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Which Managed Service Programme (MSP) is right for me?

Posted April 2, 2025

If you’re in the market for a more standardised, compliant and cost-efficient approach to the sourcing, onboarding and managing of your contractor population, you might be thinking of engaging with a partner for an MSP (Managed Service Programme).

However, one size does not fit all and there are different approaches and models to consider, all of which we discussed in our recent Guide. Whilst all MSPs bring a dedicated account team to drive efficient processes across the different stages of managing contingent workforces, from attraction, selection, onboarding, pre-engagement screening, and then offboarding, the major difference is the approach to candidate sourcing.

In this blog, we run through the different models and how they might benefit your organisation so that you can decide which one is right for you.

Let’s get stuck in…

Master Vendor MSP

Master Vendor is an MSP solution in which one MSP partner takes responsibility for the management of the end-to-end process and the sourcing of candidates themselves. They build a second-tier supply chain but only utilise it if they require additional help.

A Master Vendor MSP partner acts as the primary resourcing provider for your organisation. The partner will take direct responsibility for candidate sourcing, pre-screening and management, as well as building talent pipelines for future vacancies. They will only engage with other agencies if they cannot fulfil the role and need a bit of extra help. Basically, they’ll completely take the resourcing challenges and time-consuming admin tasks off your hands.

Advantages

This model offers a more streamlined process as one partner takes responsibility for all activity. Not only does this bring more accountability for hiring difficult to fill roles but will often result in quicker placements and a creation of talent pipelines for future roles, driving down your future time to hire.

Master Vendor MSP enables you to leverage economies of scale to realise significant cost savings through a simple pricing structure. A Master Vendor MSP also creates consistency of experience. The candidate experience will be more consistent as they are only dealing with one point of contact, and it will also help to improve the amplification of your employer brand messaging.

Challenges

When looking to engage with a master vendor MSP provider, selecting the right partner is key.

If you operate in a particularly niche market or are needing to flesh out your team for a very technical project, then be aware that some suppliers might not have the direct sourcing capability to provide access to the niche talent or specialised skills you require. It pays to do your research. A specialist master vend partner will be able to demonstrate the ability to source at least 90% of all roles directly.

This is particularly relevant if you’re needing to recruit over multiple locations, or even regions, it should also be noted that with a master vendor approach, it may be difficult to deploy workers consistently across a multi-region solution.

Neutral Vendor MSP

Next up, you’ve got your neutral vendor MSP model. When you’re working with an MSP partner in a neutral vendor capacity, this mean they will be acting as an intermediary between your company and the roles you need filling, and multiple other recruitment agencies. Think of them as being able to play the field for you.

They’ll review candidates from all these different sources and present the best options to you, regardless of source.

Advantages

The neutral vendor approach will spread out your risk and diversify your talent supply chains, which can then provide you with wider and more diverse access to talent.

You could also maximise some cost savings thanks to the transparency of this approach and being able to review the pricing structures of multiple different suppliers. A diverse supply chain builds scalability and flexibility into a solution.

Challenges

However, a neutral vendor approach may not achieve the same cost savings as a direct sourcing model as there will be two organisations to pay for each hire made, the agency supplier as well as the MSP partner.

Also, you should pay special attention to how each agency is presenting your employer brand to avoid a misalignment in how you’re being represented.

Hybrid Model MSP

Then you’ve got your hybrid model MSP partner. This combines some elements of both the vendor-neutral and the master vendor approaches.

With a hybrid model, the MSP partner may deliver to you via direct sourcing, while also appointing other primary suppliers and opening some of your roles up to a wider pool in the supply chain.

Advantages

A huge advantage you get with the hybrid model is flexibility as you’ll be able to choose the best model per job category. This could mean that your technology hiring is conducted via a neutral vendor approach, while your HR function is handled through a master vendor. This will optimise costs and efficiency while maintaining access to diverse suppliers.

This approach also means you’re not going to be limited by jurisdictions. You can easily hire across various geographical locations and get the best talent on the ground thanks to the expertise of different suppliers based where you need them – say goodbye to compromising on worker quality.

