Contractor pay growth outstrips “permies”

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Contractors appear to be victorious in the battle of income as a new study suggests “permie” pay is lagging behind.

Staffing firm Venn Group found a 4% pay increase amongst contractors securing a new assignment in June, with the average day rate now standing at £278. Pay rises were less pronounced for those in permanent employment, with the Office for National Statistics recording a typical 2.7% salary increase in the three months to April.

Venn’s findings identified a demand for contractors in technology and digital roles due to the need for specialist expertise to fulfil assignment requirements. Skill gaps continue to plague businesses, resulting in professionals commanding a higher pay rate for their services. The data found that developers are earning up to £350 a day and IT service managers are making in excess of £600 a day.

Jodie Finn, associate director of Venn Group, commented: “Activity across commerce and industry remains high post-election, but June saw particular demand for senior IT specialists to implement systems fit to manage future growth.

“There has specifically been demand for IT service managers with solid experience in managing design, implementation and integration, and this is reflected in the rates that these professionals can command.”

She added: “There was also an increase in demand for digital designers and online content editors to oversee projects to improve online visibility, user experience and engagement. Professionals with particular experience in working cross-platform are highly sought after to implement a ‘joined-up’ online presence as companies continue to recognise and respond to changing user expectations. Contractors working in this area are currently commanding in excess of £190 per day.”

Venn Group’s London Recruitment Index also revealed a 2% increase in demand for contractors in the public sector. NHS Trusts and clinical commissioning groups turned to professional interims to review spending patterns and suggest necessary procedures to increase efficiency.

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