Hear from our Director Mike Bowler (FIRP).
Every few years when some new legislation is introduced, recruiters follow the same process – first roll their eyes about the additional admin inflicted, and then they look for an angle.
Usually, when change is brought about by legislation, a recruiter makes a decision about where to position themselves. This decision often has a direct impact on business. Depending on your stance you can win or lose.
So, what positions are being taken up with Private Sector IR35?
What do we already know? And what can we assume?
…and where is the opportunity?
I suggest identifying contractors working through umbrellas; contractors accepting that they will need to use umbrellas going forward and some perm candidates who in a changing landscape may be attracted to flexible working especially if rates increase. These people are now gold dust. Identify them, update their details and stay in regular contact.
There will be vacancies as contractors decide to quit, go perm, go overseas or demand unsustainable rates. Clients may determine some essential, specialist contractors as genuine self-employed consultancies, but seem unlikely to accommodate the masses. In due course, clients will become fatigued with requests to assess assignments as outside IR35 and will welcome suppliers that are ready, willing and able to supply contract staff already set up to work on ‘inside IR35’ assignments.
Recruiters do have a duty to help justify the perceived status of their contractors to clients, or even get involved in an appeal process that they are entitled to. But is this going to result in any long term reward?
The only certainties are IR35 is coming and contractors working through compliant umbrella companies are unaffected. Maybe you should set out your stall accordingly.
Mike has worked within the recruitment industry since 1995 — as a top-billing consultant before moving on to a managerial and directorial role. As part of the executive management team, Mike helped grow a small business into an AIM listed company — establishing a business unit from scratch and developing it into a £multi-million perm and contract division, where he oversaw 50 members of staff. Mike is a Fellow of the Institute of Recruitment Professionals (FIRP) and has mentored a number of IRP award-winning consultants throughout his career.
Connect with Mike on Linked In.