Key IT / Engineering skills hirers are increasingly embracing remote work to source from wider geographical pools…
Remote working trends…
… of employers in the Information and Communication sector are using or planning to use increased homeworking as a permanent business model
This is a decrease from the...
... peak in January 2023 but remains slightly above …
…the initial pandemic peak of…
... It appears the sector has settled into a 'new normal' level of remote working, maintaining flexibility to during times of worker shortages.
The Information and Communication sector serves as a useful indicator of remote working trends for IT and Engineering professionals in the UK. Currently, 42% of employers in this sector are using or planning to use increased homeworking as a permanent business model. This is a decrease from the peak of 62% in January 2023 but remains slightly above the initial pandemic peak of 41%. It appears that the sector has settled into a 'new normal' level of remote working, maintaining flexibility to meet candidate preferences during times of worker shortages.
The top 3 reasons why employers in this sector remains open to remote working are reduced overheads, improved staff wellbeing and increased productivity. Around 3 in 10 within both sectors also cite the benefit of reduced carbon emissions.
The Information and Communication sector is also capitalising heavily on the ability to source from wider geographical pools via remote working, both domestically and internationally.
Drivers for the increased use of homeworking as a permanent business model in the UK Information & Communication sector, May 2024
Drivers for using increased homeworking in the UK Information & Communication sector: the ability to recruit from a wider geographical pool
Source: Matchtech analysis of ONS data
Additionally, the adoption of remote working has allowed employers in the Information and Communication sector to recruit from a broader international pool.
This trend grew significantly, with 13% of employers citing it as a key reason in January 2023, increasing to 27% in May 2024.
Setting the UK employment landscape into international context, however, analysis of all IT and engineering roles posted in the month to mid-July 2024 shows the extent of variation by country - with Eastern and Southern Europe, Ireland and LATAM countries offering notably higher proportions of remote working opportunities than are being advertised by employers in the UK.
Percentage of job ads for IT and Engineering roles in the month to 16 July 2024 advertised as remote
Source: Matchtech analysis of LinkedIn data
The data in the graph is interesting for two reasons. First, it highlights countries where competition for skills remains high from both local and international employers, as many countries with high proportions of remote working are key nearshore talent pools. Second, it supports earlier evidence that UK employers are increasingly accessing international talent through remote working. So, while domestic acceptance of remote working for key IT and Engineering skills may have plateaued, its use is growing in targeted recruitment of talent outside the UK.
Key takeaways and recommendations:
For employers of IT & Engineering talent, the key benefits of remote working extend beyond those well documented by candidates: employers wedded to the model cite increased productivity and reduced overheads as two of their key drivers for ongoing adoption.
For employers of IT & Engineering talent, the key benefits of remote working extend beyond those well documented by candidates: employers wedded to the model cite increased productivity and reduced overheads as two of their key drivers for ongoing adoption.
Whilst use of the model may have plateaued in the UK, be prepared for offers of remote work to spike when domestic competition for skills increases again (as was evidenced in 2022 and early 2023). Where it is currently on the rise, however, is amongst UK employers strategically accessing overseas talent – driven by either cost and/or scarce skills drivers.
Whilst use of the model may have plateaued in the UK, be prepared for offers of remote work to spike when domestic competition for skills increases again (as was evidenced in 2022 and early 2023). Where it is currently on the rise, however, is amongst UK employers strategically accessing overseas talent – driven by either cost and/or scarce skills drivers.
Key considerations for employers looking to access remote offshore talent include identifying the best near-shore locations, sourcing, screening, onboarding and integrating remote near-shore talent, ongoing compliance and international payrolling. With the added complexity this entails, employers will also want to consider whether to undertake this directly or to partner with an organisation with well-established talent networks and the underpinning infrastructure to enable deployment with ease.
Key considerations for employers looking to access remote offshore talent include identifying the best near-shore locations, sourcing, screening, onboarding and integrating remote near-shore talent, ongoing compliance and international payrolling. With the added complexity this entails, employers will also want to consider whether to undertake this directly or to partner with an organisation with well-established talent networks and the underpinning infrastructure to enable deployment with ease.