We’re now well into 2025 and it’s been a busy start to the year for Sanderson Government & Defence. But what can we learn from the last few months, and what can we expect from the rest of 2025 in the world of recruitment?

We sat down with G&D’s Head of Recruitment Services James Corcoran for his opinion on how the government and defence market has been looking and where it might be heading.

Focusing on permanent hiring

Well things are changing. It’s been a topsy turvy market over the course of the last 18 months where I’ve seen many organisations swing from putting all their focus on contract hiring, then onto permanent hiring and then back again in a recurring cycle.

But as we started this year, I’ve noticed more stability. Since beginning 2025 with a heavy focus on contract hiring, there’s been a huge shift in interest and conversations leaning more towards permanent hiring. The G&D team have been flying from meeting to meeting lately handing queries from customers on how to design, implement and then deliver numerous projects needing permanent hires.

To be honest, this was a trend I was expecting due to the increase in employer National Insurance contributions the government is implementing, and also the similarities in the market trends to the post financial crisis market. Companies are wanting more value for money with better return on investment, so I’m pleased to see the growth of businesses becoming more attune to the cost of hiring and the value of permanent staff – we’re moving away from the trend of just “hire and hope”.

Filling the skills gaps

Then there’s the change in attitude to the skills gaps that have been present in the government and defence job market.

While some of these gaps will remain due to reactive hiring spurred on by programme wins across the industry, a lot of these gaps will also be plugged. I expect to see a burst of strategic hires taking place in more challenging positions to fill any future skills gaps, as well as training programmes to further plug these gaps.

I strongly believe that its vital companies continue to focus on overcoming their skills gaps to ensure they’re preparing for the future. In my experience it’s key to show stakeholders the return on investment this will bring in order to get everyone on board with hiring pushes or training programmes. We would advise ring fencing a project that has defined outcomes that all stakeholders have agreed on, to increase engagement, foster commitment and prove value for money.

How can we help?

At Sanderson Government & Defence we have a wealth of experience in bringing stakeholders on this journey to ensure your training programme or recruitment drive gets off the ground.

We specialise in starting these conversations, setting up reskilling programmes and sourcing hard to find and hard to reach skill sets that will support your programme of work. The key is to deliver a tailored, outcome orientated service to ensure best value for money and best return on investment – the exact type of work that gets us up in the morning!

If this sounds like something your organisation needs, or you’d just like to chat about how you can start addressing your permanent hiring needs or how to start filling skills gaps, then please do get in touch with me on [email protected]

We recently launched our much-anticipated Financial Services Hiring Trends Report which focuses on Digital, Technology, Change and Transformation hiring in the Financial Services sector. The Report delves into how hiring in 2024 compared to the previous year, how hiring demand was split across the UK and what the most in demand roles were across the financial services sector.

But what did the data show us about trends in London?

Permanent finance vacancies

According to data from VacancySoft and reviewed by our expert recruiters, the hiring demand for permanent vacancies covering digital, technology, change and transformation in the UK financial services sector has remained highest across Greater London and the South-East of England.

In 2023 there were 2194 vacancies in Greater London, and then an equally high 2099 in 2024. Looking at the South-East region, there were 782 vacancies in 2023 followed by 769 in 2024.

These vacancies are miles ahead in numbers compared to the rest of the UK. For example, the North-West only saw 359 and 296 vacancies in 2023 and 2024 respectively, and the West Midlands only had 291 and 256. This confirms that London and surrounding areas are a real hub of talent and that there continues to be a real demand for talent in the financial services sector.

Hiring trends in London

London is one of Sanderson’s largest markets in the financial services sector, with our expertise spanning across General Insurance, London Market Insurance, Life & Pensions, Investment Management, Banking and Building Societies.

When you look at the hiring trends in this region across the world of Finance, it’s clear that London continues to lead the way in UK in digital, technology, change and transformation hiring in the financial services sector. Hiring demand in London has also been more resilient to the impact of external factors like political uncertainty and economic challenges. This is demonstrated by vacancies across the UK declining by 8.5%, whereas they only declined by 4.4% in London – a clear indicator that the market in London remained strong. Also, the trend we saw back in 2023 of a shift away from London towards regional hubs such as Manchester has slowed.

What will the future look like?

It’s clear that London is at the centre of hiring demand in the financial services sector. But what else should we be aware of in this region and sector?

One thing we’ll be keeping a close eye on is the return to the office, particularly in Financial Services firms in London. We’re already seeing more consistent patterns of 3 days per week in the office and a some of our clients returning to as many as 4 days in London across all roles regardless of whether they’re in digital, technology or transformation.

