The Government has outlined an ambitious plan for change in its 2024 manifesto. This agenda aims to foster economic growth, job creation, infrastructure development, and social reforms. Here, we explore the key elements of their plan and potential impact on the recruitment sector.
Economic Stability and Growth
- Economic Stability: The commitment to restoring economic stability through new spending rules and a corporation tax cap at 25% is expected to create a more predictable business environment. This stability is crucial for businesses planning long-term investments and for recruitment agencies anticipating hiring trends.
- Investment: The introduction of a National Wealth Fund aims to invest in future industries, creating approximately 650,000 jobs. This initiative is set to boost demand for recruitment and agencies will play a crucial role in filling these positions swiftly and efficiently.
- Industrial Strategy: The modern industrial strategy focuses on new technologies and infrastructure, including AI and data centres. This strategy is likely to spur a surge in recruitment as companies seek specialised talent to drive these innovations; particularly in sectors such as technology, clean energy and healthcare.
Job Market Reforms
- New Deal for Working People: Enhancing job centre reforms and offering new childcare support aims to make work more rewarding and accessible. This move will likely increase the pool of available talent, driving more diversity in the workplace.
- Skills Development: Reforms to the immigration and skills system will emphasise developing home-grown skills tailored to industry needs. This approach may open up opportunities for individuals from various backgrounds to acquire in-demand skills.
Organisations will need to pivot towards upskilling and reskilling local talent, potentially leading to a more skilled and versatile workforce. Recruitment agencies will need to adapt their strategies to attract and place these diverse candidates, creating more inclusive hiring practices.
Regulatory Changes
The Government’s commitment to reforming employment practices will introduce several changes, and the introduction of Single Worker Status and Day One Rights will significantly reshape the employment landscape in the UK. Here’s why:
- Single Worker Status: Replacing the existing employment categories with just “worker” and “self-employed” will extend rights to more individuals, necessitating updates in how organisations classify and manage contract workers. The narrower definition of “self-employed” may result in fewer individuals qualifying for this status, and the role of umbrella companies in paying contractors via PAYE may change significantly.
- Day One Rights: Introducing rights from day one of employment, including unfair dismissal protection and flexible working, will require organisations to revise onboarding processes and contracts. The introduction of these rights may make very short-term assignments less attractive or feasible for some clients; leading to a preference to hire permanent employees.
Aligning with Your Business Needs
This plan for change aligns with the need for companies to address challenges such as fostering diversity, harnessing the power of data, and becoming an employer of choice. This focus should also drive organisations to implement more inclusive policies and practices
At Marshall Wolfe, our expertise in contract and permanent hiring within the digital and technology sectors ensures that we can provide the talent you need to drive your business forward. Alongside this, our value-add services and tools support the engagement, onboarding and compliance of the contract talent pool. We are committed to helping our clients navigate these changes and seize new opportunities.
