Spectrum IT's Mid Year Review 2024
As we pass the halfway point of 2024, we’ve taken some time to review and analyse what we have seen in the last six months. We’re always interested in patterns and trends happening in IT recruitment generally, as well as what we’re experiencing here at Spectrum IT.
Market overview
Understanding how the market is performing can be critical to planning future hires or job changes. One positive trend that we’re hoping will continue is that we’ve seen fewer redundancies across the entire technology market compared to 2023. As well as good levels of retention, the number of placements made are also on the up. May 2024 was Spectrum IT’s busiest month since November 2022 for placements made. Many of our existing and new clients have been expanding their teams, with a small percentage of roles filled being due to staff members moving on.
We have seen an increase in demand for technical talent in 2024 compared to 2023, which has resulted in permanent salaries increasing slightly. Contractor day rates are also similar to last year, with most candidates ideally looking for outside IR35 assignments. For those contracts that are inside IR35, candidates are seeking higher day rates to compensate for the tax differentials.
For highly skilled candidates in in-demand areas, it’s good news. Over the first six months of the year, we’ve seen an increased number of candidates receiving multiple offers from different employers – in fact, multiple offers are at their highest level since Q4 2022.
Office-based working vs Remote working
One thing that is changing significantly for candidates is how much office time is expected or required. Starting from the initial interview process, we’re seeing an average of two stages, with at least one interview typically being held face-to-face at the client’s office. Employers are increasing their demand to have candidates attend the office more frequently and engage in-person with peers and colleagues. Typically, once a week is the expected minimum. At the same time, candidates are also more actively seeking positions with the option of office-based working at least some of the time; although in a recent survey 88% of candidates said they will only apply for or consider jobs with some degree of flexibility and/or remote working.
We are seeing the availability of fully remote vacancies beginning to dwindle. Clients who offer little or no flexibility are significantly restricting their talent pool, with only 12% of those surveyed saying they would consider these opportunities. The takeaway here is that flexibility is highly desired, alongside some in-office work on a semi-frequent basis.
Another consideration for those looking to hire in 2024 is that we’ve seen more candidates asking about companies’ DE&I policies during the interview process. In a recent LinkedIn survey, 48% of respondents stated that diversity and inclusion were very important to them. It’s worth highlighting these policies early in the recruitment process.
Demand and skills
Demand is rising in many different areas across the IT and technology sectors. During Q2 2024, we began to see an increase in demand for permanent vacancies compared to Q1 2024. It will be interesting to see whether this pattern continues for the rest of the year. The demand for contractors is holding steady, in line with 2023.
Candidates perceive there to be fewer vacancies advertised than previously. We recently surveyed 400 software and technology candidates regarding the number of job opportunities comparing 2023 to 2024 so far. 73% responded that they felt there were fewer opportunities than in 2023, with just over a quarter saying thought it was the same or more. This may be explained by multiple agencies advertising the same vacancies, giving the illusion of more available roles.
Many of our clients now partner with Spectrum IT as an exclusive recruitment partner. This enables us to work as an extension of the company’s own talent team or in partnership directly with technical managers, meaning we can fully explore the candidate market (passive & active), ensuring we provide a quality qualified candidate shortlist. Often the best candidates are not actively looking for a new challenge.
When it comes to in-demand skills, AI is right up there. We’ve seen an increase in the need for AI and data skills as companies introduce AI into their businesses. This has included a focus on permanent AI Software Engineers, with some companies opting for a blended approach, utilising both permanent and contract hires. We’ve also seen an increase in data analytics and Power BI positions among multiple clients, while there remains a consistent demand for Software Engineers, DevOps Engineers, Product Managers and Test Engineers.
International IT Recruitment
Our journey into international IT recruitment continues. It began when our existing clients sought our help in recruiting talent across borders. In the last six months we have sourced candidates in the Netherlands, Portugal, Canada, the US, and Germany. These early successes demonstrate our ability to secure top-tier IT professionals globally, catering to the diverse needs of our clients.
Recently, we've observed a shift in the industry, with software teams increasingly being built in the UK rather than the US. This trend is driven by the high salary costs in the US and the abundant availability of skilled professionals in the UK. Companies are recognising the UK as a hub of IT talent, offering cost-effective solutions without compromising on quality.
Community and interactions
We’ve been involved in the local tech community, hosting and creating user groups since 2010. We’ve experienced a real interest in user groups and supportive communities, enabling those working in the IT and technology sectors to network, share ideas and collaborate. We’re proud of our involvement in tech community user groups, most recently with Women in Tech Hampshire (WiTH), which is going from strength to strength. This group was launched in January 2024, and meets every 2 months. In May 2024, we had over 70 face-to-face attendees for an engaging and insightful evening. See our blogs for learnings from all the meetings to date.
Hampshire AI Technology User Group
With the continual development and implementation of AI technology, we’re now looking to launch a new tech community group called Hampshire AI. We’re hoping to host this at the University of Southampton Science Park, with the inaugural event being held in September 2024. We’re keen to engage with members of the tech community who would like to speak at or help run this event; if you’re like to find out more, please email HampshireAI@SpectrumIT.co.uk.
We hope you find these insight reports useful. If you would like to find out more about how to use these insights to plan your hiring strategy, or to discuss how it could impact you as a candidate, contact our team of IT recruitment experts now.