The Benefits of External Recruitment 

team smiling

The Benefits of External Recruitment

Top 5 advantages of getting an external professional

Rose McCarter-Field

By Rose McCarter-Field

What are the benefits of external recruitment? And what can you expect from an external recruitment agency that you can’t get in-house? 

Sometimes it is advantageous to seek specialist external resources to compliment your own. An external recruitment agency can provide an objective and impartial perspective on the recruitment process, allowing you to identify and target the right talent for your organisation. 

So, what can an external recruitment specialist do for your team? 

1

Time Saver

Your recruiter will run everything from job advert campaigns, to filtering candidates, to assisting with onboarding. This helps to streamline the recruitment process and ensure the right people are brought into your business.

Having external help can be a massive time saver for you and your HR team - freeing up more time for you to focus on the more important tasks. Not only that, but you can also take advantage of their expertise to ensure you get the most out of your recruitment process.

The important consideration here is that you choose a recruiter that will put the time in for you and work tenaciously to find the right candidate for you. Choose an external recruiter that takes the time to understand your needs from the outset. They will then save you time throughout the whole process because they already understand what you need from them.

2

Pre-filtered Candidate Network

Your dedicated external recruiter will already have a pre-filtered network of skilled individuals at their fingertips. By leveraging their existing network, you can reduce the amount of costly advertising involved and speed up the recruitment process.

In today’s competitive job market, having an experienced and knowledgeable recruiter on your team can make a big difference. A tenacious recruiter, like our Account Managers at Project Recruit, will have already taken the time to get to know skilled potential candidates. They may already have a few people in mind that turn out to be your next top team member.

3

Bring in Specialist Insights

Your external recruiter will utilise their specialist industry knowledge to provide bespoke job advertising campaigns to attract the right people, as well as a bespoke shortlisting procedure to provide you with the best candidates for your unique needs.

They will understand the terminology of your industry including the skills, the qualifications, and the experience required for different roles and tasks. A dedicated recruiter that specialises in your industry is essential for finding the right candidate. This is where bringing in specialist external recruitment assistance can be of great benefit to your current recruitment resources.

Do you have specialist roles to fill, such as cloud engineers, developers, or financial analysts? Or specialist skills you need to bring in, such as help desk support staff? Get in touch.

Get in touch to speak with a member of our specialist IT, data, and tech teams.

4

Expert Candidate Filtering

Your external recruiter will already be an expert in candidate selection in your sector. The right external recruiter will bring professional experience. Through tenacious searching and filtering, they will improve the quality of your candidates.

They are trained to assess candidates and experienced in finding the right fit for your company. Your external recruiter will seek out someone that will thrive in their new role.

4

Remove the Hassle from Advertising to Onboarding

Want to remove the painful process and time it takes to get a new recruit started in their new role? At Project Recruit we also offer Global HR. In instances where you already have a candidate and want them to work on a contract basis, we can get them up and running as smoothly and quickly as possible. Almost instantaneously. So that their payroll, time, and expense management is all ready to go, by arranging their payroll through Project Recruit. Then your new top talent can get started right away, wherever they are based in the world.

It is important to find the right recruiter to suit your needs. Your external recruitment specialist is there to find you the candidate(s) you need, in the time frame you require. A recruiter that truly cares about finding you candidates that will thrive in their role with you, will take the time to understand your needs from the outset. 

 Want to discuss a present recruitment need? For contract or permanent roles? Individual or team placements? Get in touch 

Our Services.

Feel listened to.
Know that your needs will be heard and met.

happy team

Global HR Solutions

Unmatched ‘white glove’ onboarding and tax compliant payroll service for your top talent.

new team

Project Team Recruitment

Need to recruit a whole team of high calibre staff? Need them to be onboarded fast?

Solar power technology team

Renewable Energy IT Talent

Get the best global Tech talent so you can scale your business in the Greentech market.

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Data Analytics Recruitment

Recruitment solutions for Data Analytics, Information Technology and Financial Services staff.

Technology staff looking at screen

Technology Recruitment

Recruitment solutions for Information Technology teams.

woman smiling

Multilingual Recruitment

Recruitment solutions for Multilingual resources.