This is a marked swing back towards the majority of the week being spent in the office, and while hybrid working is here to stay, it does mean less choice for job seekers requiring more remote roles.

I’d therefore expect that we start to see less movement in this sector based purely on what hybrid working schedules companies are offering and instead see trends returning to a more level playing field with other factors in the job offering holding more weight as we progress through 2025/2026.

Next steps

Are you ready to find out more?

As we leave Q1 behind, now is the time to start thinking about enhancing operational efficiencies, addressing your skills gaps and supporting the reskilling of your existing workforce with the right blend of permanent employees, contractors and consultancies.

Arm yourself with data produced by Sanderson’s market-leading experts by downloading a copy of our Financial Services Hiring Trends Annual Report by filling out the short form below.

Have any further questions or considering how your London based business can get ahead of these hiring trends? Don’t hesitate to get in touch with Joss Collins on [email protected]

In the rapidly evolving digital landscape, the future skills required by the workforce are changing at an unprecedented pace. The World Economic Forum’s 2024 report on “Fastest Growing and Declining Jobs by 2030” highlights the essential skills needed for the future, presenting both significant opportunities and challenges for the UK government and defence sector.

The Opportunity

The future job market is rich with potential for innovation and growth. For the UK government, this means an opportunity to harness new technologies and methodologies to improve public services and national security.

According to the World Economic Forum report, the fastest-growing jobs include roles such as big data specialists, fintech engineers, and AI and machine learning specialists.

By investing in these areas, the government can drive efficiency, reduce costs, and enhance service delivery. Moreover, the emphasis on green transition roles, such as environmental and renewable energy engineers, aligns with the government’s sustainability goals which also contributes to economic growth and job creation.

The Challenge

However, the shift towards these future skills also presents several challenges. One of the primary hurdles is the existing skills gap. Research by PA Consulting and McKinsey indicates that there is a significant gap between the current skill levels and those required for future roles. This gap needs to be addressed through comprehensive training and development programs.

Another challenge is the need for a cultural shift within government institutions. Traditional hierarchical structures may need to be re-evaluated to create more dynamic and flexible career paths. This shift is essential to attract and retain Gen Z talent, who prioritize flexibility, meaningful work, and a supportive work environment.

Conclusion

The future skills landscape presents a unique opportunity for the UK government to lead in digital transformation and innovation. However, it also requires a concerted effort to address the existing skills gap and to create a work environment that aligns with the values and expectations of the future workforce. The UK government must take proactive steps to embrace these changes, and ensure it is well-equipped to meet the challenges of the future and to continue delivering high-quality public services.

Get in touch

Would you like to chat about this topic further? Don’t hesitate to reach out to Nick Walrond or Mollie Hatton to find out more and continue the conversation.

Nick Walrond – Managing Director – [email protected]

Mollie Hatton – Head of Talent Consulting – [email protected]

We’re pleased to present Sanderson’s brand-new hiring trends report focusing on Digital, Technology, Change and Transformation hiring in the Financial Services sector in 2024.

This much anticipated report arms you with industry-leading data on how hiring in 2024 compared to the previous year, how hiring demand was split across the UK and what the most in demand roles were across the financial services sector.

It will have escaped no one’s attention that hiring trends in 2024 reflected a year of uncertainty. Thanks to economic challenges and political instability, the year saw many companies having to adopt a cautious approach to recruitment as business confidence was knocked.

Many companies in the financial services sector will currently be reassessing their hiring strategies in preparation for the changes in National Insurance contributions for employers set to take effect in April 2025, alongside ensuring they’re business strategies are aligned with the rapid digital transformation AI is bringing to the sector.

Now is the time to think about enhancing operational efficiencies, addressing your skills gaps and supporting the reskilling of your existing workforce with the right blend of permanent employees, contractors and consultancies.

This report, produced by Sanderson’s market-leading experts, reflects on how the business context has been impacted in the past and provides our predictions for the future of hiring in the financial services sector.

Download your copy by filling out the short form below and get all the data you need in your back pocket.

Have any further questions on the trends discussed in this report? Don’t hesitate to contact William Boney at [email protected]

An MSP explained

An MSP (Managed Service Programme) is an outsourcing solution in which a partner takes responsibility for managing the contingent workforce for an organisation.

The contingent workforce can be made up of temporary employees, contractors and consultants deployed under Statement of Work (SoW) agreements.

