It’s no secret that hiring permanent employees in the IT sector has become a big problem.
Many companies have held fire on their recruitment for the past two years. Now that the pandemic is largely over, everyone’s raring to go. There are half-finished projects to complete, clients to win, new projects to get off the ground – but where’s the talent? Why exactly is it so hard to fill perm roles?
For companies, the impacts are severe. From day to day operations and resources to business growth and revenue – the IT talent gap is hurting every aspect of running a business. And hiring perm employees is not going to get easier any time soon.
Here’s the full lowdown – and what you can do about it…
- Want to solve your recruitment problem? Read our guide on navigating the current market and finding the talent you need.
What’s the problem?
The two big issues: Covid and Brexit
What we’re currently experiencing in the IT job market is the perfect storm. The two main factors creating this perceived talent gap are Brexit and Covid.
“Everyone wants IT workers, and there aren’t enough to go around”
When we left the EU, we reduced our stream of skilled IT workers. At the same time, the end of Covid meant everyone decided to recruit at the exact same moment. These two concurrent shifts have caused an extreme supply and demand problem: everyone wants IT workers, and there aren’t enough to go around. And other factors are exacerbating the issue.
What are employees doing?
Employees have had a rough couple of years. Some will be disheartened by how their companies handled the pandemic, and others may simply be in a different headspace now. Many want to continue working how they did during the pandemic – fully remotely or more flexibly. Others want a change but aren’t sure if now is the right time to make the leap.
The scramble to hire – and keep hold of talent – leads to overinflated salary offers. This, in turn, is causing further stasis. With employers trying to outbid each other, what do you do as an employee? You might be ready to leave, and then you’re offered another £10k. Should you stay or should you go?
The overall effect of all these elements is a job market that’s oscillating rather than moving. Meanwhile, companies are spending huge amounts of time and money on recruitment – which in many cases doesn’t even lead to a hire.
- Our guide includes everything you need to know about the current market, filling your talent gap, and IR35. Read it here.
The end result
We all know the end result – and it’s not a happy one. You can’t get projects off the ground – or complete the ones you’ve started. Internal change and transformation is put on pause. And you can forget about trying to win new clients. In short: you can’t achieve the growth you’ve planned without the right talent in place.
The cherry on top is that recruitment costs you more than ever before. What’s the solution? We’re glad you asked…
What’s the solution?
Contractors
Contractors are quick to hire, highly specialised, and adept at hitting the ground running. We have many skilled IT contractors in this country, ready to come and plug your gap.
In two weeks, you could have the talent you need to work alongside your perm employees and keep your company moving forward. When you compare that to how long it can take to hire for a perm role (anywhere between 3 months to a year), it’s a no-brainer. So what are you waiting for?
The obstacle
If you’re screaming “IR35!”, we hear you. Of course, pre-IR35, things were simpler. You paid your contractor their day rate, which was the end of your responsibility. Now, when you hire a contractor, it is your job to ensure compliance with IR35 rules. Too much of a headache, right?
The good news
The truth is, IR35 is not as scary or insurmountable as it first seems.
Inside IR35 means your contractor would be paid as an employee on payroll, with tax and NI deductions applied. Outside IR35 means they’d be paid as self-employed: you pay a day rate and leave the rest to them.
Determining which category a contractor falls into, comes down to how much responsibility they’re given, how projects are managed, and how independently they work. To be deemed outside IR35, they need to be providing a service based on deliverables, working with no guidance or management.
If you want to know precisely how to determine IR35 status, our guide will tell you everything you need to know.
The great news
With a bit of a pivot, the current recruitment problem can be turned into a golden opportunity. While everyone else is out there battling for perm hires, paying over the odds (and tearing their hair out), you can find the talent you need to keep your company pushing ahead. After all, what’s the alternative?
With a market that will not change for the foreseeable future, standing still could cost your business dearly.
“Standing still could cost your business dearly”
If the only thing stopping you from using contractors is IR35, we have all the tools to take that problem away. Whether you need help with determining tax status, finding the right contractors or managing your hires, our Contract Complete IR35 solution covers everything from setting up payroll and setting deliverables to navigating insurance, reviews and appraisals.
As Einstein said: the definition of madness is doing the same thing over and over and expecting different results. It’s time to try a different approach. In a tough recruitment market, those who are willing to change direction could turn a problem into a brilliant opportunity. While everyone else struggles to fill perm roles, hiring contractors will allow you to press ahead with your plans and achieve new growth.
