Why IT contractors are (understandably) fed up with recruitment agencies

After nearly 30 years in the IT recruitment sector, I'm still as passionate as I was back in the 90s.

However, the problem as 2025 comes to a close is that too many recruitment agencies simply are not doing it properly. They're letting the side down and understandably causing mistrust between contractors and clients, leading to the entire industry being marked with their stain.

Time for a new narrative

Personally, many frustrations have built up for me over the years. We need to raise the bar.

And I didn't intend to end this year on a potential downer, especially following my already warts-and-all account of IT contracting. But in 2026, the temporary staffing sector really must acknowledge that the 'them' versus 'us' — recruiters versus contractors — narrative must end, because it doesn't work, writes tech recruitment agency VIQU IT's Matt Collingwood.

Agencies everywhere, quality nowhere…

The UK is a global leader in services. With 40,000 recruitment agencies registered at Companies House and almost zero regulation (other than the Conduct Regulations, which I'm increasingly finding that the average recruiter has never heard of), anyone with a phone, a laptop, and a LinkedIn account can call themselves a recruiter.

The result is an industry driven by sales commissions, maverick behaviour, and short-term thinking rather than what's actually best for contractors or clients.

It doesn't have to be like this…

Unlike other countries, where agency recruiters often come through HR, UK agency recruiters are primarily salespeople. That sales-led mindset drives productivity, but also compromises fairness.

Contractors don't pay a penny for the service received by recruiters, and clients only pay on delivery, so the pressure to chase placements rather than do the right thing is enormous.

We could fix this. Treat recruiters like solicitors. We should pay recruiters for the work they do, not just the candidate(s) they place.

Yet in an industry this competitive, change is easier said than done. What's clear is that the way we do things now is unsustainable, and until we address it, the blame lies squarely with the system and recruitment agency owners.

The brink of collapse

The state of the UK recruitment industry on the cusp of 2026 is worrying. Economic pressures and basic supply and demand have combined to create a perfect storm.

Global staffing players such as Hays, Randstad, and Michael Page issued profit warnings in early 2025. As an example, Hays Plc's 2024 operating profits dropped from £105.1m (2024) to £45.6m in 2025.

Many small and medium-sized recruitment agencies went into administration or ceased trading altogether in 2025.

Why too many IT contractor recruitment agencies fail

I have seen it first-hand. Too often, these staffing company failures are caused by:

• Poor management,
• Over-leveraging, and
• Legacy CBILs.

An agency collapse is devastating not just for staff, but also for contractors who often face unpaid invoices and 'bad debt' through their personal service companies.

My forecast for 2026 is that, unfortunately, more recruitment agencies will struggle and go to the wall.

Three must-dos in 2026 before signing an agency's dotted line

Contractors must be vigilant next year.

Before committing to an agency, contractors must:

1. Credit check the business.
2. Review their accounts online.
3. Examine the conduct of the directors. Have they previously run a company into administration only to relaunch it under the same name ('phoenixism')?

Here's a red flag

If in doubt about an agency's staying power, contractors should ask to see the agency's management accounts, and they should reduce their payment terms from the standard 28 days to 14 days (or less).

As an agency owner, I have always been happy to disclose management accounts to contractors if there are concerns. If a recruitment agency is not doing the same, consider it a 'red flag.'

The CV black hole

Pretty much every contractor has experienced seeing a role advertised, sending off their CV and hearing nothing back.

It is rude, demotivating, and frankly, a massive waste of time.

There are endless comments on LinkedIn about recruiters posting 'fake jobs.'

But first, let's be clear. Yes, there are some fake jobs, but there are far fewer non-existent roles than people often think. Remember, job boards are very expensive to advertise on right now, and no self-respecting recruiter is going to waste that money.

The challenge in the current UK hiring market is not finding IT contractors; it is identifying clients who actually want to hire and dealing with the tsunami of CVs from people each time agencies do have a role.

CV overwhelm for agencies is a real issue

The reality of CV volumes is a real problem for recruiters.

Here's an IT contractor job advert that would generate the tsunami:

• Role: Project Manager.
• Status: Outside IR35.
• When: Flexible working 2 days a week.
• Duration: Long-term contract
• Pay: Competitive-good rate.