Typically, an MSP partner will manage the full contingent worker lifecycle from resource planning and approvals, through the end-to-end recruitment process, to onboarding, payroll, extension management and offboarding. In addition, an MSP partner provides market intelligence and guidance, access to great talent, consistency of process, compliance, cost management and reporting across the contingent workforce.

Who may benefit from an MSP?

When they first started, the main appeal of an MSP solution was focussed on the time savings and efficiencies associated with the management of the contingent worker process.

Enterprise organisations with large contingent worker populations (250+), would appoint a partner to ensure that roles had been approved, to co-ordinate the recruitment process and to centralise time keeping and invoices into one, consolidated format.

The introduction of VMS technology has automated much of this process, enabling MSP providers to expand the scope of the service across multiple geographic areas, or, to focus their attentions on cost saving, risk mitigation, and access to high quality contingent talent.

With more agile MSP partners entering the market, size and scale is no longer a barrier to entry for organisations.

What should I be asking before starting an MSP?

The key questions any potential MSP buyer should ask themselves before getting started are:

Are contingent workers a consistent part of your resourcing strategy?

Would you like to access the best contingent talent in the most cost-effective manner?

Is it important that your contingent workforce complies with local regulations and legislation?

Do you struggle to gain visibility of contingent workforce spend across your business?

Does recruiting, managing, and onboarding contingent workers take up more time than you would like?

Ready to find out more?

If you’re looking to deliver real business value from your contingent workforce and are ready to get started with an MSP, download our ultimate guide to getting started today.

Answering all of your questions from what types of MSP are available to you, what the benefits are through to how to get started, this Guide will set you up for success.

Have any more questions? Reach out to Steve Phillips today [email protected]

Did you know that London is starting to lose Data Engineer talent to other UK markets like Manchester and Bristol, with 5 and 4% of the talent pool being based in these cities respectively.

In this new Monthly Spotlight Report we shine a light on the Data Engineer market to give you a better understanding of why companies may be looking to hire outside of the capital in order to reap cost saving benefits as well as what a typical Data Engineer career path looks like, plus laying out actionable data from Cardiff to Edinburgh on salary ranges, gender breakdowns and experience levels.

With demand for this role seeing growth of up to 30% last year, make sure you’re equipped with the best hiring data to get you ahead of the curve by downloading this new Report today.

In a world where everything’s going digital, the need for tech-savvy talent in the defence sector and central government is huge. The government’s push to use AI to cut costs and boost efficiency is a big deal. But getting Gen Z, the digital natives, on board is still a challenge.

Research by PA Consulting and McKinsey reveals a significant gap in awareness and interest among those aged 13-27 regarding careers in government and defence. This highlights the need for a strong employee value proposition that speaks to Gen Z.

What Gen Z Wants

The research found four key things that matter to Gen Z:

• Flexibility
• Mental health and wellness
• Ethical practices and value alignment, and
• Variety.

These are crucial for creating roles that attract young talent.

Showcasing Career Variety

Gen Z loves diverse career opportunities and the chance to try different roles. However, almost half of the Gen Z respondents didn’t know about the wide range of roles in government and defence, such as AI specialists, cybersecurity experts, policy advisors, and project managers. Closing this knowledge gap is the first step to attracting young talent. It’s also important to highlight career progression.

Over a third of Gen Z respondents think the sector offers chances to develop a variety of skills and clear career paths. Investing in training programs and promoting these opportunities can make careers in government and defence more appealing.

Highlighting Meaningful Work

Meaningful work is a big motivator for Gen Z. The research found that many respondents believe roles in government and defence make a positive impact on society. However, there’s a need to better communicate how these sectors tackle global challenges and contribute to a safer, more sustainable future. For example, the government’s AI and digital transformation initiatives aren’t just about efficiency; they’re about improving public services and enhancing national security. Sharing success stories and case studies that show the positive impact of these initiatives can help align the sector’s values with those of potential recruits.

Promoting Flexibility and Wellness

Flexibility and a good work-life balance are top priorities for Gen Z. Yet, only a small percentage of respondents felt that the government and defence sectors offer flexible working conditions. There’s a clear opportunity to build more choice and control into these careers, such as remote work options and flexible hours.

Mental health and wellness are equally important. Creating a culture that prioritises mental health and provides a supportive environment can make a big difference in attracting and retaining young talent. This includes fostering psychologically safe workplaces where employees can learn from mistakes and develop the right behaviours.

