LOB Salary Guide RISK v5 SPREADS - Flipbook - Side 7
07
Contract recruitment trends
The unprecedented demand for
permanent staff was not widely
reflected in the interim market in
2022, with IR35 reforms making
contract and temp roles less
attractive.
Interim positions at the junior end
of the market bucked this trend,
and day rates rose significantly
for contractors who have two to
five years’ experience. This was
nevertheless one of the few bright
spots in a sluggish year for interim
risk recruitment.
IR35 changes were introduced
in April 2021, but the immediate
impact was relatively benign. In
our report last year, only 16% of
organisations believed the new
regulations had caused them
to miss out on hiring a desired
contractor.
However, nearly two-thirds of
employers (63%) in our latest
survey said the issues surrounding
IR35 were now affecting their
ability to engage interim workers.
Part of the problem is that skilled
contractors are increasingly
seeking permanent roles.
“A number of organisations took
quite a risk-averse approach to
IR35 reforms, with many choosing
not to hire any contractors on
‘outside IR35’ arrangements,” says
Chloe Bailey, Principal Consultant
of Interim Risk at Barclay Simpson.
“The attraction of carving out
a career as a contractor has
therefore dissipated somewhat,
with people flowing back into the
permanent market as a result.”
This situation could reverse in 2023
if economic headwinds continue
to pick up. It’s common for firms to
rely more on temporary resources
in periods of uncertainty, and
contractors could be enticed back
into the market if organisations
choose to relax their policies
regarding outside IR35 roles.
Despite a slowdown within the
market, interim staff remain a
valuable resource for the majority
of organisations, with 63% of
risk management departments
utilising contract or temporary
workers.
Specific project work (53% of
organisations) and absence
cover (16%) are the most common
reason for hiring within the space.
Notably, 16% of our respondents
said they currently use contractors
because they are simply unable
to source permanent candidates
– this is up from 9% who said the
same in 2021.
