If you've a sizeable Digital/Tech staff group, the chances are you already struggle to recruit and retain talent. 

You're not alone. 

Over half of UK digital businesses report shortages in attracting and retaining tech talent - and many fill the gap with some of the UK's 170,000 IT contractors. 

So what will be the impact of IR35 next year? 

Looking over at the public sector (where IR35 has been in place since 2017) there are some clues. 

Back then there was a mass exodus from the sector, with an estimated 50% of contractors leaving - the vast majority to the private sector and others converting to perm status - but often driving up total reward packages. 

The implementation was also relatively 'messy' with numerous complex compliance challenges. 

So what should employers do? Firstly, with no other sector to switch into, this offers a real opportunity for employers to sharpen their Tech EVP, highlighting the wider benefits of salaried employment vs contracting. 

Companies will also need to invest in significant IT development to ensure both accounts payable and payroll systems can communicate with each other, given the complexity in processing off-payroll workers’ invoices.

Final thought? Get out and start building more meaningful connections with contractors within and outside you organisation so you don't lose out next year.