The UK’s October 2024 budget brings notable implications for recruitment agencies, with shifts that may impact opportunities and operational challenges. Key aspects include the government’s focus on public infrastructure investment, skills development, and tax and compliance measures adjustments.
Read on and see how Eclipse Software is your partner in the ever changing landscape of recruitment.
Increased demand in public and green sectors:
With the budget’s allocation of £25 billion to infrastructure and £3.4 billion to the NHS, recruitment agencies are poised to see heightened demand in construction, healthcare, and renewable energy sectors. This push aligns with Labour’s economic recovery agenda. It allows agencies to target roles in engineering, healthcare, and project management more actively to meet the anticipated rise in vacancies.
Eclipse Core Pro specialised job-matching tools can help agencies quickly identify suitable candidates, allowing them to efficiently fill roles in these high-growth areas.
Skills Development Incentives:
The Growth & Skills Levy, designed to boost workforce readiness, encourages agencies to establish talent pipelines in emerging green energy and tech areas. By collaborating with training providers or setting up internal upskilling programs, agencies can stay competitive by developing a skilled workforce ready to meet sector-specific needs.
Eclipse Core Pro can streamline skills-based tracking to support the Growth & Skills Levy initiative. Through talent management features, agencies can track candidate skills and certifications.
Regulatory and Cost Adjustments:
A likely increase in National Insurance Contributions (NIC) and possible changes to the Capital Gains Tax (CGT) will elevate operational costs for agencies, especially those relying on temporary staffing. Labour’s anticipated Employment Rights Bill could further standardise employment terms, affecting pay structures and benefits for temporary workers, which might require agencies to adjust their pricing or contracts to maintain profitability.
The potential adjustments to pay structures, benefits, and contracts due to the Employment Rights Bill will require flexibility. Eclipse Software offers comprehensive financial management features that support contract customisation, payment tracking, and billing adjustments.
Technological Adaptation for Cost-Efficiency:
Rising costs linked to compliance and NIC increases may push agencies to integrate more automation and AI tools in recruitment processes to cut costs. These tools can help with efficient candidate tracking and administrative tasks, offsetting some of the budget’s financial pressures on agencies.
In summary, the UK’s budget presents both opportunities and challenges for recruitment agencies. With increased investment in infrastructure and green sector, demand for skilled professionals is on the rise. However, rising costs and regulatory changes may impact operational efficiency. Eclipse Software can help you navigate this evolving landscape by streamlining processes, optimising costs, ensuring compliance, and adapting to industry trends.
