Hiring Contractors Post-IR35
Hiring Contractors Post-IR35: How to Attract Top IT Talent
The IR35 reform has significantly altered the landscape for engaging IT contractors in the UK. Since the changes were introduced, many skilled professionals have become more selective about the contracts they accept. For businesses looking to secure top-tier talent on a contract basis, it is now more important than ever to understand what motivates contractors and how to adapt your hiring practices accordingly.
Be Transparent About IR35 Status
One of the biggest concerns contractors face is the uncertainty around IR35 classification. Many are reluctant to engage in contracts that fall inside IR35 due to the associated tax implications and reduced take-home pay. By providing clarity upfront about the IR35 status of a role, you can build trust and attract contractors who are confident in the compliance of your engagement. It also shows that you are proactive and serious about fair contracting practices.
Offer Competitive Day Rates
Contractors have always prioritised competitive pay, but the shift in IR35 has made this even more essential. With reduced tax efficiency in certain engagements, many contractors now expect higher rates to offset their losses. Offering a rate that reflects the market – and the level of expertise you require – is crucial if you want to attract and retain high-calibre professionals.
Highlight the Quality of the Project
A contractor's decision is rarely based on rate alone. The nature of the work, the technologies involved, and the impact of the project all play a part. Projects that are innovative, strategically important, or allow contractors to expand their skill set tend to be the most attractive. Make sure your job specifications highlight these elements clearly, along with any opportunities for ongoing work or repeat engagements.
Promote Flexibility and Support
In a post-pandemic world, flexibility has become a standard expectation rather than a perk. Many contractors now favour remote or hybrid contracts and will prioritise clients who can accommodate these preferences. Equally important is the level of onboarding support you provide. Contractors need to hit the ground running, so make sure you have a structured and efficient onboarding process that sets them up for success from day one.
Communicate Contract Details Clearly
Ambiguity is a red flag for experienced contractors. Ensure that all key details – such as contract length, project timelines, payment terms, and expectations – are communicated upfront. The smoother and more professional your recruitment and onboarding process is, the more likely contractors are to speak positively about working with you and recommend your organisation to others.
Work with a Specialist Recruitment Partner
Partnering with a recruitment agency that understands the intricacies of IR35 and the contractor market can make a significant difference. Not only can they help you navigate compliance and reduce risk, but they can also position your opportunities in the best light and match you with candidates who are a strong fit, both technically and culturally.
