UK IT contractors are a happy lot. Despite a slowing economy, they not only believe that they will earn more money in 2008, but they are also satisfied with the way they work despite constant ill-treatment from the government.
Contractors Expect 5-10% More
According to a survey taken by the Watford-based chartered accounting firm JSA, which specialises in contractor affairs, over 60% of UK’s IT contractors expect their pay to rise by between 5-10% during 2008. Contractors aren't naive either; they know the economy is worsening, and that there won't be an increase in demand (although they don't expect a slowdown either). Nearly half of them (49%) believe the market for their services will remain static during the coming year.
The survey is the third annual Contractor Expectation Survey undertaken by JSA.
Of those contractors expecting a 5%+ pay rise, 31.5% of respondents anticipate a rise of at least 10%, while 13.15% reckon on a 15% hike and 18.9% expect upwards of that figure. Despite this optimism on pay, 19.4% of respondents think that the IT contractor market will actually shrink during 2008 and only just over one third expect growth of 5% or more, according to the survey.
IT contractors in the UK expect good pay and a decent work versus lifestyle balance and they seem pretty good at identifying and achieving their aims
Barry Roback - JSA
''This survey shows that IT contractors are generally, positive, optimistic and enterprising. They expect good pay and a decent work/lifestyle balance and unlike other sectors, they seem pretty good at identifying their aims and achieving them to an unusual extent,'' says Barry Roback, chief executive of JSA.
Contractors Know They Are Needed
Why all this optimism? IT Contractors know their market, and they know how badly they are needed by the IT departments they serve. They know there is a skills shortage, and they know that the lion's share of the work in IT departments gets done by contractors and not by permies.
They Want To Stay in Contracting...
The survey also shows that once IT workers become contractors, they want to stay that way. Only one in five plans to return to PAYE employment during 2008 the survey shows. As in previous years, the survey reveals a generally high satisfaction rate with contracting. On a scale of 1 (being very unhappy) to 10 (being extremely happy) as a contractor, 83.5% rate themselves at 7 or above - a 6.5% increase over last year.
...Despite Attacks By the Government
The repeated attacks by the current Government against contractors, including the legislation that targeted managed service companies and the attack on 'income shifting' between contractor partners and spouses in limited companies have done nothing to daunt UK IT contractors. Nobody is being fooled: 90% believe that the UK has a negative attitude towards contract workers.
The survey shows that over one quarter of IT contractors (26.6%) have been affected by the new managed service company legislation, and of these, 81.2% have switched to limited companies with only 18.8% joining PAYE umbrella companies.
90 per cent of IT contractors believe that the UK has a negative attitude towards their industry
JSA
Contractors 'Just Wanna Have Fun'
Contractors, despite all their hard work and serious intentions, do particularly enjoy the flexible lifestyle that contracting offers. More than half of respondents (63.3%) say they want more challenging work in 2008 but at the same time 56.7% hope to work fewer hours in order to spend more time with their families, while (79.4%) seek more time for hobbies and personal interests.