Many contractors may use recruitment agencies to find work, but
most would prefer to be contracting directly with clients or
looking for assignments via an internet job site, according to a
recent survey by Contractor UK.
The on-line study, carried out in association with contractor
consultancy eVirtualCompany, and PricewaterhouseCoopers, recently
polled 420 IT contractors on their attitudes towards finding work
and selecting recruitment agencies.
The research found that while 64 per cent of respondents
currently use agencies to source assignments, only 18 per cent want
to continue doing so. Rather the survey claims that many
respondents (67 per cent) would prefer to adopt a direct approach
when looking for future work, followed by the use of internet job
sites (52 per cent), and word-of-mouth from fellow contractors (44
per cent).
According to Robert Godlonton, managing director of
eVirtualCompany, the findings confirm an "overriding trend" seen
among IT contractors recently, of moving away from the agency way
of working, for reasons such as the perceived impact of agency
margins on /rates received.
Despite this however, agencies still hold an appeal. When asked
what factors tie them to recruitment consultancies, respondents
listed earning potential, availability of jobs and agency
commission as the most important. Non-financial factors included
timely and accurate administration, IR35 compliance and the
agency's client base. However, financial planning, including tax
and accountancy advice, was rated by just 9 per cent of those
questioned. "With the end of the tax year looming, it is worrisome
that so few contractors consider tax and accountancy advice to be
of importance," comments Godlonton. "This confirms our view that
the majority of contractors have not taken appropriate action
regarding IR35, and could risk huge penalties in April."