Information Technology Recruitment

On Friday the Government published the long-anticipated HMRC consultation on IR35 compliance in the private sector. As you may be aware, this follows the public sector reform in April 2017, and the announcement in the November 2017 Budget. You will also be aware if you have read my previous blogs on the subject, the Government’s seemingly blinkered drive to push this through (as they did within the public sector) whilst continuing to ignore the substantial concerns aired by all stakeholders, drives me mad. HMRC estimates that an additional £410M of income tax and NICs has been remitted since April 2017. This is before they take into account the drop in both corporation tax and dividend tax receipts from all the PSCs that are deemed inside the legislation. The net gain is something nearer £100m which, while clearly is quite a lot of money, I suggest it pales into insignificance when compared to the costs incurred by the Public Sector (in time, increased rates, cost of compliance teams etc) and others in the supply chain (recruiters requiring increased compliance teams, additional payroll systems, additional payroll staff, etc etc etc). From the consultation it is clear that the Government’s preferred option is to extend off-payroll into the private sector based on the assumption that non-compliance in the sector is widespread and due, to a greater extent, to active avoidance, which needs to be addressed. The consultation suggests that the public sector reforms have been largely successful, and supports the current system for determining employment status, defending the CEST tool (this tool is indefensible!) Those of you who worked to comply last April will recall that the rules weren’t finalised until 2 weeks before the changes came into force, meaning that it was impossible for the majority of the public sector employers and workers to get to grips with the changes in time and so countless incorrect status decisions followed. And no one really understood why their take-home pay changed. You can read a previous rant here. I don’t think anyone who hasn’t been directly involved with this will comprehend the time, disruption and cost that these changes have caused, and now it seems the fears of the entire flexible workforce may come true with the rules extended to the Private Sector. Where self-employed workers have been punished in the Public Sector by taxing them as employees, but with NO EMPLOYMENT BENEFITS, rather than stamping out false self-employment, this will be mirrored across the whole UK economy. The Government and HMRC seem intent on burying their heads in the sand to the fact that many workers have left multiple critical projects and that costs to the public sector have risen. And one thing never considered with these changes, is the costs to the economy in complying with the changes, which I assure you, probably make any tax gains in the Government’s coffers look small. This ‘solution’ does nothing to tackle false self-employment and merely punishes those that make this country’s flexible workforce, world-class. If the Government really wants to tackle false self-employment, it could start by creating a statutory definition of self-employment once and for all. Or, as seems to be its intent, it could create mayhem across the economy just before the UK needs all the competitive advantage it can gain as we step away from the European Union.

As many of you will be aware, there are major changes underway around the laws governing data protection in the form of GDPR, or the General Data Protection Regulations. The regulations are being updated in the light of the changing world in which we live and the huge amount of data that is held or shared, much of it online. As recruiters, we take data protection very seriously and have spent months understanding and preparing for the new changes. One of these changes is ensuring we have a lawful basis for processing data and, given that GDPR is not recruitment specific, a lot of this is down to how the legislation is interpreted. Now finally, the ICO (the governing body – the Information Commissioners Office) has released a 46-page piece of guidance around one of the lawful basis that can be used, and hidden away in this guidance are a few paragraphs specific to recruitment. Many candidates post their CVs on CV databases online, such as Monster, Jobsite, CV Library etc, that many recruiters subscribe to. Most recruiters will download suitable candidates onto their own database to enable notes to be taken against the candidate regarding conversations etc. What we and most recruiters who follow The Conduct of Employment Agencies and Employment Businesses Regulations 2003 do, ensuring we work in an ethical and transparent manner, is gain explicit permission from a candidate before their CV is submitted to any client. This means that our candidates always know where their CV has been sent, and always with their consent. What the ICO's advice is around CVs downloaded from CV databases is that it is in the agencies’ legitimate business interest to send the CV to clients, because the fact that it was posted on a CV database, it is ok to send it out to clients without explicit permission from the candidate. The specific wording in the guidance is “they [the candidate] would clearly expect that recruitment agencies would access the CV and share with it their clients” It remains my view that downloading the CV would be expected and is in the recruiter's legitimate interest, and this does not override the rights of the individual so is in keeping with one of the foundations of the legislation, however it remains my, and my company’s, view that a CV should not be sent to any client without the explicit consent that we have always sought, and will continue to seek. Although I don’t expect the ICO to understand the nuances of every industry sector, this simple example just highlights the complex platform that GDPR is creating, the huge room for interpretation (misinterpretation could be very expensive for a business), and the problems that many businesses (it affects ALL businesses in the UK) face in trying to comply.

