On Wednesday 15th October 2025 Sanderson’s Recruitment Services Managing Director Will Boney and Head of Operations & Organisational Change Anna Kramer sat down with PayStream CEO Tony Hodkinson to deliver a webinar discussing the upcoming tax legislation changes that are set to have an impact on many umbrella companies and across the whole recruitment industry.

Will, Karen and Tony chatted about what these changes mean and when they are due to come into force, how it affects you, and what we are doing here at Sanderson to ensure we’re compliant across the supply chain.

If you missed this webinar, you can still listen to the full recording where we cover the discussion points below, along with practical tips for businesses to navigate this period of change.

Watch the full recording of the Umbrella Reform Webinar here

The webinar covered key discussion points like:

• A clear overview of the tax legislation changes, including joint and several liability due in April 2026
• The impact of the Employment Rights Bill due in April 2027
• How this new legislation impacts you and how you can prepare for the change
• How you can protect yourself from liability and carry out appropriate due diligence, including insight into PaySteam’s own 6-Point Compliance Plan
• Exactly what we at Sanderson are doing to ensure compliance across the supply chain and to keep a smooth process for our clients and contractors
• An informative Q&A session with live and burning questions from attendees

The contingent hiring world is constantly changing, but during our work in this space recently we’ve spotted some trends.

In this blog we’ve summarised three trends that we’ve noticed in the contingent workforce world, giving you an overview of what the market is currently looking like so you can not only better understand it, but feel more prepared as you navigate your own contingent hiring plans.

So, what are the three trends we’ve noticed?

Trend 1: Total Talent Management

Increasingly, businesses are moving towards unified workforce strategies where all talent, regardless of contract type, is managed with equal importance and under one strategy or total talent solution.

Recent SIA (Staffing Industry Authority) data shows that 24% of companies with contingent workforce programmes already operate this way, and another 50% aim to follow in the next two years.

This approach can bring practical benefits like giving a clearer picture of skills across the board, better alignment between people and business goals, and the agility to flex resources as business needs change.

Ultimately, treating every member of the workforce as part of the core strategy isn’t a passing trend, it seems like it’s becoming essential for organisations that want to stay ahead.

Trend 2: Direct Sourcing

Direct sourcing is becoming a key strategy for organisations hiring contingent workers.

Rather than relying solely on third-party agencies, many companies are building and nurturing internal talent pools of contingent workers or working with partners to help facilitate this. According to the SIA, over one-third of businesses with established contingent workforce programmes are already using such direct sourcing, and another third plan to implement it soon.

The main advantages are quicker access to qualified workers, reduced costs by avoiding agency fees, and stronger employer branding through consistent engagement with talent pools and offering wider access to talent.

Trend 3: Recruit, Train & Deploy

The rapid adoption of Artificial Intelligence in business operations has had a significant impact on entry-level hiring. In fact, recent data from Indeed indicates a 33% decrease in graduate job postings for 2025 compared to 2024, with experts noting that graduates are now facing the most challenging early-career job market since 2018.

In response to these trends, businesses are increasingly considering upskilling and reskilling initiatives. ‘Recruit, Train & Deploy’ workforce solutions are expected to become more prevalent, as they directly address skills gaps by preparing candidates for specific positions and accelerating time-to-productivity.

This recruitment model can also support long-term early careers workforce planning through early investment in emerging talent and help enhance diversity and inclusion by focusing on potential and aptitude.

Conclusion

If you’re interested in learning more about these trends or having a chat to learn more about our own Total Talent solutions and Direct Sourcing capabilities, then please do get in touch.

We’ve also put together some advice on best practices for managing your contingent workforce and steps you can take to better manage this talent pool, you can check this out here: Unlocking Success: 5 steps to better manage your contingent workforce.

On Wednesday 8^th October from 10am – 2pm we’re excited to be hosting a brand-new event with Atradius Collections, Women in Tech: Inspiring Stories, proudly sponsored by Perago.

Bringing together inspiring women leading the way in digital, engineering, transformation and data, the event will feature a live panel discussion, company spotlights, and time to connect with peers from across the industry.

The event will create a space for open, honest, and thought-provoking conversations that challenge the norm, spotlight brilliant women driving change, and inspire the next generation.

