Mid year market review

By Fay Capstick

2022 is flying by and we think it’s time to review the UK marketplace for our industry, IT and digital recruitment and consulting, to see what the trends are.

Remote working

This is the big one and it shows no signs of changing anytime soon. Remote working is definitely here to stay. We are finding that both contract and permanent workers will not consider a position unless there is an element of remote working involved. For permanent workers this is an absolute must.

For many roles, workers are asking for fully remote working. 2 or 3 days a week in the office will be considered, but full time in the office is a no for nearly everyone. This change is here to stay and clients and employers are adapting accordingly.

A report in the Times states that even when office workers are asked to come into the office for a fraction of the week, it is a request that isn’t complied with (https://www.thetimes.co.uk/article/8656716e-1bed-11ed-b7c3-8b288ab55a56?shareToken=f778449243af78776768875a2bf0e73b). Further, on a Friday overall across all sectors, attendance was only 13%. The IT and tech sectors have the lowest overall attendance, averaging just 15% across all days, and underlining what our Parker Shaw recruiters are finding when we talk to candidates.

We have found that candidates for permanent positions, as well as being unwilling to work in an office, are prepared to accept a lower salary with a better benefits package if it means it comes with a remote working guarantee.

Candidates are firmly in control here and clients are adapting to the new way of working accordingly. The days of office working are over.

No more weekly relocating

Weekly relocating was a popular trend before Covid. For many contract positions, contractors would be willing to work away from home during the week and travel back home for the weekends. Now that remote working is normal, we are seeing far fewer candidates willing to relocate in this way when they could work remotely for an employer and be located anywhere.

IR35

We have found that the majority of candidates are still not wanting to work on contracts that are within IR35. Further, of those that would be willing to work within IR35, some are prevented from doing this due to Visa restrictions. This is something that needs sorting.

The developer skills gap

The skills gap for developers is still a big issue in the industry. We are finding it hard to find the quantity and quality of candidates needed to meet demand in this area. Research shows that the demand for developers is 56% higher than in 2019 (https://www.computerweekly.com/news/252521545/UK-tech-job-opportunities-at-10-year-high).

It would be useful if courses that taught these skills were highlighted to prospective students, so that they can be made aware of the opportunities in this skill area and help close the skills gap.

Conclusion

Even faced with a potentially stalling economy and a cost of living crisis, we are finding the IT industry has recovered well from the effects of Covid and is continuing to flourish.

Covid has bought in permanent changes to working practices such as remote working, which show that the candidates are the ones who have control in job negotiations. Developers have the most in demand skill and we cannot see this changing until enough job seekers plug the skills gap.

Final thoughts

At Parker Shaw we have been at the forefront of the sector we serve, IT & Digital Recruitment and Consulting, for over 30 years. We can advise you on all your hiring needs. If you are looking for your next job in the IT sector please check our Jobs Board for our current live vacancies at https://parkershaw.co.uk/jobs-board.