2 November 2023 The Evolving Landscape of Tech Contract Recruitment in the UK in 2024 The UK's tech contract market is evolving! Stay ahead in 2023 with these key strategies for success. Shoaib Qureshi Resourcing Contractors Resource Management In the fast-paced world of tech, adaptability isn't just a buzzword; it's a way of life. Hiring contractors for your tech projects in the UK is no exception. The tech contract market in the UK is undergoing a transformation, with several emerging trends and shifts that hiring managers and recruiters need to be aware of in 2024. In this article, we'll explore how the tech contractor landscape is evolving and provide guidance on how to adapt your approach to stay ahead in this dynamic environment.Fewer Applicants, Higher Quality CVsOne of the significant changes in the UK contract market is the decreasing number of applicants. While this might sound concerning at first, it's essential to note that the quality of CVs has improved. As tech hiring managers, you may find yourself sifting through fewer resumes, but the candidates you do encounter are often more experienced and skilled, making the selection process more critical than ever.According to a recent article on Contractor UK, "IT contractor demand fell unexpectedly and erratically in September 2023 – so much so that it stopped growing entirely and is now shrinking." This trend underscores the importance of finding the right fit for your tech project, rather than simply filling positions.KPMG’s Claire Warnes says the UK economy appears to be facing “long-term” issues like “skills shortages across a range of sectors”, notably “ permanent IT staff” with as many as 17 tech skills “in short supply” for full time IT positions, 5 of which are also scarce in the IT contractor market: Cyber security, Developers, Software Engineers, and IT and Tech generalists. The remaining 12 sought after tech candidates only scarce to the full time market include AI developers, Analysts, CAD, Cloud engineers, CNC, Data scientists, Front End developers, Media, Software, Tech Leaders, Tech Sales and Tech support.Shorter Contracts, Higher RatesTech contractors in the UK are increasingly opting for shorter contracts. This shift is driven by the desire for flexibility and the ability to work on a variety of projects. While longer-term contracts are still available, hiring managers should be prepared for more candidates seeking shorter commitments. To secure top tech talent, be ready to offer competitive rates and appealing project scopes. IR35 and Regulatory ComplianceIR35 regulations continue to impact the tech contract market. These rules, designed to address tax evasion in the contractor market, require hiring managers to carefully assess the employment status of their contractors. Ensuring compliance with IR35 is crucial, as non-compliance can result in significant financial penalties. The Rise of Remote WorkThe COVID-19 pandemic accelerated the adoption of remote work, and the tech sector is no exception. Tech contractors increasingly seek remote opportunities, enabling them to work for UK companies from anywhere in the world. Embracing remote work not only widens your talent pool but also aligns with changing contractor expectations. Automation in Resource ManagementManaging tech contractors is becoming more automated, thanks to the rise of sophisticated project management tools and platforms. Utilising these technologies can streamline the recruitment process, improve communication, and ensure project success. It's crucial for hiring managers to stay up to date with the latest resource management tools and adapt to these changes.Changing Contractor ExpectationsContractors today expect more than just competitive compensation. They seek opportunities for skill development, career growth, and a healthy work-life balance. To attract and retain top tech contractors, hiring managers should be prepared to provide a comprehensive package that goes beyond just the financial aspect.The tech contractor market in the UK is ever-evolving. As the landscape changes, hiring managers must adapt to these shifts to secure top talent and maintain project success. Keeping an eye on emerging trends, staying compliant with regulations like IR35, and embracing remote work and automation are key strategies to navigate the evolving tech contract market effectively.To excel in tech recruitment in the UK's contract market in 2024, hiring managers should remain agile, responsive to change, and focused on quality over quantity.Hire with Hubbado