But it’s not just for women, you’ll be sharing the room with professionals who are championing diversity, supporting inclusion, and want to help shift the dial in a meaningful way, regardless of gender, to build more inclusive teams. This will be a fantastic opportunity to network with like-minded peers and build connections for the future.

Why This Matters

This event is building upon our ongoing initiative exploring the real experiences of women and AFAB in tech. Through a series of interviews with professionals at all stages of their career, common themes began to emerge, including those around imposter syndrome, confidence, and feeling of being along in those challenges.

Women in Tech: Inspiring Stories will give those conversations a platform. It’s about sharing honest stories, building confidence through connection, and reminding attendees that they are not along, no matter where they are in their career. For employers, we hope this event will inspire them to reflect on how they can create environments where confidence is nurtured, inclusion is intentional, and people feel empowered to grow.

What To Expect

• Real Talk: Leadership, Resilience & Women in Tech – A 75-minute panel conversation with women in senior roles across the sector, sharing stories and strategies around confidence, growth, and career development.
• Company Spotlights – Short talks highlighting exciting tech work and inclusion efforts from organisations across the region.
• Networking – Connect with peers across the tech and digital community.
• Lunch provided – Stay and chat after the panel during our informal lunch and drinks reception.

Our Panel of Speakers

• Claire Owen – Claire is an innovator technologist with a proven track record as a founder of multiple ventures and a product leader.
• Shelby Wilson – Shelby has years of experience as an Agile Scrum Master and Product Owner. Utilising her strong facilitation, communication and organisational skills to empower individuals and teams.
• Stephanie Darbin – Stephanie is a senior technology and change leader, with a proven track record in delivering large-scale transformation across technology and business domains
• Victoria Ford – Victoria is a Managing Director with over 30 years of experience in operational delivery, communications, digital and organisational change.
• Nicole Hardiman – Nicole is a Technology leader and storyteller with a background in scaling digital platforms and leading cross-functional teams.

The Details

• Date: Wednesday 8^th October 2025
• Time: 10am to 2pm (lunch provided)
• Location: Atradius, 3 Harbour Drive, Capital Waterside, Cardiff, CF10 4WZ

Secure your spot by signing up in the link below and don’t hesitate to reach out to Abigail Tittley if you’ve got any questions.

[email protected]

Keep an eye on our socials over the coming weeks as we share our sponsor highlights, speaker spotlights and the stories from the people behind the panel.

Book Your Place Here

If you’re working in the Financial Services industry, then it will have been hard to ignore the latest changes set to take shape across the UK pensions market.

And the changes are big. The entire UK pension landscape is now on the cusp of a transformation that will have far-reaching implications, not just for savers, but for the entire financial services sector.

In this blog we’ll lay out exactly what the proposed changes are and what they might mean for talent and hiring across the financial services sector.

Let’s go.

What is the UK Pension Reform?

Well, the 2025 Pension Investment Review and the Mansion House Accord have recently set ambitious targets designed to turbocharge investment in the UK economy and reshape how retirement savings are managed. This is set to have implications across many businesses and how they run and manage their employee pension pots.

What impact will the Pension Reform have?

Under the current system, by 2030 all multi-employer defined contribution schemes and Local Government Pension Scheme pools are expected to hit £25 billion in assets under management, which will create what’s known in the industry as “megafunds.”

However, the new Mansion House Accord (which has been signed by 17 of the UK’s largest pension providers), will commit these providers to invest 10% of default fund assets into private markets, with 5% earmarked for UK-based opportunities.

Collectively, this could unlock up to £50 billion for infrastructure, private equity, venture capital, and other “productive finance” in the UK by the end of the decade.

This change represents a fundamental shift in how UK pensions are managed, how capital flows through the UK economy and what skills the sector will need.

What changes might the UK see after the Pension Reform comes into effect?

Today, only a handful of UK pension providers manage default funds above the £25bn threshold. But by 2030, that number is set to double. We’ll see smaller schemes merge or wind down, and the defined contribution market will consolidate into a small number of heavyweight “megafunds” instead.

At the same time, pension portfolios are set to pivot.

Currently, only about 2% of defined contribution pension assets are invested in private markets and that figure is expected to quintuple to 10% by 2030 which is a dramatic shift into asset classes such as unlisted companies, infrastructure projects, and renewable energy.