Responsible Recruitment

Recruiters that listen to you and understand your needs.

External Recruitment Methods 

Project recruit and payroll team coworking

External Recruitment Methods

How to find a recruitment company that puts you first.

Rose McCarter-Field

By Rose McCarter-Field

Finding a recruitment company that puts you first can be difficult, but it’s worth the effort. 

We know that recruiting the right people for your organisation can be challenging, especially when you don’t have the right resources. That’s why partnering with external recruitment experts can be so beneficial. You get access to the right people, processes and technologies to ensure you find the perfect fit. 

But what can you expect from an external recruiter? What methods do they use? And are they worth the cost benefit for you? 

There are many methods of external recruitment. Not every recruiter or recruitment agency will take the same approach. Though most recruiters help save time and money by doing the initial screening of candidates and pre-qualifying them for interviews. They can also help to widen the talent pool, by providing access to a much larger source of applicants that may not be available through traditional job postings. 

Just as important as the recruitment methodology, is finding a recruiter that cares about and understands your goals. You need to find someone who will listen to your objectives and help you reach them. Taking the time to find a recruiter that is passionate about helping you achieve your goals can increase your chances of success. 

A recruiter that cares about you and the success of your team, will take the time to get to know you and your needs. They will utilise their specialist industry knowledge to provide bespoke advertising campaigns to attract the right people, and a bespoke shortlisting procedure to provide you with the best candidates for your unique needs.  

There is a big difference between recruiters that are working hard to fill seats and working hard to find the right candidates. With the right recruiter, it is possible to find the type of talent to upskill your team and your company. The right recruiter can find the right talent, fast. They will already have a large network of potential candidates that they can tap into. They will also be happy to head hunt for very specific skills and characteristics. 

At Project Recruit, we tailor our job advertising campaigns to suit you. This can include a range of job boards and social media approaches. We then help to shortlist what can often be a large number of applicants. We tap into our large network of pre-filtered candidates. And only provide the candidates that best suit you, your team, and your company. But, most importantly, we take the time to develop an understanding of your needs and help you to reach your growth goals. 

As a boutique recruitment agency, we offer full service recruitment and onboarding. Do you need for example a specialist recruiter in IT and cloud engineering? Or technology, business and data analytics? Someone that can work fast? Someone that will get to know each candidate well, before deciding who to recommend? If so, please get in touch and we’d be happy to help .

Our Services.

Feel listened to.
Know that your needs will be heard and met.

happy team

Global HR Solutions

Unmatched ‘white glove’ onboarding and tax compliant payroll service for your top talent.

new team

Project Team Recruitment

Need to recruit a whole team of high calibre staff? Need them to be onboarded fast?

Solar power technology team

Renewable Energy IT Talent

Get the best global Tech talent so you can scale your business in the Greentech market.

female programmer

Data Analytics Recruitment

Recruitment solutions for Data Analytics, Information Technology and Financial Services staff.

Technology staff looking at screen

Technology Recruitment

Recruitment solutions for Information Technology teams.

woman smiling

Multilingual Recruitment

Recruitment solutions for Multilingual resources.

Responsible Recruitment

Recruiters that listen to you and understand your needs.

Internal and External Recruitment 

Internal and External Recruitment

When should I get an external recruiter to help?

Rose McCarter-Field

By Rose McCarter-Field

If you’re a business owner, hiring manager, or other decision-maker looking to fill a position, you might be considering whether it’s time to bring in an external recruiter. You may be wondering if the cost of doing so is worth it. 

External recruiters can be helpful if you’re in need of specialised skills or if you don’t have the time or resources to handle the recruitment process yourself. They can also offer a valuable third-party perspective on job candidates, as well as a larger pool of potential candidates to choose from. Additionally, they often bring a wealth of industry knowledge and insights that can be invaluable to your hiring strategy.  

Ultimately, the decision to work with an external recruiter should depend on a number of factors. The size of the company, the number of positions you need to fill, and the complexity of the positions. It may be worth considering if you’re looking to fill a role quickly, or if you have a need for more specialised skills. 

