Thirty Percent of Companies Favor Contractors in 2024

32% of UK Firms Going Full‑Bleed Contract Mode – Bonuses for the IR35 Switch-Up

A fresh twist in hiring

Robert Walters just released a eye‑popping report that shows almost a third of British companies are jacking up contract hires this year. What’s even hotter is that 29%* of them are feeling the buzz from the upcoming IR35 offset rule – a policy that’s supposed to make temp work a little more attractive.

Why the shift?

Budget tightening: Companies are treading lightly on their payroll budgets and looking for a quick pivot.

Staff crunch: Streamlining headcounts left gaps that can be filled with firm‑flexible, skills‑only labor.

Cost‑saving vibes: The ability to avoid permanent hire costs feels like a treat for tight‑skinned CFOs.

Market looks strong

Not the sole source of good news: KPMG & REC’s January review spotted a steady uptick in demand for temporary talent across the private sector as 2023 wrapped up. That steady swell bodes well for a jam-packed hiring season ahead.

A word from a leader

“The tightening budget, fewer permanent slots, and the pull‑regulation on IR35 are nudging employers toward a skills‑first temporary workforce,” notes Lucy Bisset, Director of Robert Walters UK.So if you’re building a team, strap in; the temp wave is rolling in—ready to boost flexibility and keep costs in line.

Talent pool increases for in-demand skills

Who’s Hiring? A Quick Peek at the Job Market Buzz

In the whirlwind world of tech hiring, employers are pulling out all the stops to fill specialist roles. The latest numbers are flipping a good show:

IT: A DevOps & Project Management Surge

Contractor job ads for DevOps and Project Management are up by a whopping +33% year‑over‑year.
That’s a one‑third jump faster than last year’s average growth.

Finance & Accounting: Business Analysis Still Trending

Contract roles in Business Analysis have climbed by +25%.

Industry Voice

“We are seeing encouraging growth in job ads for niche technical skillsets – reflecting wider market demand and showing employer’s need to quickly address skills shortages in the current dynamic hiring market.” – Lucy

So whether you’re a DevOps wizard, a project‑management maestro, or a sharp‑looking Business Analyst, the job board is humming louder than a coffee shop on a Monday morning. The demand is clear: expertise is in high‑flights, and employers are sprinting to meet the need. Keep your skills polished, and dive in – the hiring crowd is all in!

Upcoming offset rule

New Offset Rule: What It Means for Employers

Did you hear the latest? Over a quarter of employers—about 29%—think the upcoming offset rule will push them to hire more contract workers. Yet, roughly 40% of them are still on the fence, scratching their heads on how this rule will shake up their operations.

Let’s break it down: starting April 6, HMRC will let you magically offset the taxes you’ve already paid on a contractor’s behalf against the PAYE burden you’d usually claim from the client (typicals are recruitment agencies or the actual end‑customers). In plain English, this means no more double‑taxing your staff—finally! > 1.5

Why Employers Care

Cutting Costs: Fewer redundant tax charges mean more dough to spend on great talent.
Clearer Compliance: If the rule is straightforward, there’s less paperwork and fewer headaches.
Talent Flexibility: With double taxation walled off, hiring contract workers becomes a sweet, risk‑free option.

Lucy’s Low‑down

Lucy throws a timely reminder: “Gaps in knowledge or confusion surrounding the new IR35 rule present a huge challenge to employers trying to plug pressing skills gaps. It is important now more than ever for employers to educate themselves on the upcoming changes in order to not miss out.”

Bottom line: Grab some coffee, lean into the new rule, and sail over to the contract job market without the fear of paying the same tax twice.

Challenges for hiring contractors in 2024

Hiring Contractors in 2024: The Two‑Headed Beast

Picture this: one‑quarter of employers are shaking their heads at compliance and regulation headaches, while 41 % are wrestling with the same old skill‑gap bug.

Lucy’s Take – Compliance is a Party Pooper

“If rules come at you like a wallop, contractors are basically a no‑go zone,” Lucy says. “You gotta get cozy with the legislation.”

But the Skill Crisis is the Real Bouncer

Stranger than expected, +16 % more firms say the tough part isn’t the paperwork, but the talent hunt. Here’s Lucy’s game plan:

Clear job specs: list every required skill from the get‑go.
Fast‑track hiring: keep the process under a two‑week sprint.
Pay what they’re worth: competitive day rates win hearts.
Quick skill test: a short assessment can cut the noise.

Strategic Hires: The “Temporary Game”

“In the UK’s ever‑moving market, the smart play is a strategic hire – contractors can be the sudden hack you need,” Lucy notes. Even with inflation and interest rates sliding toward year‑end, the best move is to close skill gaps now.

Getting specialised help on a project‑by‑project basis can turbo‑charge your services without breaking the bank.