Will the Reform cause demand for specific job roles and skills?

So, what exactly does this Pension Reform mean for talent and hiring?

Well, according to our data we’re predicting an increased demand for the following skills:

Change and Transformation

The drive to merge dozens of smaller schemes into megafunds will create a demand for specialist skills to manage this transformation. Providers will need Project Managers, Business Analysts, Actuaries, and Integration specialists who can navigate bulk transfers, align systems, and manage cultural integration across merged schemes.

Investments

Megafunds will need to manage increasingly complex portfolios. This will drive a surge in demand for Investment Managers to source, evaluate, and structure deals in private equity, venture capital, infrastructure, and private debt and Project Finance Specialists to analyse and fund major UK projects in transport, energy, and housing.

Governance, Risk & Compliance

Higher allocations to different asset classes will bring increased scrutiny. Pension funds will bolster their risk management and compliance functions, seeking professionals who can manage stress testing, oversee charge-cap compliance, and ensure investments stay aligned with fiduciary duties.

What challenges might there be for hiring?

While an increasing demand for certain skill sets might be a good thing for the market, these changes and surges do present additional challenges.

Mainly that these skills are already in high demand. Private markets analysts, actuaries, infrastructure finance specialists, and risk experts are among the most sought-after profiles in the financial services workforce today.

For HR and Talent teams, this comes at a time when they are already juggling business-as-usual hiring, driving internal mobility programmes, and spearheading reskilling initiatives to futureproof their organisations. Layer on top the ongoing need to assess how AI will reshape roles and processes, and it’s clear that talent strategies will need to be sharper, more creative, and more competitive than ever to secure the expertise required for this pensions-driven shift.

How we can help

At Sanderson, our team are well versed in navigating the often-murky waters of the UK financial services hiring market. Not only do we have access to some of the best talent pools in the UK to get you the skills you need and fast, but we understand the complexities of future-proofing your hiring strategies while trying to manage day-to-day talent management tasks.

If you’re looking for support, or would just like to chat to us about what the Pension Reform might mean for you and your business, then reach out to us today and let’s chat about how we can help.

Is momentum finally starting to build across the Change & Transformation market?

You might have seen that we recently launched our latest Change & Transformation Insights Report where we dipped into data suggesting that 2025 is showing signs of increased activity as more and more businesses are re-engaging with their transformation agendas thanks to budget approvals and team mobilisations.

In this blog we’ll explore the noticeable uptick in M&A activity within financial services and lay out the key insights you need to know on what this means for hiring in the Change & Transformation sector.

What does the M&A market currently look like?

Looking at our data as well as sources such as KPMG’s 2025 M&A Outlook, 2024 was somewhat of a turnaround year for M&A markets. By the back end of 2024 the value of domestic M&A reached a whopping £8.6 billion and thanks to this we are seeing a huge surge in M&A activity this year.

For example, in the financial services space we’ve seen the likes of Nationwide acquire Virgin Money, Coventry Building Society acquire Co-Op Bank, Barclays acquire Tesco Bank to name just a few. And it’s looking like this growth in activity is set to continue through the rest of 2025.

What is driving this high rate of M&A activity in the financial services sector?

It largely comes down to economies of scale. Smaller financial services firms are finding it increasingly difficult to keep up with regulatory requirements, the increased need for digitalisation and wider competitive pressures.

M&A offers them the opportunity to become part of something larger and more resilient. We’re seeing strong evidence of the industry gravitating towards consolidation and a “safety in numbers” mentality as they prioritise stability over disruption.

What does all this M&A activity mean from a hiring perspective?

Well, when an M&A is initiated at a business, we usually then tend to see a significant spike in contract hiring at the beginning of this process.

Permanent roles are still important, but in our experience, we often see companies feel hesitant in committing to permanent positions while they navigate the start of such a fluid situation. Instead, hiring activity is initially focused on contractual positions and often there’s a preference for candidates who have a familiarity with “Part VII” of the Financial Services and Markets Act i.e. the legal framework for transferring assets and liabilities from one company to another. Businesses find themselves needing contractors who can fill positions like Business Analysts, Project Managers and HR professionals who can help guide them through the integration process.