Challenges

However, a hybrid model approach does come with its own set of potential challenges. When you’re working with different MSP models operating for different job categories it can become a hugely complex process to manage. The hybrid model can work very effectively for large, multi-region contracts, mitigating risk and ensuring compliance with local regulations. For mid-size solutions (100 – 750 contractors under management) it may prove overly complex and not deliver the same benefits as the other models.

Which model is right for you?

So, which model do you think is right for you?

Well, it depends. The most appropriate model will depend on factors like your organisation’s size, industry sector, geographic scope, the mix between generalist and niche skills that you’re hiring for, not to mention your strategic goals.

Looking for more information?

We’re on hand to help guide you on which MSP model might be right for you and your business, and how you can get started.

You can find out more in our comprehensive Guide to MSP. Answering all of your questions from what the benefits are through to how to get started, this Guide will set you up for success.

If you have any further questions or would like to chat to us more, please don’t hesitate to reach out to:

Chesney Windsor – [email protected]

Or

Lisa Goodman – [email protected]

 

Download our Ultimate Guide to MSP here

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What’s new in Government & Defence recruitment: Our thoughts on the market

Posted March 24, 2025

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]

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What’s Happening with Financial Services Recruitment in London?

Posted March 20, 2025

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]

Download the full Financial Services Hiring Trends Annual Report here

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Annual Report: Financial Services Hiring Trends

Posted March 12, 2025

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]

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What is an MSP (Managed Service Programme) Anyway?

Posted February 17, 2025

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]

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Ready. Steady. Lead? The Journey from Technical Expert to Leader

Posted August 19, 2024

Let’s face it, people aren’t born into leadership roles.

It’s a jump to be a leader of people and in many industries or functions where technical activities play a prominent role, individuals with high technical expertise and capability more than likely started out in their roles due to their personal interest and passion in the subject matter. They enjoyed the technical challenge and activity but being able to do something at a high level, doesn’t necessarily mean you can inspire others to do the same. Leading people to be successful is a wholly different focus requiring people to cultivate new skills and be open to stepping outside of their comfort zone.

Emerging leaders often also need significant support from their organisation to develop the right leadership competencies and confidence. So, what are some of the ways that your business can support new leaders as they step up in your organisation?

Here I’ll lay out some of the strategies I’ve seen implemented as well as steps Sanderson take when installing a new leader into a company.

Strategies to help your new leaders make an impact  

Organisations should be providing the right environment, time and support to help leaders to succeed, learn and to develop the skills they need to be great. With the right supports in place, can anyone be a leader if they are genuinely open to learning new skills and get the right help to get there? I’d like to think so.

Some of the strategies you could employ to help your new leaders thrive are:

Setting the scene with behavioural assessments

Before you do anything, it’s important to gain an understanding of the individuals current experience and capabilities, including any past exposure to leadership responsibilities. Conducting 360 review processes can be useful here.

Using behavioural assessment methodology and psychometric testing such as Cognisess can help to analyse an individual’s behaviours to understand their strength, and development areas to tailor support to them as an individual as they move into their new leadership role.

Allow them to fail and learn

Organisations should consider proactively supporting the individual and their team to develop and grow. It’s not just about ticking a box when making a new leadership hire or promoting someone, but also actively providing a runway of support, time and guidance to ensure their success.

You want to prioritise an honest and non-judgemental culture of building a new leader’s confidence, letting them ask questions, test their ideas and give them the space to fail and learn with the headspace they need to build on their leadership skills instead of still being bogged down in the day-to-day operations.

Alongside this, a culture of collaboration and team building can help foster knowledge sharing and build employee confidence and strong collegiate relationships.

Every day is a learning opportunity

Training programmes can complement a new leader’s development by providing access to new ideas and broader perspectives.

Companies should provide emerging leaders the time and space to actively engage in training rather than worrying about it taking away from their day job. Implementing robust leadership development programmes can be a crucial step to close the skills gap and foster strong leaders in any organisation.

Help from a friend

Implementing mentorship programmes can be a great strategy to close the skills gap between technically excellent employees and new leaders.

Giving individuals the opportunity to ask questions from current leaders who have walked a similar path, can be hugely beneficial. It is always easier to leap the hurdle if you see it coming!

