Recruitment Services

The Scottish Government’s Fair Work First policy sets expectations for public contracts, including that workers are paid at least the real Living Wage, that zero-hours contracts are not used where avoidable, and that workforce equality is actively promoted. When commissioning recruitment services through this framework, Scottish landlords can incorporate Fair Work First criteria into their call-off specifications, both for the agency’s own workforce and as a condition of the candidates they supply. This is particularly relevant for Lot 1 managed service arrangements where the supplier is effectively managing a significant portion of your contingent workforce. PfH Scotland can advise on how to structure these requirements proportionately and in line with current Scottish Government guidance under the Procurement Reform (Scotland) Act 2014. 

Protecting Scotland (Protection of Vulnerable Groups (Scotland) Act 2007) requires that anyone working in regulated work with children or protected adults holds a current PVG Scheme membership, not just a standard Disclosure Scotland certificate. This is a distinct requirement from the DBS checking regime in England and Wales. For housing associations with supported accommodation, sheltered housing, or care-at-home services, PVG compliance is non-negotiable, and any recruitment supplier placing workers into regulated roles must have robust processes for verifying and managing PVG membership. When specifying requirements through this framework, members should be explicit about which roles fall within the definition of regulated work under the 2007 Act and what evidence of compliance they expect suppliers to provide and maintain throughout the placement.

The introduction of the Building Safety Levy and the increased regulatory scrutiny following the Grenfell Tower Inquiry have driven significant demand for building safety managers, fire safety officers, and asset management professionals across the UK. In Scotland, the Housing (Scotland) Act 2006 Repairing Standard and the duties on registered social landlords under the Scottish Housing Regulator create their own compliance-driven demand for qualified staff. The labour market for these specialists is tight. Lot 1 managed service suppliers and the specialist agencies on Lot 2 have established networks in this space, and some suppliers operate nationally, which is useful for Scottish landlords who may struggle to find qualified candidates locally. When specifying through this framework, it’s worth including interim and fixed-term options alongside permanent to give you flexibility if a permanent hire takes longer than expected. 

Supported housing, very sheltered housing, and care-at-home services all create recurring demand for short-notice cover, whether for planned annual leave, sickness absence, or unexpected vacancies. The talent bank technology in Lot 3 is particularly well suited to this use case because it lets your own hiring managers directly access a pool of pre-qualified workers without routing every booking through an agency. Over time, as your talent pool builds, the cost per placement tends to fall compared with agency fees on every hire. That said, building a talent pool takes time and active management. If your immediate priority is filling gaps now rather than building a longer-term capability, Lot 1 or Lot 2 may be the better starting point, with a view to transitioning to talent bank technology once you have more organisational capacity to run it. PfH Scotland can help you think through which approach fits your current situation. 

Since April 2021, public sector organisations in Scotland have been responsible for determining the employment status of contractors and off-payroll workers under the off-payroll working rules (commonly known as IR35). Where an interim worker is engaged through this framework and their role would be classed as employment if the agency were removed from the arrangement, the landlord is responsible for deducting income tax and National Insurance at source. Getting this wrong carries financial and reputational risk. Before engaging interim or contractor staff through any lot on this framework, members should have a clear process for assessing employment status, and the recruitment supplier should be able to support that process. PfH Scotland recommends taking independent tax advice on your IR35 obligations if you don’t already have an established process in place. 

Under the Procurement Reform (Scotland) Act 2014, contracting authorities must consider how their procurement activity can improve economic, social, and environmental wellbeing. For recruitment, this might mean prioritising local sourcing to support employment in the communities you serve, requiring suppliers to commit to diverse candidate pipelines, or building apprenticeship and trainee pathways into managed service arrangements. Suppliers were assessed on social impact as part of the quality evaluation at tender stage. When running mini-competitions, members can go further by specifying measurable social value outcomes relevant to their own communities and reporting requirements. PfH Scotland can advise on how to structure these commitments in a way that’s proportionate and auditable.