Today we are publishing a guide to IT Recruitment in the UK from our friends at Lucky Hunter.

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Lucky Hunter as an international IT recruitment agency, always follow the latest trends in the IT market, and in this guide they are offering a key few insights on IT staffing in the UK.

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The United Kingdom is home to a wide variety of businesses, from established international giants to innovative local startups. Recent reports from Beauhurst indicate a notable improvement in regional equity investment distribution. While London's share remains significant at 50% in Q1 2023, it's down from a peak of 53% observed in Q1 2022. This shift highlights the growing importance of startup hubs across the UK. This environment of constant development creates a need for skilled IT professionals; as an international IT recruitment agency with an office in London, we at Lucky Hunter understand the intricacies of the local IT staffing market. This article shares helpful insights to help you navigate the UK market.

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The IT Talent Landscape in the UK

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According to the SIA Global IT Staffing Market Sizes and Competitive Landscape 2023 report, the UK ranks as the third-largest market globally for IT staffing. In 2022, the UK's IT staffing revenue was estimated at $6.9 billion, underscoring its significant presence and influence in the global IT staffing arena. 

Beyond the strong pull of the UK's tech industry, what unique qualities define local IT professionals? 

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What makes IT specialists from the UK stand out

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1. Excellent Educational Background

British IT specialists often have the advantage of a world-class education, graduating from institutions consistently ranked among the best globally. Universities like Oxford, Cambridge, Imperial College London, and University College London annually graduate students with in-demand skills. 

2. Variety of Specialisations

Another factor that allows IT specialists from the UK to remain competitive is the variety of specialists. You can easily find specialists across every imaginable IT sector from software development to cybersecurity and AI.

3. Innovation Culture

The UK's business environment maximises every resource to distinguish itself from competitors. Companies consistently pursue innovation, motivating IT specialists to push boundaries by exploring emerging technologies and acquiring new skills.

4. Global Experience Within the Country

IT specialists from the UK have many opportunities to engage in global projects, thanks to the significant presence of international businesses in the country. It allows them to collaborate with diverse teams and participate in cross-border initiatives. As a result, they gain valuable experience and are well-prepared to excel in international business settings and projects.

5. Diversity

The UK is known to offer a multicultural workforce, and the IT market isn't an exception. The diversity of backgrounds can bring wider perspectives to teams, leading to more effective problem-solving approaches. 

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Which Companies Would Benefit from Hiring from the UK?

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Considering the particularities of the UK job market, several kinds of companies may find particular advantages in recruiting IT talent there.

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1. Corporations that require high-level expertise in IT and are willing to invest in top talent.‍

2. Tech startups looking for like-minded people. 

3. Companies offering remote work can access the UK IT talent pool without geographical constraints. 

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Key Points About Labour Laws in the UK

When speaking about hiring in the UK, it is essential to understand the intricacies of local labour laws. 

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1. Minimum Wage: The UK has a national minimum wage, but the exact amount varies depending on age and experience. The National Living Wage for individuals aged 21 or over is at £11.44 per hour. Those aged 18 to 20 earn £8.60 per hour, while individuals under 18 receive £6.40 per hour. Apprentices are compensated at a rate of £6.40 per hour. 

2. Paid Time Off: Employees in the UK are entitled to a minimum amount of paid vacation time (typically 28 days per year) and statutory sick leave entitlement.

3. Anti-Discrimination: UK labour laws strictly prohibit discrimination based on race, gender, age, disability, or sexual orientation. Companies must ensure fair and equal treatment throughout the recruitment and employment process.

4. Workplace Pension Scheme: Employers must contribute at least 3% of the employee’s earnings between £6,240 and £50,270 to a workplace pension, covering salary, bonuses, and statutory payments.‍

5. Statutory Maternity And Paternity Leave and Pay: Eligible employees can take up to 52 weeks of maternity leave (26 weeks Ordinary, 26 weeks Additional). Statutory Maternity Pay covers up to 39 weeks: 90% of average weekly earnings for the first 6 weeks, then £184.03 or 90% of earnings (whichever is lower) for the next 33 weeks.

As for paternal leave, for births before 6 April 2024, eligible employees can take 1 or 2 consecutive weeks of paternity leave. For births after this date, leave can be taken consecutively or separately. Statutory Paternity Pay is £184.03 or 90% of average weekly earnings, whichever is lower.

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Running Background Checks on UK Employees

In the UK, background checks are mandatory under the Employment Background Check Act of 2008. These checks verify qualifications and protect against risks. Essential screenings include:

• Criminal record checks
• Health checks
• Right to work in the UK
• Employment History 
• Qualification Check 

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Other Points to Consider When Hiring in the UK

• Benefits: Competitive benefits packages are increasingly significant for attracting and retaining top talent in the UK. Consider offering private health insurance, pension plans, or other attractive perks.
• Data Protection: The UK General Data Protection Regulation (GDPR) governs the collection and use of personal data. Ensure you comply with these regulations when collecting and processing employee data. While the UK GDPR law doesn’t set a fixed period, it is better to store personal data no longer than is necessary. If a candidate previously provided their email to receive more information about a vacancy but communication halted for some reason, and a year later you have another job opportunity, you should ask for their email again before sending any correspondence.
• Brexit Uncertainties: If you're a Europe-based company, it's essential to carefully study the work regulations that have emerged post-Brexit. These regulations may include: 
• Visa & Work Permits: UK nationals now need visas or work permits to work in EU countries. Requirements differ for short-term business visits and long-term employment, varying by country.
• Recognition of Professional Qualifications: The UK and EU no longer mutually recognise professional qualifications. UK specialists must get their qualifications recognised by each EU country’s authorities. This may be a lengthy process, often involving assessments or additional training.
• Social Security: The UK and EU have a new social security coordination agreement under the Trade and Cooperation Agreement (TCA). This allows for the aggregation of insurance periods in both the UK and EU for determining eligibility for benefits. UK-based employees posted to work in the EU must obtain an A1 certificate to prove they remain subject to the UK’s social security system, avoiding double contributions.
• Taxation: Hiring UK-based workers may create a "permanent establishment" in the UK, leading to tax obligations there. Companies must manage potential double taxation issues. This often involves applying for tax credits or exemptions.

