How will legislative changes in recruitment law affect you?

  • Hannah
  • 01/09/2017
  • 07:00
  • Recruitment
  • Insights
  • Candidate
  • Client

The second quarter of 2017 saw two changes that will impact our candidates and clients.

Changes to the IR35 assessment in the public sector in April mean that many contractors are effectively taking an overnight pay cut. Ian Storey, SVP for Spring Technology, thinks the changes will be profound: “The changes to the assessment of IR35 have introduced a new challenge to the public sector. Many more positions are now falling inside the scope of IR35, and some organisations are making blanket decisions so that all contract requirements fall inside IR35. These roles are no longer as attractive as contracts within the private sector. Projects may be delayed as they struggle to attract candidates in markets where there is strong competition. How the private sector will respond to an increase in candidate availability is yet to be seen, but we anticipate that there will be opportunities for businesses to make cost savings or utilise this influx of talent to boost productivity.”

The second legislative change is the introduction of the apprenticeship levy. As a cost, this only affects companies who have a wage bill greater than £3 million, of which they will have to pay 0.5%. However, all companies will be able to apply for funding in order to pay for training for apprentices in their company.

The figures available so far for this year suggest a small increase in apprentices may happen, but it is more likely to be seen in the longer term.

This pot of money could be invaluable to our clients – it could help improve retention and fill skills gaps. We’re advising clients should look at this as an opportunity to invest in current employees and introduce them into areas where the company has needs. A technical support worker could be given training to become an information security qualification. There are already three technology based apprenticeships in the top ten most popular courses available. Digital and Technology Solutions professional is in the top five, whilst Network Engineer and Software Developer are a little further down the list.

If employees are receiving training and improving themselves, we find they are more likely to stay in their current company.

The Adecco Group UK&I conducted research with the CIPD that shows employers in the UK already see the value in apprentices. They believe that skills such as time management and commercial awareness are better acquired as an apprentice. The results of our survey also suggest that apprentices integrate far better into company culture than do graduates (47%, with a balance of +40).

For more insight into the IT recruitment landscape in your region, register for the Spring Market Monitor to receive our quarterly report.