Technology Recruitment Team

Is the repeal of the 2017 and 2021 reforms to the off-payroll working rules as part of last month’s ’Mini Budget’ statement the good news our contractors, employers and agencies wanted? What do you think? Are you ready for a change and do we actually know what the new legislation will mean?

Dave Hedges is a tax partner at Azets and says there is “an absence of fine detail” around how HMRC will manage the transition over the coming months. “While the changes are welcome and have been lobbied for, we are advising clients throughout the engagement chain to tread carefully pending clarification,” he said.

Some questions remain following the chancellor’s announcement that the Off-Payroll Working (OPW) rules are to be repealed from April 6th 2023. There are three main reasons for this:

1. Is it really going to happen? Nothing has changed yet and we have a Budget coming up in November, preceded by a government already doing a U-turn on its 45p tax rate plan. The possibility of further U-turns therefore seems significant. Fingers crossed that this promised repeal of the OPW rules goes ahead. But it’s not certain.

2. End-clients (both public and private sectors), agencies, umbrella companies, accountants and IR35/OPW advisers are all taking stock and wondering how this could affect their business. And yes, that goes for me too!

3. Contractors are realising that unless they have always been outside IR35 and working for ‘small’ companies (not affected by the OPW rules), that their own circumstances are complicated.  Notably where the contractor is:

   1. currently with an umbrella, or

   2. holding an SDS where the client has stated ‘inside IR35’, or;

   3. regularly jumping between their PSC and an umbrella company depending on the IR35/OPW assessment.

At this stage (Q4 2022), nobody knows how the repeal of the OPW rules will work. That’s the unpopular, hard truth.  Many commentators are reaching for their crystal balls, with some suggesting that there will be new rules for contractors added onto the IR35 rules of old (2000), such as requiring contractors to complete Status Determination Statements. There’s even the odd whisper that end-clients will continue to determine IR35 status; that blanket bans on using PSCs will continue indefinitely, and that HMRC will declare some sort of ‘amnesty’ on prior SDSs with ‘inside’ results. As interesting as they are, these really are only opinions at this stage and should be taken as nothing more.

So what can we do now? Every part of the contracting chain needs to use this time to analyse the effects on their own businesses and it is vital that all get up to speed with IR35 version one (2000). 

• Keep watching the contractor press for developments (the contractor ‘press’ that doesn’t just stick a press release up!).

• Decide what you want to do -- if you could.

• Collect and keep all evidence including SDS outcomes, online IR35 status tool outputs, end-client correspondence, contract review results, and working practices changes/opinions.

• Find out about your personal situation now, to see what the options and (above all else) the risks are, and if a change in your status is feasible.

• Speak to your client and find out what their position may be come April 6th 2023, especially if you are contracting with an organisation that has banned PSCs.

• Take advice from only those that, as impartial as possible, understand all the rules (from 2000 onwards), and ideally those with hands-on experience of successfully defending IR35 HMRC investigations.

This could be great news for professional interim and self employed workers, it could be great news for large private companies and the public sector to attract and retain key skills to help them deliver growth and it could be great news for those involved in the supply of these people. For now, keep up to date, get planning and be ready, April will soon be here…

In an era defined by technological advancements, it comes as no surprise that artificial intelligence (AI) has made significant strides in transforming various industries. One such sector that has witnessed the impact of AI is recruitment, and the public sector is no exception.

As a public sector recruitment agency, we have closely observed the integration of AI into our processes, prompting us to delve into the realm of possibilities and contemplate its potential benefits and drawbacks. In this blog, we explore how AI could replace certain systems and discuss the pros and cons of employing this cutting-edge technology.