Find their own style

Emerging leaders should be encouraged and supported in finding a leadership style that works for them, and nowadays we are tending to see more empathetic styles of leadership. Gone are the days where a more controlling style of leading is supported by a business just because that might have been how that new leader was treated when they were first starting out in the workplace. If a new leader has recently moved into the position, we should allow them to maintain a similar level of empathy and interest in their colleagues’ lives, feelings and workloads, and let them lean into a style of leadership which still leaves their team feeling supported and respected.

How Sanderson approaches appointing a new leader

At Sanderson Executive, we focus on assessing four key considerations when sourcing candidates for a leadership appointment. These ensure the best possible fit for the business, provide a platform for the individual’s success and therefore the best long-term outcome for the businesses we support.

We kick things off by reviewing:

Objective fit

We ensure a credible technical fit, assessing an individual’s skillset, experience and successes.

Subjective fit

We explore the candidate’s approach and cultural priorities, their leadership experience and interest, along with their ability to operate strategically.

Motivation

We’ll consider their personal motivations and whether the position genuinely fulfils these desires and both now and int he future.

Practicalities

Lastly, we carefully consider any practicalities that might impact their ability to take on the position along with their appetite to mitigate any of them.

Next steps

Do candidates need to be a perfect fit across all four of these areas?

Absolutely not! Often a balance of strengths and considerations exist for all and it’s important to understand this picture to make the right long-term appointments and shape the individual’s runway for success on joining.

If you’re looking to appointment into your leadership team, let us go the extra mile and help secure your future leader. Get in touch today to discuss your talent challenges.

 

Would you like to hear more from Sanderson and learn about the work we do? You can sign up to join our mailing list here for a variety of updates, access to our market leading salary benchmarking data, white papers, reports and blogs PLUS our latest news and event invites.

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Effective Resourcing Models in Talent Acquisition: The Flexibility You Need

Posted August 12, 2024

At a recent roundtable dinner in London, hosted by HR World and Sanderson Government and Defence a group of HR professionals gathered to discuss the current hot topics in talent acquisition. One prominent theme was the diverse range of resourcing models currently employed within the sector. The discussion covered what these models are, their implications for businesses, and how they can incorporate inclusive approaches to talent selection.

In this article, Nick Walrond, Managing Director of Sanderson Government and Defence, shares insights on the models discussed and provides a detailed overview of the various resourcing models available in talent acquisition today.

Talent Acquisition Resourcing Models

In recent years, companies have sought more efficient ways to access the talent they need, leading many to diversify their offerings to create more effective and tailored services. This evolution has resulted in three broad categories of resourcing models:

  1. Inhouse – Talent acquisition services are managed entirely by an internal team.
  2. Outsourcing – Talent acquisition is outsourced to a third party, either operated offsite and off-brand or through a white-labelled team utilising your brand.
  3. Hybrid – A mix-and-match approach where both internal and external service providers operate alongside each other to meet talent needs.

Let’s explore each of these models in more detail.

The Inhouse Model

An Inhouse model involves setting up internal systems and processes to efficiently handle candidate processing and comply with GDPR requirements for managing personal data. This model necessitates hiring skilled talent acquisition experts and implementing an Applicant Tracking System (ATS), at a minimum.

Advantages:

  • The talent acquisition team is fully embedded within the company culture and values, ensuring they understand the organisation’s strategic objectives.
  • Enhanced relationships with the talent acquisition team allow for better retention of business information and strong working relationships, leading to the identification of the best candidates.
  • Direct engagement with the community being hired for provides a seamless recruitment service.
  • Maintains the employer brand throughout the process, making candidates feel connected to the organisation from the start.
  • Ownership of candidate data enables proactive engagement with talent pools, particularly beneficial for niche or scarce skills.

Challenges:

  • Resource and cost-intensive, often requiring augmentation by external niche and specialist providers.
  • Navigating the myriad candidate sourcing routes available can be complex and costly.
  • Scaling the inhouse model is challenging, especially during sudden demand surges or natural attrition of talent acquisition experts.