One of the main advantages of external recruitment is that you instantly get access to professional recruitment services. Your dedicated recruiter will already have a network of relevant candidates that they can put forward. They likely will specialise in the area you are looking to recruit in. For example, if you want a cloud software engineer or business analyst, they will have a list of pre-filtered candidates to tap into. This is a massive time saver.

An external recruiter can also save time for you and your colleagues  by advertising for and filtering through candidates on your behalf. If you want a team already set up to provide job advertising campaigns, to seek out and filter the candidates so that you only receive CV’s for the best in the market, an external recruiter can be a huge benefit. 

If your recruiter is a specialist in the sector, you benefit from them having a comprehensive understanding of the lingo, terms, qualifications, and  relevant experience required for the role you want to fill. Be sure to seek help from a recruiter who has plenty of experience in the relevant sector, so they can be more effective at finding you the best and most appropriate candidates out there. 

It’s also worth considering using a recruiter for contract roles, managing payroll and easily scaling up and down resources. This is another advantage of working with an external recruiter, they can assist with managing the easy scaling up and down of staffing for projects. They can help to find the best contractors fast, set up their contract and manage their onboarding exceptionally quickly.  

One disadvantage of external recruitment is of course the cost. They are saving you time, bringing in their expertise and likely finding high quality candidates, faster. However there is of course a cost to this. A good external recruiter will already understand the industry specific nuances of the role you are looking to fill and they will take the time to understand your unique company needs. This is the type of external recruiter you want to find. It is important that they take the time to understand which candidates are best suited to you, the role, and your company. So be sure to get a recruiter that is a good listener. 

If you want to understand more about the advantages and disadvantages of external recruitment do get in touch. If you have a specific recruitment need, for individual or team placements, we may be able to help.

Get in touch 

Our Services.

Feel listened to.
Know that your needs will be heard and met.

happy team

Global HR Solutions

Unmatched ‘white glove’ onboarding and tax compliant payroll service for your top talent.

new team

Project Team Recruitment

Need to recruit a whole team of high calibre staff? Need them to be onboarded fast?

Solar power technology team

Renewable Energy IT Talent

Get the best global Tech talent so you can scale your business in the Greentech market.

female programmer

Data Analytics Recruitment

Recruitment solutions for Data Analytics, Information Technology and Financial Services staff.

Technology staff looking at screen

Technology Recruitment

Recruitment solutions for Information Technology teams.

woman smiling

Multilingual Recruitment

Recruitment solutions for Multilingual resources.

Responsible Recruitment

Recruiters that listen to you and understand your needs.

External Recruitment Advantages and Methods

External Recruitment Advantages and Methods

When and why to use an agency

Rose McCarter-Field

By Rose McCarter-Field

Need to find top talent for your contract, temp or perm role?

Finding the perfect candidate can take a lot of time, effort, and money. Especially in a sector where you may be overrun with choice and inundated with CV’s. Or on the other end of the spectrum, struggling to find any qualified match.

Posting an open role onto a job board is not enough. To attract the best candidates, you need to create a great candidate experience. You need:

Internal and External Recruitment

It can work very well to recruit new talent using your in-house resources. There are situations where the additional workload is not suitable for your business. You might find it difficult to attract and filter the right candidates, even with an experienced recruitment team.

The resources of your recruitment team may not be as extensive as those you can access with a recruitment agency. You may not have the time required to truly find the best person for the role. You may need to recruit someone fast, and benefit from someone who already has a database of relevant contacts.

When using a recruitment agency for contract or temporary assignments they will pay the candidates on your behalf (PAYE, Umbrella, or Limited Company). Which will help to speed up the onboarding process.

And for specialist roles, bringing in a recruiter with industry specific knowledge can help to find and filter the appropriately qualified and experienced candidates.

Ellise Project Recruit

Ellise Fleming

IT RECRUITMENT | ACCOUNT DIRECTOR

Get in touch for your IT recruitment needs.

Zivile Asanaviciute

Zivile Asanaviciute

Data Analytics Recruitment | Account Director

Get in touch for you data analytics recruitment and global payroll needs.

What is external recruitment?