Replacing Traditional Systems with AI

• Candidate Sourcing and Screening
  Traditionally, sourcing and screening candidates has been a time-consuming process that involves sifting through countless CVs and applications. With AI, however, automated systems can swiftly analyse CVs, extracting relevant information such as qualifications and experience. By leveraging AI, recruitment agencies can significantly reduce the time and effort required for candidate selection, thus improving overall efficiency.
• Applicant Tracking Systems (ATS)
  Applicant Tracking Systems have long been an integral part of the recruitment process, helping manage CVs, track candidate progress, and streamline communication. AI-powered ATS platforms can take this a step further by using natural language processing algorithms to identify keywords, match candidates to job descriptions, and even predict the suitability of an applicant for a particular role. Such advancements eliminate human biases and ensure fair and accurate evaluations.
• Interviewing and Assessment
  Conducting interviews and assessments is a crucial aspect of the recruitment process. AI has paved the way for video interviewing tools that employ facial and speech recognition algorithms to assess candidates. These systems can analyse facial expressions, tone of voice, and language patterns to gauge a candidate's suitability for a role. AI-powered assessment tools can also evaluate skills through gamified simulations or coding challenges, providing an objective and standardised evaluation.

Pros and Cons of AI in Recruitment

Pros

• Enhanced Efficiency: AI streamlines and automates various aspects of recruitment, saving time and resources. This allows public sector recruitment companies to focus on more strategic and value-added tasks.
• Improved Accuracy: AI eliminates human biases, ensuring fair evaluations based on merit and qualifications. This promotes diversity and inclusivity in the recruitment process.
• Enhanced Candidate Experience: AI-driven systems can provide candidates with real-time updates, personalised recommendations, and valuable feedback, fostering a positive experience throughout the hiring journey.

Cons

• Ethical Concerns: The use of AI in recruitment raises ethical considerations such as privacy, data security, and algorithmic biases. Recruitment agencies must navigate these challenges responsibly and ensure transparency in their processes.
• Lack of Human Touch: While AI brings efficiency, it may lack the human touch and intuition that can be valuable in assessing certain soft skills or cultural fit. Maintaining a balance between AI and human involvement is crucial to provide a comprehensive evaluation.
• Initial Investment and Training: Adopting AI technologies requires financial investment and staff training. Recruitment agencies need to carefully consider the cost-benefit ratio and allocate resources accordingly.
• Potential Bias Reinforcement: While AI has the potential to eliminate human biases, it can also perpetuate bias in the recruitment process. AI algorithms are only as unbiased as the data used to train them, and any dataset may contain implicit or explicit biases. If the historical data used to train the AI systems reflects biases present in society, such as gender or racial biases, the algorithms may inadvertently reinforce those biases.

The Future of AI in Recruitment

Looking ahead, AI has the potential to revolutionise the recruitment landscape even further. Here are a few areas where future AI advancements could bring significant changes:

• Predictive Analytics
  AI-powered algorithms can analyse vast amounts of data to predict future workforce needs, identify skill gaps, and make proactive hiring decisions. This can assist recruitment agencies in better workforce planning and talent management.
   
• Chatbots and Virtual Assistants
  AI-driven chatbots and virtual assistants can streamline the initial stages of candidate engagement, providing instant responses to frequently asked questions, scheduling interviews, and even conducting preliminary assessments. This can enhance the candidate experience and free up human resources for more complex tasks.
   
• Skill Development and Training
  AI-powered platforms can identify skill deficiencies among existing employees and recommend personalised training programs. This proactive approach can help public sector organisations nurture talent from within and bridge skill gaps effectively.

AI has undoubtedly revolutionised the recruitment landscape, offering public sector recruitment companies a range of benefits. By automating processes, streamlining candidate selection, and improving accuracy, AI systems can significantly enhance efficiency and fairness in the recruitment process. However, it is essential to approach AI implementation with caution, addressing ethical concerns and striking a balance between technology and human involvement.

As the future unfolds, the integration of AI in recruitment will continue to evolve, shaping the ability to attract the best talent while upholding its core values of transparency and fairness. We are committed to staying at the forefront of technological advancements in the recruitment industry. If you're looking for an efficient, inclusive, and forward-thinking recruitment partner, contact us today at info@morganhunt.com