The Outsourcing Model

In the Outsourcing model, recruitment services are managed entirely outside the organisation. The outsourcer handles everything from vacancy approval to onboarding and retention strategies, using their own systems and platforms. This model can operate under the outsourcer’s brand or utilise the client’s brand.

Advantages:

  • Flexible pricing model ensures you only pay for the services you use.
  • Extended reach to multiple candidate attraction tools and techniques.
  • Can provide cost-effective solutions without the need for significant internal investment in people, processes, and systems.

Considerations:

  • Deciding whether an externally branded or inhouse branded approach works best.
  • Determining ownership of data associated with candidate attraction capability.

The Hybrid Model

The Hybrid model combines elements from both the inhouse and outsourcing models, offering flexibility to invest in an inhouse team while leveraging external partners when needed.

Advantages:

  • Flexibility to scale up or down based on demand and support niche roles requiring different approaches.
  • Customisable processes to meet business needs with the best resourcing model for each recruitment requirement.
  • Potential for a strong partnership with external suppliers, viewed as an extension of the internal talent acquisition team.

Challenges:

  • Increased complexity due to the need to bridge the gap between internal teams and multiple external vendors.
  • Requires substantial communication and coordination to ensure seamless operation.

Conclusion

The variety of resourcing models in talent acquisition provides organisations with the flexibility to reach a more diverse talent pool and appeal to a wider range of candidates. The best solution for each organisation depends on its specific talent and business requirements, and the chosen method should align with the business’s strategic objectives moving forward.

Ultimately, successful talent acquisition hinges on selecting a model that suits all parties and fosters an inclusive approach to sourcing and hiring the best talent.

 

Do you have any follow up questions regarding these recruitment models? Or have found yourself wondering which might be the best option for your business?

Then please don’t hesitate to get in touch so we can chat more about your recruitment needs and the bespoke solutions myself and the Sanderson team could provide you in your recruitment processes.

 

Would you like to hear more from Sanderson and learn about the work we do? You can sign up to join our mailing list here for a variety of updates, access to our market leading salary benchmarking data, white papers, reports and blogs PLUS our latest news and event invites.

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Engagement & Retention of Early Careers Talent: New White Paper

Posted July 11, 2024

There is no question that hybrid and remote working is here to stay but does it create unintended challenges for those entering the workforce for the first time or those early careers roles that require on the job training and support?

Mark Beale, Director of Delivery and Engagement at Sanderson notes ‘The emphasis of our RPO solutions into the financial services sector has evolved over the past 18 months from the ability to deliver high volumes of hires to meet the post-covid surge in demand, to partnering with our clients to deliver strategies that help them retain and develop their early careers talent, creating sustainable succession pipelines for senior and specialist roles.’

A question recently posed to us was, ‘how do we provide a better employee experience so that we can engage and retain more of our early careers talent, particularly with the increase in hybrid and remote working practices?

To get a deeper understanding of these challenges, Sanderson partnered with a variety of Banks, Building Societies, Insurance, Wealth & Investment companies to understand their approach to this challenge and we have shared our findings in a comprehensive and downloadable report.

Download your copy today via this link.

If you would like to discuss any of the issues discussed in this paper, or have any questions on your own early careers candidates, please don’t hesitate to get in touch.

 

Would you like to hear more from Sanderson and learn about the work we do? You can sign up to join our mailing list here for a variety of updates, access to our market leading salary benchmarking data, white papers, reports and blogs PLUS our latest news and event invites.

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The Growth of Manchester as a Talent Hotspot

Posted June 6, 2024

In one of our recent Talent Insights Reports, we highlighted the trend that a number of global businesses had opted to relocate their business services teams to the North, and specifically Manchester, as a step towards lowering the cost of hire, whilst maintaining a high calibre workforce, meaning Manchester is growing as a talent hotspot.

In this article, we look more closely at these trends UK wide and across a wider spectrum of skill sets, whilst looking at where some of these decisions originate from.

The rise of ‘near shoring’

“North shoring” is a term that really became popular in the early 2000s, in 2004 the BBC announced plans to move out of London with the current Salford Quays site being announced in 2006 – this then fuelled the growth of Media City.