Implications of Delayed Evolution

If these changes are implemented too late, the consequences could be significant. The government and defence sectors may struggle to attract the necessary talent to drive digital transformation, leading to a lag in technological advancements and efficiency. This could result in higher operational costs and reduced effectiveness in addressing national security and public service challenges.

Moreover, failing to meet Gen Z’s expectations for flexibility, mental health support, and meaningful work could lead to high turnover rates and low employee engagement. This would not only impact productivity but also damage the sectors’ reputation as desirable places to work, making it even harder to attract future talent.

The tech sector has seen similar consequences when changes were implemented too late. For instance, 70% of digital transformation projects fail to meet their goals. Companies like Nokia and Kodak are prime examples of what happens when businesses fail to adapt. Nokia, once a leader in mobile phones, lost its market share because it didn’t keep up with smartphone innovations. Kodak, despite inventing the digital camera, failed to capitalise on it and was left behind as the market shifted to digital photography. Implementing change when it comes to current and future generations is no less critical, so change is paramount.

The Way Forward

Attracting Gen Z talent is crucial for driving digital transformation in government and defence. This requires a strong employee value proposition that increases awareness of opportunities to this market as well as sharing success stories that the positive impact roles in government and defence can bring.

It’s important to emphasise variety, flexibility, and meaningful work with robust training programmes as well as a supportive culture.

The message is clear – move away from traditional hierarchical career paths and embrace dynamic, fluid career journeys. Above all, communicate the breadth and scope of roles available and the real impact these roles have on both a local and global scale.

By implementing these accountability actions with measurable outcomes, we can ensure that the strategies to attract and retain Gen Z talent are effective.

Get in touch

Would you like to chat about this topic further? Don’t hesitate to reach out to Nick Walrond or Mollie Hatton to find out more and continue the conversation.

Nick Walrond – Managing Director – [email protected]

Mollie Hatton – Head of Talent Consulting – [email protected]

Sanderson have recently been featured in the Financial Times following new research suggesting that half of UK businesses plan to prioritise investment in artificial intelligence (AI) over hiring staff due to the decision of chancellor Rachel Reeves’ to increase employers’ tax bills.

Commentators have suggested that many companies are beginning to see more of the potential that AI can offer them in terms of productivity, and a recent poll from BCG has even revealed that 44% of responders from the 251 UK businesses surveyed are investing in AI as a priority this year.

Staff with AI skills

This rise in the use of AI has led companies to look for staff with skills related to this technology.

Our data has suggested that demand for AI engineers in the UK jumped in the first half of 2024, despite lay-offs in the wider tech sector over the preceding 18 months.

James Corcoran, head of recruitment in our Government and Defence practice went on to say “AI will replace some jobs, support some jobs and generate some jobs, it will balance itself out.”

To read the full article in the Financial Times, please click here.

If you would like to access more data around the emergence of AI related skillsets, you can download our Tech & Digital Insights Report here.

Please don’t hesitate to reach out to us if you would like to discuss the use of AI in your business, or are interested in hiring staff with skills in this area of technology.

The prospect of living to 100 is now increasingly realistic in today’s day and age.

This is a topic I’ve been exploring a lot as I believe it’s crucial for the UK government and defence sector to get to grips with this and adapt to this new reality if they’re to harness the full potential of a multigenerational workforce.

In my previous blog, I explored the concept of the 100-year life and how advancements in healthcare, lifestyle changes, and technology are enabling people to live longer, healthier lives. In this next instalment, I’m taking a deeper dive into this topic thanks to exciting new research published in Nature Ageing, which reveals that baby boomers are now ageing so slowly that 70 really is the new 60.

So let’s take look…

The Slow Ageing Phenomenon

Recent studies have shown that the biological markers of ageing are shifting, particularly for the baby boomer generation. This research indicates that individuals in their 70s today exhibit health and vitality levels comparable to those in their 60s a few decades ago

This shift can be attributed to several factors:

1. Improved Healthcare: Advances in medical science have significantly enhanced the management of chronic diseases and preventive care.
2. Healthier Lifestyles: Increased awareness of the importance of diet, exercise, and mental well-being has led to healthier lifestyle choices.
3. Technological Innovations: Wearable technology and telemedicine have made it easier for individuals to monitor and manage their health proactively.

What This Means for Society

I believe the implications of this slow ageing phenomenon are profound.