A recruitment agency is there to help you, as an employer, find and hire top talent for your company. The right recruitment agency will take the time to get to know clients and candidates alike, to find the best match.

They are there to support you through the whole process. From targeted advertising campaigns, to shortlisting and ultimately working tenaciously to find you the best talent out there. A person or team that will bring in valuable skills to your company, someone who fits in with your company culture and ethos.

Happy Project Recruit Team

At Project Recruit we also offer Global HR Solutions, to make the step from finding your candidate, to getting them started run smoothly and quickly. So that their payroll, time, and expense management can be set up almost instantaneously. So that your new top talent can get started right away.

Global HR Solutions

Need efficient payroll, onboarding, time and expense management?

Your recruitment agency is there to work to your needs. Whatever they may be. If you have very specific unique requests, your allocated recruiter is there to find that unique person for you. If you need to work to a tight time frame, your recruiter is there to help you find the best candidate out there within that timeframe.

Be sure to find the right agency for you. Some recruiters get paid commission, so you want a recruiter that carers about finding the RIGHT person, not just filling seats. The best way to asses if your recruiter is going to put the effort into finding the right person, is how they communicate with you. Do they take the time to understand your needs?

It is important to have an agency that takes the time to understand your company, your team and your needs. These types of recruiters are more dedicated to finding the right candidates for your unique situation.

It is also important to find an agency that is suitable for your industry and the roles you need to fill. Sector specialist recruitment agencies already have industry insight. They are better suited to find the best candidates for your needs. They even have ready-made networks of potential candidates relevant to the sector.

Ellise Project Recruit

Ellise Fleming

IT RECRUITMENT | ACCOUNT DIRECTOR

Get in touch for your IT recruitment needs.

Zivile Asanaviciute

Zivile Asanaviciute

Data Analytics Recruitment | Account Director

Get in touch for you data analytics recruitment and global payroll needs.

Advantages of External Recruitment

FULL SUPPORT

As an employer, a recruitment agency will help to ease your recruitment problems. Whether you need to fill a position urgently, or you need to hire a whole team on mass, the agency will work to your requirements. Your allocated recruiter will only provide you with the best CV’s.

Candidates benefit from feedback from recruitment agencies on their application and how to improve themselves. Their allocated recruiter wants to see them succeed in getting the right job, and thriving in that role. They are there to help with any queries, whether it’s about the application or interview questions, their recruiter is there to guide them.

 

FASTER HIRING PROCESS

Need to get new hires in fast? A recruitment agency can often be a time saver for you. You can stipulate the requirements for your role, as well as the hiring time. Your allocated recruiter will then work to your needs. Whether this is days, weeks, or months. The right agency will find you the best candidates in any time frame given by you.

How do they find quality candidates so fast? A recruitment agency is already set up, you won’t need to attract and shortlist candidates. The whole process is handled by the recruitment agency and this saves you a lot of hassle. Once you have explained what you need, the recruiter will provide only the best candidates for your consideration. These agencies already have a vast database of talent. So you get access to their entire network of skilled potential contractors and staff.

The most meticulous external recruiters may already have specific individuals in mind from their network, that could turn out to be the top talent you need. Because these recruiters have taken the time to get to know the people in their network, their skills, experience, and character.

Our Services.

happy team

Global HR Solutions

Unmatched ‘white glove’ onboarding and tax compliant payroll service for your top talent.

Technology staff looking at screen

Technology Recruitment

Recruitment solutions for Information Technology teams.

Solar power technology team

Renewable Energy IT Talent

Get the best global Tech talent so you can scale your business in the Greentech market.

female programmer

Data Analytics Recruitment

Recruitment solutions for Data Analytics, Information Technology and Financial Services staff.

HIGHER QUALITY CANDIDATES

It’s not easy to find candidates, especially the top talent you require. The right external recruiter will bring professional experience. Through tenacious searching and filtering, they will improve the quality of your candidates. Your recruiter will bring a vast pool of talent with them. So you gain access to already vetted candidates.

