February has seen a major spike in hiring processes in the private sector across the UK. We are seeing the usual seasonal peak, but there is more on top of this.
Because of the slow performance of the hiring market in 2016, many projects were left floundering and short-staffed, both team leaders and those who hold the purse-strings understand that Brexit will not have an immediate effect on their workload.
Candidates and clients alike have been frustrated by slow and delayed hiring processes and this has become something of a pattern, clients are now more averse to this allowing for swifter processes.
We're seeing more contractor hires off the back of 'phone call only' interviews than we have in a while.
In terms of who's hiring and why this may be less visible - if we compare this month to February 2014, the major change is size of organisation. More and more small advisory firms, mid-cap investment houses and start-ups are hiring.
At the same time major global banking groups and FTSE 100 corporations are shrinking back - really only making replacement hires.
IR35 - An Exodus From Public to Private?
It's no surprise that there's a lot of discussion around IR35 given the recent petition and the governments response.
If you haven't caught up on this the major news was the Treasury attempting to justify why the changes are necessary by putting its notorious claim that 90% of PSCs are non-compliant with IR35 the other way around.
The Treasury said: “Currently only around 10% of people who should pay tax on at least part of their company's income under these rules actually do so,” phrasing HMRC’s oft-used statistic positively.
A former tax inspector was last night unimpressed, saying the statement that only 10% of contractors who should operate IR35 actually do so tells only part of the story.
Either way we're likely to see at least some movement from contractors in the public space, whether this will take the form a movement from LTD companies to Umbrella Co's or just a straight out jump to the Private Sector is yet to be seen.
We're keen to speak with anyone considering a move to the Private Sector, our client base has communicated that they are looking to capitalize on this.
Looking For A New Role?
If you were put off looking for a new Interim role in 2016 then this may be a good time for you to look around. Overall contractor hiring is up, budgets are being approved and there's an awful lot of work leftover from last year.
If you'd like to have an informal conversation just to discuss the market, feel free to give us a call on 0203 762 2025. Or alternatively send an email with your CV attached to firstname.lastname@example.org
After a fairly up and down market last year, we're seeing a decent spike in mid-sized companies bringing in ACCA/ACA/CIMA contractors to help with busy workloads.
So far this year we've been mandated by one of our larger Private Equity clients as well as a number of commerce & industry businesses.
As many know the lead-up to March is always a good time for these contractors, but the outlook is more optimistic than usual.