candidates, so itís not quite the end to telemarketing as we know it.î

Recognising that recruiters will be looking for other means to market their services, the REC is looking to provide advice to recruiters and is also thinking of increasing its networking events.

The REC is also updating its legal reference guide to ensure members are fully informed, and will be paying close attention to any proposals to extend the regulations to include electronic and text message communication with companies.