With an initial focus on internal systems, as this stabilises resourcing then starts to look to permanent hires or consultancy services as they put their energy into filling customer facing roles.

What skills and attributes do employers look for when hiring for large transformation programmes like M&A?

In our experience, the skills employers look to hire for during a transformation project vary depending on the specific phase of the transformation project they’re at.

For example, if a business comes to us with a hard deadline such as getting their acquired company onto their payroll system, then delivery-focused candidates are a must.

But on the other hand, if their focus is on people and organisational change then soft skills like empathy, communication and stakeholder management become crucial.

What is the Top 5 industries for M&A talent right now?

According to data, we’re seeing a lot of activity in sectors like:

• Asset Management
• Banking
• Payments
• Fintech
• Insurance

How can you attract M&A talent to your organisation?

Looking at our data sources, while things like excellent compensation and benefits packages are still important, candidates are also favouring added benefits like flexible work arrangements, the opportunity to get stuck into impactful work and even things like collaboration in the company culture.

Are you looking to find out more?

If this blog has whetted your appetite to find out even more about the Change & Transformation market, then why not take a look at the full Report? Chockers full of industry-leading data (including salary benchmarking stats), it’s like having our expertise in your back pocket to set you up for hiring success.

And if you have any questions or would like to dig a little deeper into anything discussed in this blog, feel free to reach out to me on [email protected]

So, you’re looking to grow your headcount?

Maybe you’re looking to hire a team of specialist job roles? For example, your company is being impacted by new regulatory changes, and you’re in need of an expert team of finance and actuarial experts, but nailing down these niche skill set is starting to feel like searching for a needle in a haystack?

Perhaps you’re going through a huge transformation programme, and you need to scale your project and change teams pretty quickly?

Or maybe you’ve recently seen a rapid spike in the growth of your business or have undergone a merger or acquisition and need to rapidly integrate new teams into your existing business structure?

Whatever your challenge, if your People team are stretched already with BAU and need a helping hand or an extension of their team that comes with a large network of resources that’s yours to use flexibly, then a Project RPO could be the key you’re looking for to unlock the start of a more streamlined recruitment process.

In this blog we’ll walk you through the ins and outs of a Project RPO. We’ll get stuck into what it is, the main benefits, how this solution can help get you set up for the future and how you can get started.

Let’s go!

What is a Project RPO?

First things first, what exactly is a Project RPO?

Well, a Project RPO is a flexible recruitment solution that offers many of the benefits of outsourcing all your recruitment to a resourcing partner, but without the long-term commitment.

This is a solution that can take the form of a “one off” engagement, working as an extension of your in-house talent acquisition team to source, screen and deliver the right candidates or teams as and when you need them. Basically, acting as a helping hand, saving time for you to navigate your people strategies and day to day BAU.

Benefits of a Project RPO

It’s sounding pretty good right? Let’s dive into exactly what some of the benefits are that you get when working with a recruitment partner via a Project RPO:

Flexibility & Scalability

With this model you can deploy talent quickly and scale rapidly to meet peaks in hiring demand or as your services evolve in line with your strategic goals. You’ll also get a dedicated team always at the end of the phone if you’ve got any questions or ever want to make any changes.

Improved Quality of Hire

By using the services of a recruitment partner via a Project RPO, you’re getting access to an incredible network of talent. Using the RPOs candidate attraction process and assessment tools, you’ll have access to the best active and passive talent available. We’re talking psychometric testing and technical assessments – really getting into the details to ensure the perfect candidate fit.

Employer Brand Amplification

With a Project RPO your employer brand will be actively promoted to help you stand out in a competitive market. Your Project RPO partner will amplify your company values and brand and use marketing expertise to put together a proposition that ensures candidates see you as a desirable place to work.

Enhanced Candidate Experience

Your delivery team will take the reins to provide an enhanced candidate experience. When you’re up to your ears in admin, sometimes those key candidate touch points can slip through the cracks but with a Project RPO solution, you’ll get a personalised experience for each candidate throughout the entire recruitment process – ultimately helping to keep them engaged.

Reporting & Talent Intelligence

You’ll have access to enhanced reporting capabilities and talent intelligence platforms, empowering you to make data-drive recruitment decisions. This could be for anything from the best location to open a new office, what salaries competitors are offering to where your chosen talent demographic is based.

