Join Tom Beale, Recruitment Advisor at Medical Protection Society to discuss: • Internal utilisation and perception of contractors (specialist projects, BAU resource management, contingent seasonal working) • Contractor availability considering the external factors influencing contractor market (Gig Economy, Flexibility, Portfolio careers, IR35, Recruitment Agencies/ Direct Hire recruitment teams) • Permanent retention and development to stretch staff and the attitude towards contractors having the ‘rock star salary’ and ‘all the exciting jobs’

1. 1

2. 2

3. Some of our Clients

4. Applicant Tracking System

5. TribePad Video Interviewing

6. Onboarding

7. Contractor Management

8. CONTRACT V PERM
HOW TO CONSIDER THE BENEFITS OF A FLEXIBLE SPECIALIST CONTINGENT
WORKFORCE, WHILST ENGAGING PROMOTING AND RETAINING PERMANENT TALENT
Tom Beale – Medical Protection Society

9. OVERVIEW
• Benefits of recruiting Contractors and being a Contractor
• Background on the “GIG economy”
• External influences on the contracting population
• Economic uncertainty
• IR35
• Negative perception
• Rising costs
• Impact on the permanent population – Employee Engagement, Talent Development, Talent Attraction
• MPS – Seizing the opportunity to make a change

10. Benefits of being a
Contractor / Hiring a
Contractor
Remuneration
Tax Savings
Autonomy
Build your own Network
Variety Flexibility
Subject Matter
Expert
Time
Technology
Allow BAU to continue
Networks

11. “The gig economy involves the exchange of labour for money between
individuals or companies via digital platforms that actively facilitate
matching between providers and customers, on a short-term and
payment by task basis.” HMRC 2018

12. Some of the largest growing and most successful companies have utilised GIG
workers

13. The GIG economy
• Circa 3 million people have worked in the gig economy in
the last 12 months
• People enjoy the benefits of flexibility and experience
• Currently it is predominantly used as supplementary income
• 87% of people surveyed by HMRC reporting earnings of
under £10,000
• 59% of freelancers providing professional or creative
services

14. Accenture and Deloitte both predict 30% of the UK’s workforce will be freelancing or gig working by
2020. In the US, this will rise as high as 50% by 2020.

15. “All the while we consider it one coherent phenomenon, which it is not. We won’t be able to answer important
questions about how contingent labor impacts people and organizations, how gigging professionals manage their
career and well being and how organizations deal with larger numbers of contractors and giggers.”
Dr. Richard A. MacKinnon from WorkLifePsych Ltd 2019
Key consideration - To note the difference between Gig and
Contractors
• Do not label it as the same thing if you are to understand and utilise this new
talent pool
• Both have a key part to play in staffing across the UK and Global markets

16. The Contracting Market continues to grow

17. Challenges faced by Contractors
• Economic uncertainty
• Government Policy
• IR35
• Negative perception
• Rising costs

18. Contract V Perm internally
As part of our own insight at MPS looking at our contractor utilisation we found, particularly within Digital
and Change, that contractors were perceived negatively amongst the employee community.
“Rock star salaries – part
time hours”

19. MPS – striking a balance
• Carrying out an IR35 review we determined almost half were inside of scope using the CEST
tool and another 25% were undeterminable.
• Over the course of 2018 MPS had on average 50~60 contractors on a daily basis
• This equated to <4% of our employee population, but this made up >10% of staff costs
It was clear we were not using contractors effectively and we identified the need to utilise
permanent talent and build a cross skilled and flexible workforce

20. • Using contractors for specific projects only
• Design clear statements of work (SOW’s)
• Always look internally first
• Maintain an engaged and valued permanent working
population
• 27% of roles filled in 2019 have been internal
promotions
Our plan moving forward

21. Summary
• Do not group all freelancers/ contractors under the gig economy umbrella
• The Contractor market faces tough times ahead, but no more so than industry in
general with Brexit and Political uncertainty
• Specialist contingent workforce add significant value and are a vital part of the
economy which has continued to grow.
• However, they need to be used for what they are intended and not covering staffing
shortages and BAU as this is expensive and risks financial penalty under IR35
• Plan ahead, look to utilise permanent workforce for change and strategic projects.
Upskill and reward them to maximise employee engagement

22. Questions?
Tom Beale
tom.beale@medicalprotection.org
07583015111