Tech Staff Recruitment external Agency

Your external recruiter will already be an expert in candidate selection, in your sector. They are trained to assess candidates and experienced in finding the right fit for your company. Your external recruiter will seek out someone that will thrive in their new role.

SPECIALIST KNOWLEDGE

A specialist recruitment agency will understand the outlook of the current job market. They can provide advice on the best way to approach recruiting for your unique role(s) in the current market.

It sectors such as IT, data analytics and technology, getting a sector specialist recruiter that understands the terminology, qualifications, and the context of candidate experience, is essential for filtering the right candidates. If you need to recruit for roles such as business analysts and developers, for example, a recruiter that doesn’t have experience in a range of these tyres of roles, will likely struggle to filter out the best CV’s.

And they have their vast networks of specialists already in this field, which you gain access to.

FASTER ONBOARDING WITH GLOBAL HR SOLUTIONS

At Project Recruit, we also offer Global HR Solutions for faster and smoother onboarding. We are an external recruitment resource that can get your payroll, time, and expense management set up fast and reliably. Allowing for almost instantaneous placement following candidate selection.

Global HR Solutions

Need efficient payroll, onboarding, time and expense management?

External Recruitment Methods

The right external recruitment agency will have honed in their methods to find the best candidates. They will have years of experience in finding, vetting, and selecting people that are the right fit for your role and your company.

IT Team Recruitment External

These methods will start from advertising. At Project Recruit we offer advertising campaigns, that include social media, job boards, and our extensive network of talented professionals. We actively seek out the best candidates for the role, a person that will work well in your team, and sit well within your company culture. We also help to diversify team for those specifically seeking to create a more diverse team.

To ensure that a candidate will thrive in the role, it is important to get to know both you as a client, and the candidates. As recruiters, we take the time to find the best match for everyone. We filter only the best potential contractors and staff for your needs.

We provide full support through the interview, selection and onboarding process. This takes the time pressure off you. It enables fast and successful recruitment of the right people.

If you want to find out more about our recruitment methods, get in touch.

Ellise Project Recruit

Ellise Fleming

IT RECRUITMENT | ACCOUNT DIRECTOR

Get in touch for your IT recruitment needs.

Zivile Asanaviciute

Zivile Asanaviciute

Data Analytics Recruitment | Account Director

Get in touch for you data analytics recruitment and global payroll needs.

Our Services.

Feel listened to.
Know that your needs will be heard and met.

happy team

Global HR Solutions

Unmatched ‘white glove’ onboarding and tax compliant payroll service for your top talent.

new team

Project Team Recruitment

Need to recruit a whole team of high calibre staff? Need them to be onboarded fast?

Solar power technology team

Renewable Energy IT Talent

Get the best global Tech talent so you can scale your business in the Greentech market.

female programmer

Data Analytics Recruitment

Recruitment solutions for Data Analytics, Information Technology and Financial Services staff.

Technology staff looking at screen

Technology Recruitment

Recruitment solutions for Information Technology teams.

woman smiling

Multilingual Recruitment

Recruitment solutions for Multilingual resources.

Responsible Recruitment

Recruiters that listen to you and understand your needs.

Only The Best Match Will Do

contractor candidate global

Only The Best Match Will Do

Finding the perfect candidates and matching them with the perfect jobs, takes a boutique approach.

Rose McCarter-Field

By Rose McCarter-Field

Finding a person to fill a seat is easy. Finding the right person, takes commitment, consideration, and tenacity. And the payoffs are worth it.

The right person will be someone you can rely on to do a good job, someone who provides what you need. Someone who makes your life easier and noticeably improves the performance of your team and your company. The right person will stay longer, so you won’t be looking again in 3, or 6 months time.

Our team at Project Recruit have been carefully selected as recruiters who listen. They will stop at nothing to find the right people for our clients, and fast. We listen to your needs and we get to know and understand the candidates. We actively search the global talent pool to find the best options and source the best people for you.

Our company was founded on the idea that bespoke recruitment is the only way to get the best people for you. We have long standing relationships with our clients, because they know that we care about their needs, and all the nuances they need in their teams.

Get in touch to find out how we can help you to find the best people from the global talent pool. 