Reduce Costs

By streamlining the recruitment process, a Project RPO will provide you with huge cost savings. Thanks to direct sourcing and a more targeted approach to your recruitment, you’ll have more control over your budget than you would with a traditional recruitment model.

Time Saving

As well as the rapid deployment of talent, don’t forget that one of the main benefits of this model is the huge savings in time your talent acquisition team will receive. With a Project RPO you’ll be getting an extension to your team to help share the load and take some admin tasks off your desk. Imagine having someone else to sift through applications and find candidates for you PLUS getting into the nitty gritty like dealing with video interviews and all that logistical admin you’d rather not do.

Support Future Workforce Planning

A Project RPO can help enhance and shape the future of your talent acquisition strategy. Taking what you’ve learnt at the start of the project, you can use this knowledge to facilitate future workforce planning and even support your planned DE&I initiatives, remote working strategies or career pathways.

What can a Project RPO be used for?

So, there’s obviously lots of benefits. But are you wondering whether it’s the right solution for you? Here’s just a few examples of how you could use a Project RPO to smash your business goals:

Deliver project-based recruitment campaigns

Maybe you’re launching a new product or service or going through transformation and need a project team to get this off the ground? Enter: The Project RPO.

Support spikes in recruitment activity or the needs of a specific department

Do you experience seasonal fluxes of business activity and need some extra hands-on deck? Whatever reason you have a spike in hiring for, a Project RPO can help.

Support diversity and inclusion programmes

A Project RPO can be used in a variety of ways to support your DE&I initiatives. Maybe you’re pushing your early careers programme or want to make sure you’re attracting the next generation of talent? This solution can really help you break through the noise.

How to get started with a Project RPO

If you’ve got to the end of this blog and a Project RPO is sounding like the answer to your prayers and you just want to get started, we’d recommend thinking about 3 key things:

1. Determine your hiring needs and goals. Have a think about how quickly you need this talent hired. Do you want to outsource everything or just need a few extra hands on deck? Laying out your requirements early on will help you make informed decisions when it comes to selecting a partner.
2. Decide which metrics you want to track. Are you wanting to dramatically reduce time to hire? More focused on the quality of the candidates? Or maybe you’re keen to tap into the market intelligence extras you’ll get from a Project RPO partner.
3. Choose your provider. Do your research into the providers out there, making sure they have experience in your field and industry, and can even offer the sort of technology you’re looking to take advantage of.

Are you ready to get started?

If you’d like to get the ball rolling with a Project RPO solution of your own, get in touch with our team today and let’s have a chat about your requirements and how we can help you reach your goals.

In case you missed it, we recently launched a Spotlight Report focussing in on the world of Product Owners.

And with this role surging in popularity, can we take this to mean there is a growing demand for more Agile skill sets in general?

In this blog we get stuck into why our data is demonstrating a broader openness to Agile methodologies and job functions across the UK, as well as highlighting how Scotland in particular is becoming a hotspot for this talent pool.

Are you ready to take advantage of this surging demand? Let’s find out…

The rising demand for Agile skill sets

We’re now seeing that a lot of these skills are required for Product Owners (which we discussed in this blog), a job function that’s had undeniable growth. To put this into perspective, LinkedIn has reported a 2% nationwide increase in headcount for Product Owners, and as a role it’s now ranking in the Top 5 in VacancySoft’s 2024 Financial Services Review – a 30% year-on-year increase. Plus, Sanderson’s own data has shown that our hiring volume for Product Owners has gone up by a whopping 50%! This is clearly a hot market right now.

But it’s not just product focused roles that are surging. In Scotland (especially in tech hubs like Edinburgh, Glasgow and Aberdeen) we have found that Agile roles in general are picking up pace, particularly across the development, software engineering and testing space.

A distinct trend here is also how the candidates themselves are seeing the value of agile skills for their own self-development. We’re talking to candidates who want to be able to move seamlessly into different roles, “hit the ground running” and be an effective conduit between different business units and teams thanks to amassing an arsenal of agile skills.

Which industries are leading the way?

The Banking industry is leading the charge here with a 60% surge in demand for Agile roles like Product Owner, followed closely behind by the Information and Media industry where demand has risen by 52% and a 36% rise in demand in the Insurance sector.