Advertise this PM role today, and a recruiter would receive 1,500 CVs — in a single week.

Such CV volume is completely unmanageable. If I were to call every individual, qualify them, and assess their suitability in detail, I've calculated that it would take me four-and-a-half months!

Sadly, no recruitment agency has the resources to telephone that many applicants and fully assess them within a week. It would require 16 additional recruiters for every one recruiter currently employed.

A broken system

From their side, contractors want calls, contact and feedback. Recruiters just want to place contractors in the roles they've got.

But the system is broken when the sheer volume of unsuitable CVs outweighs the reality of resources.

Until contractors understand that — don't expect a call back.

And that is the uncomfortable, yet sad reality.

Is there any point (any more) in IT contractors emailing a CV?

Recruitment agencies are increasingly using AI tools to sift through the hundreds and hundreds of CVs they receive for each role.

AI ranks contractors based on the job spec and the information fed into it. That means the system is blind to experience that does not exactly match the spec.

So how do contractors compete?

A lot of technology workers seeking temporary roles just send their old CV; the one they have been updating for years.

It's not rare that we see IT contractor CVs that are 22 pages in length.

Despite that implied vat of experience, the AI may not rank such a candidate anywhere near the top, and your chances plummet if the document is missing 'Key Skills' required.

How best to apply for a contract tech job in 2026

Smart contractors are the ones who take the advert, and tailor their CV to match the job spec. That way, the agency's AI tool sees a 'match' between a CV and the role.

I completely understand the frustration contractors feel when they are ignored. I get it. But equally, contractors need to understand the impossible situation recruiters face daily.

The obvious way for contractors to stand out in 2026, and where I've seen the most success in 2025, comes from networking.

Some IT contractors are brilliant at networking. They do not rely on recruitment agencies. They keep in touch with old colleagues, line managers, and contacts across their sector, as well as keeping regular contact with recruiters who specialise in their area.

Repeat business

In my recruitment agency, we have contractors who are on their fourth or fifth assignment through us across different clients. Why do we look after them? Because they are excellent ambassadors. They understand the benefits that a switched-on IT recruiter can provide, and in turn, we make sure they're fully supported.

In 2025, the contractors who've succeeded in the technology jobs market used both networking and recruiters strategically, rather than expecting everything to be handed to them.

The victors of 2026 will invariably do the same.

IR35 ignorance is costly

I interview a lot of experienced contract recruiters.

One of the first things I ask them is to talk me through the basics.

• Explain to me when to use a KID (Key Information Document)
• What is an SDS (Status Determination Statement)?
• How do the off-payroll working regulations of 2017/21 differ to IR35 of 2000?

It's staggering how many interviewees cannot give what I would consider an acceptable answer.

So what does this compliance 'knowledge gap' mean for contractors?

Many recruitment agencies aren't IR35 educators

To fully answer that question, keep in mind that since IR35 reform on April 6th 2017 and April 6th 2021, clients have become risk-averse.

To address that risk aversion, the simple fix is for recruiters to educate clients on the alternatives. There is no excuse these days for clients not to engage off-payroll PSC/limited company contractors if they want to.

But it baffles me that recruiters are not out there educating clients or talking to them about the benefits of correctly determined outside IR35 engagements.

The blame for this IR35 education-compliance vacuum sits squarely with recruitment company owners, directors and managers, rather than with agents 'on the ground.'

An IR35 course for agents should be mandatory

If I could wave a magic wand, I would mandate that all contract recruiters undertake a course on IR35.

It would benefit the entire supply chain massively.

Simply accepting that a role is on-payroll is unacceptable in my world, and it is costing contractors money, opportunities, and flexibility.

Here's to 2026…

At this stage, and maybe it's that festive feeling talking here, but I feel I owe an apology to contractors who've had a rough ride with recruitment agencies.

But let's keep it in proportion. Most recruiters are not looking to deliberately screw over contractors. After all, recruitment agencies need contractors. Without them, the whole UK recruitment market collapses.

Yes, recruitment has its flaws, some big ones. And yes, the staffing game does need to change in 2026, especially the temporary IT channel. Better business practices, proper compliance, actual training, and a more collaborative approach with contractors are all critical. Until then, contractors need to weather the storm and protect their own interests.