We’ve since had the phenomenon of “near shoring”, with businesses choosing places such as Manchester, Bristol and Leeds to base their business support operations away from the prime locations of London.

Moves to the Northern Powerhouse

New entrants to the UK market are starting to pit the likes of London, Bristol, Birmingham and Manchester against each other to balance the quality of available candidates, cost of hire, cost of offices and quality of life. Whilst many are still laser focused on London as the only viable location to set up shop, Manchester is often coming out on top.

These trends are backed up by the “quality of life” stats provided by Numbeo, with London and Manchester achieving similar scores and both locations appealing with regards to purchasing power, healthcare availability and, perhaps surprisingly, property price to income ratio (www.numbeo.com, May 2024).

There has also been a real push in a focus on investment for businesses based outside of London, with some specifically set up to focus on investing in companies in the North of England. This is also backed by the recently launched Northern Powerhouse Investment Fund II.

 

Our research has shown (as per the table above) that there are a large amount of people who are leaving the capital and moving to other cities, with Manchester being the most popular.  Interestingly the amount of people heading to Manchester is almost double that of Bristol, home to the second highest number of professionals leaving London. A clear indication that Manchester is becoming a hot spot for talent.

The appeal of Manchester for candidates and companies

We spoke to Deborah Walker, Head of Inward Investment for Financial, Professional and Business Services at MIDAS for her take on why Manchester and the surrounding areas in the North are becoming so appealing. She commented that:

“Greater Manchester continues to be a magnet for global firms looking to consolidate corporate or shared services or scale operations, particularly when access to qualified professionals, technology or cyber skills are a prerequisite.  These businesses want to be sure that as well as choosing a location which makes good sense economically, their workforce will be happy, so Manchester’s investment in talent is especially appealing.  We’re seeing almost 50% of its diverse, young and multi-lingual graduates – for whom lifestyle is just as important – choosing to stay here beyond their studies. Manchester is a creative and collaborative city and new investors quickly discover that here is where they can enhance the customer experience through leveraging skills and talent from the creative industries that surround them.”

Commenting on the rise of companies moving to Manchester to open offices along with the rise in competitiveness and desirability in Manchester office space, Joe Averill, Managing Director and Founder of Level, a company that provides bespoke workspace solutions for tenants across various sectors and size, noted:

There is a “flight to quality” in Manchester’s office market right now (an increasing trend in real estate whereby businesses are willing to pay higher prices for premium spaces) as businesses look to select office spaces with higher levels of amenity and flexibility. We’re seeing this happening across start-up’s/SME’s, scales ups and enterprise clients. Due to demand, there is over 200,000sq ft of new flexible workspace launching in Manchester between now and the end of 2025. Businesses here are adopting more hybrid and flexible working models, and so want spaces where they can connect with others in a community, receive a high level of service, take the hassle out of moving offices, work in diverse and collaborative ways and operate in a building that offers high levels of amenity for their people.”

Talent Growth in the North

Data from LinkedIn Talent Insights shows us that there has been growth and migration across multiple industries for Manchester, with many of these candidates coming from London.

This table shows the increase/decrease in the number of professionals within each of the key markets over the past 12 months between London and Manchester.

Here we can see that there has been significant growth within Cyber Security, Data and Cloud & Infrastructure, with many of these candidates are now based in or working from the North.

Conclusion

In conclusion, it is clear to see that many talented individuals across multiple professional sectors are relocating to the North from London, with a specific focus on Manchester and its surrounding boroughs as a place to work.

The increase in available investment, office space and out of work activities in the area makes it a desirable location for companies and candidates alike, and I expect to see these trends persist and the continuation of the rise of Manchester as a talent hot spot.

As the Regional Director for the North at Sanderson, I am passionate about Manchester and the surrounding areas as offering viable opportunities for many businesses.

Could Manchester be the place for you to set up your next regional office? If you would like to discuss talent opportunities in the North for you and your business, please do reach out to me at [email protected].

 

Would you like to hear more from Sanderson and learn about the work we do? You can sign up to join our mailing list here for a variety of updates, access to our market leading salary benchmarking data, white papers, reports and blogs PLUS our latest news and event invites.