More Than Planting Trees

flower and tree

More Than Planting Trees

The Project Recruit Journey to Becoming Carbon Neutral

Rose McCarter-Field

By Rose McCarter-Field

Have you ever wondered how much of an environmental impact a recruitment company has? Or how it can be offset? At Project Recruit, we have taken on this challenge.

As a company whose operations are primarily digital, a substantial amount of our environmental impact is data usage. This combined with our office space, energy use, and occasional travel is how we have managed to quantify our carbon footprint.

Using providers that also offset their own carbon footprint and take measures to reduce their own environmental impact is one first big step. For example the servers that run our website and our internal data storage are managed by carbon neutral companies.

Where we haven’t yet managed to remove or reduce our environmental footprint, we have taken measures to offset our emissions. 

Planting trees can be seen as the go-to solution for offsetting carbon. However, the effect is delayed until the trees are fully grown and only lasts as long as the lifespan of the trees. There is also the consideration of the carbon released into the atmosphere at the end of the tree’s life or when they are felled. So, alongside planting trees for the future, we are investing in carbon reducing programmes that have both an immediate and long term impact.

These programmes for example include sustainable composting and the provision of clean fuels for cooking in African countries. We are also investing in reforestation in the UK, to mitigate against a depleting number of woodland areas.

We are still perfecting our journey. The road to becoming carbon neutral is complex. As our understanding of the environment increases, the measures to reduce our environmental impact will adapt. We are dedicated to the continual improvement necessary to help our planet to thrive.

Watch this space for updates.

Responsible Recruitment and International Compliance

legislation

Responsible Recruitment and International Compliance

How a recruitment company can assure your legal compliance

Rose McCarter-Field

By Rose McCarter-Field

International recruitment faces increasingly complex legislation as the world moves to a growing digital and global workplace. A company is accountable for international tax compliance and compliance to anti-money laundering legislation, in many of the companies in which it’s staff operate.

As an internal HR team, ensuring compliance with international tax and anti-money laundering legislation is a large and complex task. As a recruitment agency ensuring that staff resourcing and payroll comes with such compliance, requires a global network of resources. 

HR specialists in every relevant country are essential to keep up to date with changing legislation. Outside specialist help is critical for compliance. As such, at Project Recruit we have partnered with 32 accountancy firms in order to ensure the acquisition of such complex knowledge. These firms provide global coverage of legislation systems. This allows our clients to comply with the laws now, and the laws as they change.

Read more about international tax legislation and how it is affecting staffing: https://projectrecruit.com/workplace-internationalization-has-triggered-a-change-in-tax-liabilities/

Get in touch to discuss international compliance in your recruitment and payroll. 

Promoting Diversity in the Workplace

international team

Promoting Diversity in the Workplace

A Project Recruit Story

Rose McCarter-Field

By Rose McCarter-Field

Top talent comes in all shapes and sizes. At Project Recruit we are dedicated to finding the best candidates from the global talent pool. With this comes diversity. 

As a Recruitment Company with a focus on IT and data analytics, we work in an industry that is 83% male and in the UK, white dominated. This sector is suffering from a staff shortage and we believe creating more diverse teams is one way to solve this shortage. We can achieve this whilst at the same time create a more innovative and modern workplace through diversity.

McKinsey research found that the most gender diverse companies are 25% more likely to achieve above average profitability than the least diverse companies. For enthnic diversity this likelihood is increased to 36% (1). The benefits of a diverse team go beyond ethics and staff numbers, diversity has been proven time and time again to show a direct correlation with successful company innovation and higher revenue figures.

We are running a series of articles and webinars to provide guidance to companies who wish to build a more diverse team. To stay up to date with this guidance and read the latest articles, go to our Women in Technology page. And follow me, Rose McCarter-Field on LinkedIn, to read my thoughts on diversity in recruitment. 

    1. Financial Post, 2021 https://financialpost.com/fp-work/snowflake-ceo-says-diversity-goal-is-secondary-to-merit-in-hiring-choices

Lessons from IR35 in the Public Sector and What it Means for the Private Sector in 2021

IR35 man leader

Lessons from IR35 in the Public Sector and What it Means for the Private Sector in 2021

A flexible workforce is fundamental to successful business investment and economic growth. Is IR35 damaging the health of our economy and ability to recover from the current crisis?