This can be seen as a clear reflection of highly regulated industries showing a significant shift from favouring traditional project management skills and attributes to looking for more agile focused and diverse skill sets as they hope to become more efficient and capable in their future business operations.

Where is this agile talent based?

So, looking across the UK market, are there any hotspots for this Agile talent, and in particular Product Owners?

In a nutshell, yes.

London has a significant chunk boasting 33% of the total talent pool. A huge proportion as this is followed up by Manchester with 5%, then Edinburgh with 4%, Glasgow and Bristol with 3%, and Cardiff having just 2% of the total talent pool.

Changing trends in agile talent location

But while London does have the largest share of this agile talent, is there better hiring opportunity elsewhere in the UK?

We think so!

Other UK hubs, and especially in Scotland, are worth exploring for agile talent thanks to the high competition you’ll face in the capital making hiring extremely costly, not to mention the fight for talent amongst your competitors.

But which hubs in particular?

Data from LinkedIn Talent Insights identifies Northern hotspots such as Edinburgh and Leeds as the strongest opportunity markets for this talent pool.

While London has high demand for agile talent, both Edinburgh and Leeds are currently only experiencing medium to low demand. These cities have also experienced a recent growth in their agile talent populations by at least 4%, whereas our data has shown that growth in London is starting to stagnate. This means lots of candidates for you to choose from and little competition from other companies – good news for businesses wanting to expand their agile capabilities with their pick of the talent!

Combine this with the fact that there’s been an obvious push for growing agile skills across the Scottish digital and tech sectors shown by meet ups like Agile Scotland and Product Tank Edinburgh, we believe that Scotland isn’t just “adopting” agile as a fad, but have fully embraced it for now and the future – a positive sign for hiring for these skills here in 2025 and beyond.

Looking to find out more?

If you’re interested in ramping up the agile skillsets in your team, and want to dive a little deeper into these trends to make sure your offer stands out in the crowd, then why not check out our full Report which is chockers full of market-leading salary data and industry trends. Just fill out the short form below.

If you have any further questions on this topic, want to find out more about agile skillsets and their prevalence in the Scottish market, or are looking for a bit of help in expanding your team then please do get in touch with me on [email protected]

The UK is facing a significant digital skills gap, with implications for economic competitiveness and national security. This gap is particularly acute in sectors requiring high levels of security clearance, such as Government & Defence.

However, could a ‘Skills First’ agenda offer a new approach to workforce development, by focusing on aptitude and potential rather than traditional credentials?

In this blog I explore why the digital skills shortage is a concern, the particular challenges faced by UK government, as well as why a ‘Skills First’ agenda can help.

The Digital Skills Challenge in the UK

The UK is facing a growing digital skills crisis that extends beyond economic productivity, it’s becoming a matter of national security. As digital transformation accelerates, the shortage of skilled professionals in data, cybersecurity, software engineering, and AI is leaving critical industries like Defence vulnerable.

The Strategic Defence Review (SDR) outlines a vision for a digitally enabled force, but without the talent to support it, this vision is at risk. The UK lags behind global leaders in STEM education, and the requirement for UK nationals with security clearance further narrows the talent pool. The clearance process itself, taking up to 52 weeks, creates a bottleneck that reduces agility and responsiveness.

This deficit impacts operational effectiveness. Projects stall, legacy systems persist, and innovation is stifled. The Defence sector struggles to compete with Big Tech for talent, and without a coordinated national strategy, the gap will only widen.

To address this, I believe that digital skills must be treated as critical infrastructure. Investment in education, training, and inclusive hiring practices is essential to reduce the impact on our national security.

What is the ‘Skills First’ Agenda and Why It Matters

The “Skills First” agenda is a transformative approach to workforce development that prioritises capability over credentials. Instead of focusing solely on degrees or past job titles, it emphasises what individuals can do, their aptitude, potential, and transferable skills.

This model is particularly relevant in sectors like Defence and Government, where traditional hiring practices often exclude capable candidates. The “recruit, train, deploy” model and “skills accelerators” offer scalable solutions. They identify talent from diverse backgrounds, provide targeted training, and deploy individuals into roles where they can make an immediate impact. This is a topic I’ve recently discussed on a podcast with WYWM, you can check this out here!