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A Couple of Words about Contractors Hiring

Hiring independent contractors can be a cost-effective and flexible alternative to full-time employees, especially for companies not ready to commit to long-term employment. However, this approach has both advantages and challenges, particularly in the UK.

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Pros of Hiring Independent Contractors

• Cost Efficiency: Contractors typically don’t require benefits such as health insurance, pensions, or paid leave, reducing overall costs.
• Flexibility: Contractors can be hired for specific projects or tasks, allowing companies to scale their workforce based on demand.
• Access to Talent: The UK is a hub for skilled professionals, especially in tech, finance, and banking. Hiring from this pool can provide quick access to top talent.

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Main Challenges

• Compliance with IR35: UK legislation such as IR35 targets "disguised employment," where contractors are effectively treated as employees to avoid tax obligations. Non-compliance can lead to significant fines and back taxes for employers.
• Intellectual Property Concerns: In the UK, contractors generally retain the IP rights to their creations unless otherwise stipulated in the contract. This can be crucial in IT and other sectors where IP ownership is vital.

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Hiring and Compliance

To successfully hire contractors, it’s essential to consider these points: 

• Worker Classification: Understanding the distinction between employees, workers, and contractors is essential. Each status has different rights and tax implications.
• IR35 Legislation: Companies must ensure contractors are genuinely self-employed or face potential penalties. This includes proper documentation and adherence to HMRC guidelines.
• IP Ownership: Clearly define IP rights in contracts to prevent disputes and ensure that the company retains ownership of commissioned work.

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Where to Find IT Specialists in the UK 

As we already established, the UK IT job market offers a large and diverse talent pool. However, identifying a perfect candidate might not be that easy. Here are some tips on how to facilitate your search.

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Use Online Job Boards

As trivial as it sounds, don't forget to use established platforms like LinkedIn and Indeed. These websites allow you to post job descriptions, filter candidates based on specific skills, and connect with a broad range of IT professionals actively seeking new opportunities.

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Here's the list of other UK job portals: 

• Glassdoor
• Totaljobs
• Reed.co.uk
• Monster
• DevITjobs 
• Jora 
• Remote Worker 
• IT Job Board
• Technojobs
• Bubble Jobs

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Networking Events and Meet-ups

Attend industry gatherings and meet-ups. These events provide valuable opportunities to connect with IT professionals in a more informal setting, assess their skill sets, and build relationships that could lead to potential hires. 

Last year, Lucky Hunter hosted a vibrant meetup for the IT community ‘Let’s get tech-gether’. We organised this event to bring together top IT professionals, IT recruiters, and digital enthusiasts in London. Our goal was to create a blend of a professional atmosphere and casual networking, allowing our guests to expand their professional connections and simply enjoy some refreshing drinks with like-minded individuals.

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Hackathons and Coding Competitions

Engaging with hackathons, coding competitions, and tech challenges can allow you to find great IT specialists and assess their technical skills, problem-solving abilities and teamwork on the spot.

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Tech Recruitment Agencies

Searching for the right specialist might be complicated and overwhelming – consider partnering with IT recruitment agencies like Lucky Hunter. We understand the specifics of the local market and can find a perfect match for your company. 

How do IT recruitment agencies work? Learn more in our article. 

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Hiring Hacks

• Don't Be Direct: Brits often favour a more indirect communication style – they may avoid direct confrontation and use understatement or humour to convey messages. Additionally, small talk is crucial in their communication, building rapport and easing into conversations.
• Keep Your Distance: Excessive emotional display and active gesturing may be seen as unnecessary, so it's advisable to maintain a restrained communication style. This includes avoiding overly personal questions and maintaining a balance between formality and friendliness. When interviewing or negotiating, be tactful and focus on clear, concise exchanges.
• Work-Life Balance: Mention flexible work arrangements, generous paid time off, or other policies that support a healthy work-life balance. Showcase benefits that promote well-being, such as wellness programmes, parental leave policies, or private healthcare benefits. Be mindful of scheduling workloads and respecting vacation time.
• Formal vs Informal Language: It is essential to strike the right balance between formal and informal language. English, while widely spoken globally, varies in its use of formality depending on the context. In professional settings, starting with formal language is advisable, then adjusting the level of formality to suit the environment and the relationship with the person you’re communicating with. 
• Offer Flexibility: In the UK, transparency in job offers is standard practice. It's crucial to clearly describe all conditions and benefits. If your company offers remote work options or hybrid models, clearly state this in job descriptions. It can be a major perk for many candidates.

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We hope this article helps you in your hiring endeavours. Remember, you can always make things easier by contacting Lucky Hunter. We will help you find the best IT professionals anywhere in the world. Fill out the form, and we will get back to you as soon as possible.