Rose McCarter-Field

By Rose McCarter-Field

IR35 is designed to identify contractors who are avoiding paying the appropriate tax by working as ‘disguised’ employees, often through a Personal Service Company. However, the revised legislation inadvertently damages individual workers, business innovation and growth as well as our economy.

IR35 shows a one-size-fits-all approach from the Government which has been devastating to the public sector and in April next year is due to cause similar damage to the private sector. In an attempt to clamp down on tax avoidance, the legislation fails to consider the diversity of companies that drive our economy.

“Inside IR35” decisions make contractors more expensive, because employers’ National Insurance will be due. At the same time, the contractor’s take-home pay reduces, due to the deduction of PAYE tax and NICs. IR35 can reduce the worker’s net income by up to 25%, costing the typical limited company contractor thousands of pounds in additional income tax and NICs. 

Any business forcing genuinely independent contractors inside IR35 is unnecessarily increasing their costs, while restricting their access to skilled workers. Since the implementation of the revised IR35 regulations in the public sector, they have been struggling to attract and keep hold of talented contractors.

A study by the CIPD and IPSE (Association for the Independent Professionals and the Self-Employed), found that 51% of public sector hiring managers thought they had lost skilled contractors because of these changes that were implemented in 2017. A further 71% are facing challenges in retaining their contractors.(1)

graphic on IR35 impact

A study by the CIPD and IPSE (Association for the Independent Professionals and the Self-Employed). The impact of the revised IR35 legislation on public sector hiring managers.(1) 

Transport for London (TfL) projects rely heavily on contractors affected by IR35. TfL have experienced significant delays as a direct result of these regulatory changes. Chris Bryce, IPSE’s chief executive describes IR35 as “deeply flawed”. He reports that the legislation is damaging projects and people for whom the IR35 changes are not designed. These are not tax dodgers, they are people running innovative projects that drive our country and help our economy to grow.

Charles Cotton, senior performance and reward adviser at the CIPD, said the research suggested the IR35 amendments had resulted in “damaging unintended consequences” for the public sector. With the roll out of these changes into the private sector we can expect to see similar damaging effects.

“HR professionals have said they are finding it harder to recruit and retain skilled contractors, which is contributing to project cost rises, projects being delayed and, in some cases, projects even being cancelled,” Charles Cotton, senior performance and reward adviser at the CIPD.(1)

With a significant increase in unemployment levels and the introduction of furlough this year, our economy needs innovation to survive. The UK has furloughed more than any other country, our highest levels of furlough reaching nearly 30% of our workforce(2). Many of these jobs will become obsolete or significantly change in the coming months. 

People will be made redundant and they will have the option to return to the market selling their skills as freelancers or to retrain and develop their skills in new fields and start new businesses. IR35 restricts the attraction of this and furlough payments suppress the need for companies to make the difficult but inevitable decision now. In the US where the government has paid money directly to workers who have lost their jobs, they have created earnings breathing space for people to start up new businesses. As a result, there has been a record number of new companies popping up. Whether training yourself in a new skill or offering your skills out as a freelancer, tax law should be progressive and encourage this not punish it. It should not make companies afraid of engaging with small businesses.

Out of a recession comes innovation. Microsoft, Hewlett Packard, Amazon, Apple, Google, and Disney all started in a garage and are now worth more than the GDP of the entire UK economy. Government legislation should not be restricting our ability to invest and innovate, it should be encouraging us to do so. 

The global marketplace has dramatically changed in a very short space of time. We live in a new, digitised and socially distant marketplace. Companies and people need to adapt, fast. It is up to the Government to support any opportunity for innovation and investment. The faster we adapt, the faster our economy will recover. A flexible workforce is fundamental to this recovery.

 

    1. People Management https://www.peoplemanagement.co.uk/news/articles/ir35-damaging-unintended-consequences-
    2. public-sector-employers
      The Economist https://www.economist.com/leaders/2020/10/29/why-rishi-got-it-wrong