By adopting a skills-first mindset, organisations can tap into underutilised talent pools, including career changers, veterans, and individuals from underrepresented communities. It also supports agility, enabling faster onboarding and adaptability in rapidly evolving digital environments.

The UK has an opportunity to lead in this space. By embedding skills-first principles into procurement, education, and workforce planning, we can build a more inclusive, resilient, and future-ready digital workforce.

SMEs vs. Primes – Who Can Solve the Skills Crisis in Defence?

Both large firms (primes) and small-to-medium enterprises (SMEs) play critical roles in Defence, but they face different challenges when it comes to digital skills.

Primes have the scale, frameworks, and bid teams to win contracts, but they struggle with agility. They can’t afford large benches of unassigned staff, often rely on offshore delivery, and face challenges in rapidly reallocating skilled workers.

SMEs, on the other hand, are nimble and often possess deep technical expertise. But they lack the scale and financial resilience to navigate long procurement cycles. They’re frequently dependent on primes for access to contracts and struggle to invest in skills development at scale.

I believe the solution lies in collaboration. By fostering ecosystems that combine the strengths of both, and by reforming procurement to support innovation and inclusion, the Defence sector can build a more resilient and capable digital workforce.

Skills development must be a shared responsibility, embedded in contracts and supported by government policy.

Making Defence Tech Cool – Attracting the Next Generation

Defence faces unique challenges: long procurement cycles, legacy systems, and an ageing workforce. The Strategic Defence Review outlines ambitious digital goals, but without the right talent, these are at risk. The sector must address cultural and structural barriers to attract and retain digital professionals.

To compete with Big Tech for digital talent, the Defence sector must transform its image. While Defence offers purpose-driven work and cutting-edge technology, it often fails to communicate this effectively to younger generations.

Branding matters. Big Tech is seen as innovative, flexible, and exciting. Defence must adopt similar messaging, highlighting its mission, impact, and opportunities for growth. Outreach programs targeting schools, universities, and underrepresented communities are essential.

Initiatives like STEM engagement, early careers programs, and partnerships with tech hubs can help build awareness and interest. Showcasing real-world applications of Defence tech like AI, cyber, autonomous systems, can inspire the next generation.

Making Defence tech “cool” isn’t about gimmicks. It’s about telling a compelling story, creating inclusive pathways, and offering meaningful careers.

Central Government and the Skills First Opportunity

But the digital skills challenge isn’t limited to Defence. Central Government departments face similar issues like rigid hiring practices, pay disparities, and a lack of digital fluency.

The civil service often struggles to compete with the private sector for talent. Roles are narrowly defined, and hiring processes are slow. This limits the ability to respond to emerging challenges and deliver digital transformation.

A “Skills First” approach can help here as well. By focusing on aptitude and potential, government departments can access a broader talent pool. Training programs, secondments, and cross-sector partnerships can accelerate capability building.

The Government Digital Service (GDS) has made progress, but I think more is needed. A unified strategy that aligns Defence and Civil Service efforts can create shared talent pipelines and improve interoperability.

Digital transformation in government isn’t just about technology, it’s about people. Embracing skills-first principles is key to building a modern, responsive, and inclusive public sector.

Conclusion

The digital skills crisis really is a strategic risk for the UK. To address this crisis the UK Government & Defence sector needs a coordinated, long-term strategy with collaboration between government, industry, and education.

But by adopting a ‘Skills First’ approach and investing in inclusive, long-term solutions, I believe the UK can build a resilient digital workforce capable of leading our industry through this transformation and that supports both national security and the public service.

The time to act is now.

Would you like to discuss this more? I’m always keen to chat with anyone who has queries on the digital skills gap or how they can ensure their organisation can use talent to remain resilient against these challenges. So please do reach out on [email protected]

Sanderson Government & Defence‘s Managing Director Nick Walrond recently had the pleasure of joining WithYouWithMe on a podcast exploring why in today’s fast-moving economy, it’s not who has the biggest brand or the deepest pockets that wins — it’s who can mobilise the right skills, at the right time, to drive real outcomes – and how a skills-based RTD (Recruit Train Deploy) Model can help make this happen.

Nick chats about how in the government and defence sector specifically, a technical skills accelerator is vital to help organisations build their capability faster, increase speed to proficiency, and de-risk workforce decisions.

