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Stuart Gentle Publisher at Onrec

Recruitment Spotlight: “Nothing Gets Done Without Recruitment”: Neil Carberry OBE on Policy, Productivity and the Future of the UK Labour Market

As CEO of the REC, Neil Carberry OBE sits at the intersection of policy, productivity and people. We spoke to him about regulation, skills, AI, recruiter reputation — and what really needs to change in 2026.

Q.  As CEO of REC, you're the voice of the UK recruitment industry. What’s the biggest message you're trying to get across in 2026? What should the public - and policymakers - really understand about recruiters?

That nothing gets done in this country without the work of recruitment, staffing and talent professionals. Client businesses undervalue the benefits of getting staffing right to their growth – that’s a big part of the UK productivity gap. Better buying, on value rather than just price and using great advice could be transformational. Likewise, policymakers too often view temporary or contract labour as “filling in when someone is off” rather than a core part of the growth model that gives BOTH workers and companies what they want and need.

Q. You’ve been a vocal advocate for raising professional standards in recruitment. Where are we making progress, and where are we falling short? Has the industry matured?

I think the industry has matured. Relationships between REC members are more strategic than they have ever been. We’ll always be competitive, but on the areas that are in all our interests I think there are some interesting discussions opening up. With the march of tech and client pressure, how we compete is changing for instance – recently we had a great discussion amongst people leads in members about the skills deficit this is creating and how we address it, as individual firms and collectively.

Q. What do you see as the biggest regulatory issue facing recruitment firms today? Where should agencies be paying close attention?

Immediately, the challenge of payroll compliance, especially in regard of the umbrella liability changes. Perhaps with the SSP Day One change in April for added flavour. In the longer run, we (the REC) have to get the guaranteed hours/zero hours sections of the Employment Rights Act implemented in the right way – otherwise it could put a chill on lots of hiring, especially for temps.

Q. We’re hearing a lot about skills shortages. From your perspective, is the UK labour market structurally broken - or just evolving? And what’s recruitment’s role in fixing it?

The labour market is a huge strength of the UK economy, and preserving its flexibility is essential to maximising growth and opportunity. That starts with accepting people want to work in different ways. But there are two things I would change. Firstly, government needs to make non-compliant firms’ lives more difficult, and compliant ones easy. I am afraid the opposite has been happening for too long. Then secondly – and here is where we can make a huge difference – is strategic thinking about hiring. I worry a lot about pathways to work for our young people right now, as job search is a pretty dispiriting process for them. I recently visited the West London Youth Zone, and it confirmed what I know from my work with secondary schools as a MAT Director – the kids are alright, we need to give them chance. Recruiters can help. 

Q. What are your thoughts on AI and automation in the hiring process - hype or help? What should recruiters be embracing (and what should they be cautious about)?

At the moment, I see AI as mainly changing performance in back office areas like finance and LLMs bringing drafting improvements and labour saving across the board. But there is so much more to come. My advice would be that building understanding on your team matters, and then firms should use this to engage – starting with where tools like excel might be replaceable. Firms should run towards it – not away – as adoption will be essential. But in doing so remember that your current software provider is likely developing things, and we should remember that it should always be solving business problems! Explore, but keep your wits about you!

Q. Recruiter reputation is a constant battle. What can agencies and consultants do to build real trust with candidates and clients? How do we shift perception?

At the core, do the job well, with high levels of service and customer focus. Then make the case, with us, on the difference getting the people stuff right makes. I think some of the reputation concerns come from the structural undervaluing of management in UK business – which leads to out productivity gap. We can change this over time, but working together to demonstrate what can be delivered when it is got right. This is a key REC campaign for 2026.

Q. With economic uncertainty still in the mix, how should recruitment businesses position themselves for resilience? Any advice on balancing growth and caution?

Knowing your client matters more than ever right now. If you have that in a clear view, it will give you clarity on the amount of stretch to give yourself. And contingency plan. As the “What If?” question – plan for time to ask yourself “What am I missing?”. All this helps, but each firms’ circumstances will be different.

Q. What’s the role of trade bodies like REC in shaping the future of work? Is your role becoming more important than ever?

I see my job as helping members find their path in a changing market – so understanding and shaping those changes matter. The REC is uniquely positioned at some of the key tables for this – for instance we were the only trade body from the sector involved in the negotiations on unfair dismissal before Christmas. Our role is to take the understanding we build and bring it home to help members run their business and grow.

Q. How do you think the recruitment industry is doing in terms of diversity and inclusion - and where’s the biggest room for improvement? What’s next beyond the tick-box?

As a sector, we are very diverse. But we need to be better than most – as advising clients requires having our own house in order. I think there are some great practices in the industry now – but the variance is too wide. The key thing is making sure that people understand that the domestic labour force is shrinking, that younger demographics are smaller and more diverse, and that people are increasingly choosing roles on values. This is commercial – not something to do on the side.

Q. You speak to firms of all sizes - from start-ups to enterprise. What separates the top-performing agencies from the rest? What are they doing differently?

Effective client and candidate relationships. They lead with their insights and create moments of connection. Clients will talk to people thinking about the problems they have more readily than people hawking for work.

Q. What advice would you give to someone stepping into their first leadership role in recruitment? What’s helped you most in your own career?

Remember that the first 100 days stuff is about long-term success, not short-term impact. Watch, analyse, plan. It’s not all about you. Build the change you need over time.

On the way home one night on the train, in the first couple of months, you’ll sit there and think. “What the hell am I doing?”.  You should. There is always risk – but trust your judgement.

Make the main thing the main thing. That’s help me most. As a leader you don’t have to take a role in everything.


Quickfire Round

Most overused buzzword in recruitment? AI – it really matters, of course it does, but its about how it solves your business problems not just having it.

One policy change you'd implement overnight? The 2025 NI rise (especially the change to the threshold).

Your go-to leadership quote? KBO* (Winston Churchill) – the ruder version of his advice on keeping going at the target and not getting distracted by the next thing... *Keep Buggering On

Biggest misconception about the REC? That we are just about training and lobbying – though we are great at both!

Coffee or tea in the morning? Tea. One coffee a day, when I get to the office.

Best interview question you've ever been asked? How do you ensure a strong relationship with people who have responsibility for your work, but no direct power over it?

One thing you wish every agency owner knew? The value they could drive from their REC membership.

Favourite place to switch off? I wouldn’t say “off” but Tynecastle Park is where no-one can reach me.

In three words: the future of recruitment is... Exciting. Strategic. Different.

To reach out to Neil, follow him on X and LinkedIn