As we progress through 2024, the ERP market continues to evolve, shaped by economic pressures, political changes, and shifting workplace dynamics. At Broster Buchanan, we’ve observed several key trends impacting both employers and candidates across all sectors in the UK.
The job market for ERP professionals will remain highly competitive in 2024. We’re seeing an ongoing and persistent skills shortage, particularly for roles requiring specialised expertise or industry-specific knowledge.
Whilst job flow in the first half of the year has seen a significant decline in the number of available roles coming to market at all levels from ERP Application support to Programme Director, we are yet to see a mirrored increase in available candidates. In most recruitment markets there is a counter-lever effect that sees the number of available candidates dictating the number of available jobs, i.e. as numbers of vacant positions increase, usually, the number of available candidates decreases, in turn, making it more competitive and challenging to hire. This doesn’t appear to be the case in the current market so whilst there are fewer roles to be filled, the ongoing scarcity of talent has led to increased competition amongst employers, with many organisations struggling to fill critical positions.
Changes to IR35 have been controversial to say the least with the UK’s contractor PSC (Ltd Company) population has been more than cut in half by IR35 reform, with up to 200,000 contractors no longer limited. This has significantly changed the UK contractor landscape and many senior figures have spoken out in concern as a result, with the chair of the Public Accounts Committee (PAC) saying that the PAC is “concerned” about HMRC’s approach with IR35, and they are “deterring legitimate economic activity.” Furthermore, “We are concerned that a lack of confidence in how to apply the [OPW] rules, together with HMRC’s tough approach when taxpayers make mistakes, is deterring companies from using [PSC] contractors unnecessarily.”
Whilst this, combined with a recession and political uncertainty pre election has reduced overall IT hiring, there is still a fight for the top talent, but perhaps not a “war” as it was previously. We are certainly seeing contractors becoming more flexible on day rates compared to pre and mid pandemic, and companies looking to take advantage of this to save on their bottom line. However the ERP market is still growing and predicted to continuing growing at a very healthy rate over the coming years.
The remote work revolution post pandemic has permanently changed the recruitment landscape. According to a recent survey by the ONS, 62% of UK employees now work remotely at least some of the time. This has opened up the talent market geographically, enabling employers to tap into a bigger pool of candidates outside of previous geographical confines. However, major companies like Google, Apple, and Meta are actively recalling employees back to the office, citing concerns about productivity, collaboration, and maintaining a consistent company culture among remote workers. Change in legislation (Employment Relations Flexible Working Act 2024) will be something to monitor over the coming years as the recruitment market continues its ever changing landscape.
We can hope that with the election concluded there is more confidence in the UK economy, and therefore more confidence to invest in expensive projects such as ERP transformations, which will result in a better job market for candidates. However, with the rise of AI and an ever shifting landscape, only time will tell. Let’s see what October’s budget brings.
For candidates, the market offers numerous opportunities but also requires a commitment to continuous learning and adaptability. Those who can demonstrate a blend of technical expertise, soft skills, and the ability to navigate change will be well-positioned in this competitive landscape.
Should you be interested in hiring staff, or considering your career options, there are a great many opportunities to be achieved in the current market, but we can guide you through what is still an uncertain, and, at times, unpredictable market.
Lee Clarke
Business Director