When needing a security clearance significantly reduces the availability of skilled talent, government clients can benefit from the principals of an RTD model by accessing talent that has the technical understanding required, but also with the potential to accelerate this – unlocking hidden potential to help them reach their goals.

Nick also dives into why looking at skills-based hiring over qualifications and experience can create a powerful advantage for businesses, and even help to remove unconscious bias from their recruitment processes. A subject that’s particularly important as we need to find a way to engage with people of all ages and at all differing stages of careers as our working population ages and so getting more people into organisations to build capability faster should be celebrated.

If you’re looking to future-proof your team then have a listen to the full podcast via the link below and make skills your greatest competitive edge!

https://open.spotify.com/episode/5gDxTuTJ5fG7oqQXEifS14

We recently launched our Product Owner Spotlight Report which took a deep-dive into the world of Product Owners to provide you with insight into everything from candidate location through to salary data.

But when it comes to career progression and benefits, what is it exactly that really makes this candidate pool tick?

In this blog we’ll walk you through the necessary skills you should look for in a Product Owner, the typical career path these candidates take as well as the work styles this talent pool utilises so you can make sure your offer remains competitive in the market.

Let’s get tucked in…

What skills should Product Owners have?

For candidates to succeed in the Product Owner role (and to stand out in the market), they need to be pragmatic, possess strong communication skills and ideally be well versed in agile methodologies and prioritisation techniques. They may also have obtained relevant certifications such as CSPO and PSPO.

This is important because the fundamental aspect of Product Ownership is being the conduit between business units and teams. Whether that is between UX and Software engineering or business stakeholders and technology functions, they are the central point of engagement. These are candidates who have chosen to move from development teams to Product Ownership and so will often have excellent soft skills and enjoy stakeholder management responsibilities.

What does a career path look like for a Product Owner?

So, what does a typical Product Owner career path look like?

Generally speaking, there seems to be two core starting points for a Product Owner to take the first steps in their career:

• Business Analyst
• Software Development

As they gain experience, they often undertake increased strategic responsibility and can evolve into a Senior Product Owner role, this typical means working more closely with senior stakeholders or owning multiple products.

In our experience, it’s at this point that many candidates want to continue to progress up the ladder, and so we begin to see them move into Product Management roles and Senior Product Management roles which have far broader scope and allows the candidate to be more strategic in nature. In these roles there will be more of focus on shaping and influencing the Product roadmap but also what that means for the wider business as well as technical or product strategies.

After this, the career path can evolve, but we find the job title can be subjective to the scale and size of the organisation, product or software engineering teams and the business teams in the organisation.

But is the opportunity to widen their scope of work and skill sets all that’s important to these candidates?

How to make your offer stand out

In our experience, while opportunities to work on exciting projects or products and getting stuck into cutting-edge tech stacks are still important to candidates, now more than ever we’re seeing these candidates care more about the nature of the work they’re doing, and the type of company they’re working for.

We’ve seen high-quality professionals prioritising important social or ethically impactful Products within domains such HealthTech, FinTech, MedTech and even tending to shy away from potentially controversial industries like gambling or tobacco.

It’s also interesting to note the working style Product Owners are tending to favour. According to our data from 400+ job boards in this market, we’re seeing 6.8% of these roles advertised as fully remote, 26.8% as hybrid and 66.4% as fully in the office. From conversations with candidates and clients alike, there seems to be a real preference towards Hybrid approach.

In our experience, almost all of the high-quality Product specialists we’ve placed in the last 18 months from junior to CPO level, have a preference for some time on site. Due to the sheer nature of the role, they are the middle person between various people and teams. These sought after candidates find they can perform their role better with some face time and a human touch, so make sure that’s an option for them.

Looking to find out more?

If you want to tap into the Product Owner, we’d love to hear from you. Our data is showing a 2% nationwide increase in Product Owner headcount PLUS Sanderson hiring volume for this role has gone up by a whopping 50%, so now is more important than ever to get a solid grasp on this market so you’re ready to make your next move.

Please do reach out to Khalid Razouki on [email protected] to carry on the conversation, and why not dive a little deeper into the Product Owner market by downloading a copy of the full report in the short form below.