There isn’t a day that goes by without Brexit being the main focus on the news, so much so, it’s leaving other pressing priorities out of the limelight. The IR35 legislation is due to take effect in April 2020, however experts now discuss that it should be delayed to 2021 as businesses simply won’t be ready to cope with the changes with how things currently stand in parliament.
Recruiter magazine spoke to a number of recruitment leaders to hear their opinion on the current state of affairs and it’s impact it is having on the recruitment sector…
Simon Winfield, Managing Director, Hays UK & Ireland.
“Like many others, we’ve put even more emphasis on making sure we are running our own business effectively. However, Brexit uncertainty has worryingly distracted the government from addressing some of the issues that are having a material impact on business and recruiters.”
“The Apprenticeship Levy is in need of a fundamental redesign and IR35 has the potential to alienate workers, particularly in the tech industry, at a time when we should be doing more to attract and retain talent. There are big national issues at stake, which aren’t getting the attention or support they warrant and it’s unlikely we’ll see this change until there’s greater political certainty.”
Ricky Martin, Managing Director, Hyper Recruitment Solutions (Former Apprentice winner).
“It has picked up pace as the competition for talent increases and the feeling of security to appoint EU workers pre-Brexit is felt (not that we really know the reality post-Brexit). That said, it is apparent that more EU workers outside of the UK are playing a more conservative approach to moving pre-Brexit and adopting a ‘we’d rather wait and see’ [approach]. The by-product of all this is a market with an increased need for talent, and the need for smart recruitment and more tailored services more apparent than ever. The government in my opinion is an absolute shambles and as each day goes on, with their lack of execution, the worse it will be for talent.”
Albert Ellis, CEO, Harvey Nash
“In fact, companies have stepped up spending on tech per our latest survey. The challenge is candidates are proving much more difficult to manage. The premiums offered to resign and join a new organisation aren’t high enough. I believe it’s risen from say around 10-20% to 20-30% to secure a strong candidate. As risks rise, so does the risk premium for a hirer.”
“Counter-offers are now rife, as companies use this tool to persuade staff who have another job offer to stay. A new trend is that companies are enforcing notice periods because they are thin on resource, so can’t afford to let staff who have resigned go early – another counter-churn factor dragging the process out over longer periods.”
“IR35 has also switched demand from contract to perm and introduced a regulatory and tax risk into the process, further stalling the market. Having said all that, our trading is well above what one would expect in a period such as this. And this is down to strong secular demand for tech and the acute skills shortage made worse by slowing immigration.”
STAY UPDATED ON BREXIT
With Brexit still very much up in the air and mixed opinions among the recruitment industry, TBOS recommends you stay up to date on Brexit by visiting gov.uk/Brexit, there is even a short survey you can take which will direct you to some answers. Additionally, there is an option to sign up to their mailing list to receive updates straight to your inbox.