If you’ve ended up reading this article, then more than likely the last few weeks of your new year have been quite the rocky road. After the New Year arrived and it was time to take a rain check on things, you realised that for whatever reason you weren’t happy in your role, and you made the decision to start looking for a new opportunity to kick start 2018. Following a period of intense job searching, between your new fitness routine, which involved meeting your recruiter and developing this relationship, you were asked to interview for a promising new opportunity. After a series of meetings with the hiring manager, much to your delight, you were offered the job. Then, after all of that, your current employer threw you a curve ball and made you a counter offer (shock), one which you found hard to turn down. Whilst you were feeling flattered at the time, all the buzz quickly wore off, only to be replaced with a sinking feeling in the pit of your stomach, the feeling you have made a huge mistake. Don’t panic. Whether you made the wrong decision or not, you will bounce back from this and get your career and 2018 back on track. But, before you make any sudden moves back into your search, check for the below signs that this counter offer was definitely a mistake: 1. Nothing has changed Look at your reasons for leaving in the first place… Do you feel these issues have been rectified or is everything exactly the same as it was before? For example, maybe you felt like you didn’t have a great work-life balance, or the commitment you were putting into your job was going unnoticed. More often than not that counter offer you received included some great new perks; a higher salary, stock options etc. But at the end of the day that offer didn’t acknowledge the deeper reasons behind your motivation for looking for another role elsewhere, such as a lack of workplace fulfilment, getting back the passion for what you do, the opportunity for development, and a sense of purpose. These are the things that material benefits simply can’t make up for. 2. Things are actually worse than before If you are being truthful with yourself, is work actually worse than it was before? Left wondering why on earth your employer didn’t try harder to keep you until you handed in your notice? Surely they could see you were unhappy, and if they couldn’t, well then that says it all. Perhaps your counter offer came with new demands as a result of your new salary package, despite the fact that, in your eyes, the counter offer is simply a fair reflection of the job you have been doing for months or even years. Perhaps your colleagues have distanced themselves from you, losing trust because you were initially going to abandon ship. Whatever the case may be, you dread going to work more than before. 3. Your inner voice is screaming out to you It is, of course, possible that perhaps you have all of the rewards and responsibilities that you were hoping for. Perhaps your colleagues are thrilled that you are staying; they are making you feel more welcome than ever before. But something in your gut just doesn’t feel right. Although you can’t put your finger exactly on what is wrong, parts of your job are bringing you down, perhaps subtle office politics at play or the lack of innovative and inspirational leaders to pick up the office motivation. Whatever it is, your inner voice is telling you to leave. If this is the case, I would advise you listen to it. What to do next Rest assured, you’re not the first person to fall head over heels for a juicy counteroffer, and you certainly won’t be the last. But now you owe it to yourself to be completely honest with yourself about what you do want from your career. Write down beyond the material perks. Perhaps it’s a better workplace culture, a more motivating boss or better progression opportunities. Think about what your current employer is lacking, and how your next employer will need to be different. Assess whether the first offer which you turned down could really tick these boxes. If it did, then swallow your pride and arrange a meeting with your recruiter to explain the situation. You never know, the previous offer may still be on the table. If not, see if your recruiter can put you forward for any similar roles that they have available. Let your recruiter know you are on the hunt again, but that this time you have a better understanding of what you do and don’t want from your next role, and a greater confidence in your worth. They are there to help you and will have seen this situation before. Relay your new found criteria to them, and use this yourself as you Don’t be too hard on yourself about your decision to take that counter offer. After all, you gave your current employer a second chance to meet your career needs, and for whatever reason, these needs haven’t been met. At least now you have solidified in your mind what it is you truly want from your next move. Look at it from this perspective, accepting that counter offer was less of a mistake and more of a learning curve, one which will help guarantee that your next step is a successful one. 2018 can still be the year you start a new chapter in your career.