State of the Market

[FIERCE TANK BATTLE]

HMRC don’t trust you - which means deemed payments and even if you give 1% of a tulip about your pension you don’t want to be being paid via deemed payments.

I don't know what that is in this context, I don't have a pension anyway.

[BigDataPro]

Been hearing job cuts here and there. It has now arrived at my client's place. Received an email which stated "unfortunately many roles are at risk of redundancy!". Started the role 2 months ago after a gap of 11 months ... Grrrr!

[dsc]

Surprisingly even the green energy sector isn't doing great (outside the UK), I've been told loads of companies are loosing money as they are running on costs calculated before Covid and as now pretty much everything's gone up, they are effectively close to loosing money whilst delivering. Plenty of work though still, no idea how the renewal will go end of the year...

Back in the UK it seem that the defence sector is alive and kicking, so perhaps that's the back up plan...

[PCTNN]

Been hearing job cuts here and there. It has now arrived at my client's place. Received an email which stated "unfortunately many roles are at risk of redundancy!". Started the role 2 months ago after a gap of 11 months ... Grrrr!

Rumours of redundancies are emerging following the vmware acquisition by broadcom.

Redundancy emails are starting to be sent out to permanent staff. Not sure what's happening to contractors.

Also it would appear that broadcom are demanding staff to go back to the office for anyone who lives within 50 miles from an office. Strategic move in my opinion as a lot of folks who have always been working remotely will leave and broadcom will not have to pay a redundancy package.

[northernladuk]

Been hearing job cuts here and there. It has now arrived at my client's place. Received an email which stated "unfortunately many roles are at risk of redundancy!". Started the role 2 months ago after a gap of 11 months ... Grrrr!

That's because they are reducing headcount. Contractors don't count as headcount. If they are on a general efficiency drive which includes canning projects and contractors then you might be a bit nervous. But a mail about clients redundancies shouldn't worry contractors... unless you are part and parcel

A large pharma in Macclesfield had swathes of permies working at risk for the best part of the three years. A few went, most didn't and not a single contractor was affected by it.

[dsc]

It's the old lets sack some permies and take on some consultants move.

[ladymuck]

It's like buses, I tell you.

No sooner than I agree terms for a new gig and get the contract sent off for review than my network pipes up with a couple more opportunities.

Mind, I had been looking since June / July hoping to escape my current client as soon as the right opportunity came along.

[sreed]

I just started a contract today with a large co that’s undergoing ‘restructuring’ at the moment.

The manager (who himself came in only a few months ago as part of the new blood) gave me a long spiel on what was happening and essentially it boiled down to having too many long serving permies (at all hierarchies of the business) on 1.3-2x of the current market rate for those roles through annual pay rises, grade inflation, default promotions, etc.

Pre Covid they used to have 4 offices across England, now down to one in the backend of nowhere in the north which itself will be wound down in favour of a small “hub” in Brum city centre. Ever since they went remote-hybrid (primarily remote with ad hoc travel when needed) they’ve had no issues recruiting talent at very reasonable cost, which makes carrying expensive legacy staff even more unviable/unnecessary.

[JustKeepSwimming]

I just started a contract today with a large co that’s undergoing ‘restructuring’ at the moment.

The manager (who himself came in only a few months ago as part of the new blood) gave me a long spiel on what was happening and essentially it boiled down to having too many long serving permies (at all hierarchies of the business) on 1.3-2x of the current market rate for those roles through annual pay rises, grade inflation, default promotions, etc.

Pre Covid they used to have 4 offices across England, now down to one in the backend of nowhere in the north which itself will be wound down in favour of a small “hub” in Brum city centre. Ever since they went remote-hybrid (primarily remote with ad hoc travel when needed) they’ve had no issues recruiting talent at very reasonable cost, which makes carrying expensive legacy staff even more unviable/unnecessary.

Sounds like a race to the bottom. Ie, salaries/rates are going to be whatever is cheapest in the UK rather than London rates/salaries for all.

In a way that's good for the UK long term in equalising the country. The other way it's going to be very painful for those in the SE and other high COL areas.

As an aside, I've worked on projects which were basically 'Yeah we are going to screw over some of your co-workers'. It's rough.

Legacy FS employees have some absolutely crazy contracts when it comes to redundancy. 1 month for every year worked, 20+ years service...

[sreed]

Sounds like a race to the bottom. Ie, salaries/rates are going to be whatever is cheapest in the UK rather than London rates/salaries for all.

In a way that's good for the UK long term in equalising the country. The other way it's going to be very painful for those in the SE and other high COL areas.

As an aside, I've worked on projects which were basically 'Yeah we are going to screw over some of your co-workers'. It's rough.

Legacy FS employees have some absolutely crazy contracts when it comes to redundancy. 1 month for every year worked, 20+ years service...

Setting aside my personal situation, I think a reduction in the rem gap (at least for desk-based knowledge workers) between London+SE vs rest-of-UK is an overall positive for the country long-term and if interest rates stay at or close to current levels, any adjustment is probably going to show up most prominently in house prices.

My hope is that all this will happen gradually but I think the Covid years accelerated a lot of changes which need to pass through the system before things settle down a bit. Plus with regard to the UK knowledge-worker job market, there’s the unknown of how much longer the effectively open-door immigration policy will continue from the subcontinent (and other relatively poorer parts of the world).