As people live longer and healthier lives, we can expect to see changes in various aspects of society such as:

• Workforce Dynamics: With people remaining healthier for longer, the traditional retirement age may shift, allowing for extended careers and new opportunities for lifelong learning and development.
• Healthcare Systems: There will be a growing need for healthcare systems to adapt to the needs of an ageing population, focusing on preventive care and chronic disease management.
• Social Structures: Communities and families will need to adjust to the reality of multi-generational living, with more active and engaged older adults.

Embracing the Future

As we continue to understand the science of ageing, it becomes clear that our perceptions of age and vitality are evolving. The idea that “70 is the new 60” is not just a catchy phrase but a reflection of the remarkable progress we have made in extending the healthy years of life.

And that means that we must look to the over 50’s as a viable and long-term career group that will be critical to the health of the UK employment market.

More thought needs to be given to attracting and mobilising this generation.

The journey towards a 100-year life is not just about adding years to life but adding life to years. By embracing healthier lifestyles, leveraging technological advancements, and adapting our societal structures, we can look forward to a future where ageing is not something to be feared but celebrated, and where our working lives will extend well into our 70’s for many of us.

What this means for the Government & Defence sector

Specifically, to the world that we service, I think real thought and time needs to be given to the following points:

• How to harness multi-generational talent
• Adapting workforce policies to make them fit the generations (hire to retire policies etc…)
• Improved Health and Wellbeing policies to enable a positive extended working life
• Learning and development initiatives that enable reskilling later in careers

With well documented Digital, Data, Cyber skills shortages across the Defence and Government sectors in the UK now is the time to harness the potential of the extended working life, I really believe it will be a critical skills channel of the future.

If you would like to discuss this topic further, please don’t hesitate to get in touch with me.

[email protected]

We are pleased to announce that Sanderson and Outsource are joining forces. Sanderson has acquired Outsource, offering growth and increased capability opportunities for colleagues, candidates and clients alike.  

The acquisition will significantly expand the Sanderson Solutions group portfolio that already supports recruitment, MSP and RPO services in a number of sectors including insurance, banking and retail. Outsource have a superb reputation in the delivery of technology and engineering recruitment for the UK defence industry and Supply Chain and Logistics amongst others.  

The deal will mean that the combined group will have close to 4,000 workers under management across the UK and will ensure that all clients within the group will have the opportunity to benefit from a comprehensive suite of services to meet all of their talent acquisition needs.  

Sanderson already operate across Europe, Asia and the US and Outsource are positioned well to use this geographical reach to further develop opportunities with current clients and take existing UK MSP arrangements into Europe and the US.  

This acquisition will continue the Sanderson strategy to look for opportunities in new sectors and geographies and follows the successful acquisitions of iKas International, Sopra Steria Recruitment and Highams in the last 5 years.  

The combined business will have over 500 colleagues around the world and has excellent opportunities for growth. Outsource clients will continue to work with the people they know and trust, whilst having access to Sandersons capabilities, financial strength and global footprint.  

Jon Ball, CEO of Sanderson says; 

“This an exciting time for Sanderson, we are two independently owned businesses, both originating with pride from the Southwest. What was very apparent from our first conversations with Outsource was our shared values and cultures. We are incredibly excited about Outsources ability to take us into markets that we are not operating in and keen to provide further firepower to Outsource in the markets where we already have synergy. With our combined strengths and experiences, we can accelerate our ability to develop offerings and expand our ongoing contribution to our clients in the UK and globally. Together, we can help organisations around the world meet their most complex talent challenges.” 

Nick Dettmar, CEO of Outsource, says, 

“This marks the beginning of an exciting new chapter for Outsource.  Sanderson is a business we have admired for a long time and joining forces with them, will mean we can accelerate our growth plans and significantly expand the range of services we can offer our clients. This new partnership will also provide us with a strong platform to extend our capabilities beyond the UK. From our earliest conversations, it was clear that our two organisations complement each other perfectly—not only in our services and expertise but also in our shared values and cultures. Together, we are uniquely positioned to deliver innovative solutions to meet the most complex talent challenges, while providing an environment of stability, growth and opportunity for everyone at Outsource.” 

About Sanderson  

With over 40 years in the industry, Sanderson is a leading global talent solutions company, offering specialised recruitment services and outsourced solutions including RPO and MSP in locations across the UK, Ireland, Hong Kong, Singapore and India. Find out more about Sanderson. 

About Outsource UK 

Outsource UK is a leading talent solutions provider with over 30 years of experience, specialising in technology, engineering, logistics and supply chain recruitment. The company is renowned for their commitment to diversity, equity, and inclusion. Head over to Outsource UK’s website to find out more.