Contractors from abroad keep the UK highly skilled, competitive and opportunity-rich

IR35 Test

Inward migration of highly skilled contractors from European Union (EU) and non-EU countries is one of the reasons that the UK’s flexible workforce is a global leader. Clients gain maximum choice from a free market and UK-based contractors must be highly competitive as a result.

Recent reports by the Migration Advisory Committee, the National Institute of Economic and Social Research (NIESR) and Migration Watch UK are contradictory in their assessments of the benefits, or otherwise, of immigration.

However, anecdotal evidence and long experience suggests that competition in contracting, no matter what the source, is a positive thing. So, if inward migration helps to increase competition, then bring it on!

The UK is an acknowledged global leader in many sectors of industry and commerce. These include financial services, energy and oil and gas, the creative industries, education and training, medicine and life sciences, business services and engineering – the list continues.

It is therefore no surprise that most of these sectors have an extensive, active and vibrant contracting and freelance workforce composed of workers of UK, EU and non-EU origin. That highly skilled flexible workforce of knowledge workers provides clients in the UK with virtually unrivalled choice and quality.

Choice and quality keeps clients in the UK, or influences them to locate or relocate here. Restrictive practices that reduce choice and quality drive highly mobile transnational clients elsewhere. That simply takes their skills and talent demands to jurisdictions without such restrictions.

Many of the UK’s contractors, of all nationalities, command high rates. These rates are justified because the UK contracting sector draws on a global talent pool, attracting the very best of specialists in their field in a highly competitive and meritocratic marketplace.

It remains competitive and meritocratic because contractors put themselves on the line every day, pitching themselves against other contractors for new work. The best contractors, who keep their skills at the cutting edge, win the work and stay in business. It’s a Darwinian struggle. The contracting ‘gene pool’ is truly international in scope and constantly evolving by developing expertise and learning new skills to stay competitive.

Inward migration holds no fears for UK-based contractors because it gives them a reason to constantly improve and innovate. And if migrant contractors are being chosen by clients in a free market in preference to indigenous contractors, what does that say about, and to, home-grown UK workers?

What it should say is: you’re lucky enough to be based at the heart of a booming, global market, but you’ll need to constantly improve and evolve to survive and thrive.

Published: Monday, January 23, 2012

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