The Recruiters View: Northern interim payroll market – changing contracts, shifting expectations

With Payroll LIVE just around the corner in Manchester, it feels like the perfect time to reflect on what’s happening across the Northern payroll market – particularly in the world of interim and contract roles.

Since joining Portfolio Payroll in 2022, I’ve specialised in placing temporary and fixed-term payroll professionals across the North of England. It’s a fast-paced market that’s constantly shifting, and right now, there’s plenty for candidates to think about.

Contract Roles Are Changing – and So Are Expectations

When people think of interim payroll jobs, they often picture short-term maternity covers or quick project support. That still happens, of course, but there’s been a noticeable change. More employers are using temporary hiring as a longer-term solution – bringing people in on a contract basis first, then offering them a permanent role once they know it’s the right fit.

From a candidate perspective, this can be a great way to get a foot in the door without committing to something straight away. It also allows for a bit more flexibility while still having a clear route to progression.

One thing that has definitely changed is the level of experience clients expect. Even if the role doesn’t involve full end-to-end payroll, many employers are asking for it anyway. With rising costs and tighter budgets, they want to make sure they’re getting the most value out of every hire.

Candidates Are in Demand – But So Is Flexibility

Right now, there are a lot of strong candidates on the market, particularly contractors who are open to a wider range of roles. Some have taken on more junior positions just to stay active, while others are branching into new areas of payroll altogether.

I’m also seeing more people trying to break into the industry. Whether it’s through reskilling or moving from other parts of finance or HR, there’s a steady stream of new talent coming through.

That said, flexibility remains a big talking point. Many professionals are happy to be in the office a few days a week, but a lot still want hybrid working as standard. It’s often a dealbreaker – especially when candidates have multiple offers on the table.

What’s Hot Right Now?

There’s been a real increase in demand for interim Payroll Managers, particularly across the North West. At the same time, payroll bureaus – especially in Yorkshire – are building out their teams and offering more permanent roles.

System experience is always valuable, but employers who are too rigid about specific platforms risk missing out. If someone has worked across multiple systems and industries, they’re usually more than capable of picking up something new quickly.

For interim professionals, variety is often the key to progression. By moving between different contracts, you can pick up new systems, explore global payroll, or get involved in implementation projects – all of which can fast-track your development.

Salary Trends and Market Challenges

In terms of pay, we’ve seen salaries rise in line with inflation and the NI increase for roles like Payroll Administrators and Officers. Payroll Manager and Project Manager roles, though, have plateaued a bit, which is something employers need to be mindful of.

A few common issues are still catching clients out – things like slow hiring processes, inflexible packages, or underpaying for senior contractors. In a competitive market, those things can make all the difference.

If you’re hiring, my advice would be simple: be realistic, move quickly, and keep an open mind. Sometimes the perfect candidate doesn’t tick every single box, but with the right support, they can be exactly what your team needs.

Looking Ahead

As we head into the second half of the year, I expect to see more businesses continuing to automate their payroll systems and review how they resource their teams. We’ll also see more movement around international payroll, particularly with outsourcing on the rise.

IR35 is still causing confusion, and we’re seeing fewer outside-IR35 contracts in the North compared to the South. That’s forcing some senior contractors to rethink their options, with many now open to PAYE roles or temp-to-perm setups.

And of course, the rising cost of employment – especially with the NI changes – means more businesses are cautious about hiring permanently without trying someone out first. It’s a trend that looks set to continue.

Let’s Chat at Payroll LIVE

The team will be at Payroll LIVE in Manchester and would love to speak with anyone who’s looking for their next role, considering contracting for the first time, or just wants to understand what the market looks like right now.

Whether you’re starting out in payroll or you’re a senior contractor looking for your next opportunity, I’d be happy to share what I’m seeing and help you plan your next move.

About Lily Gibbons, Senior Recruitment Consultant, Portfolio Payroll

Based in Manchester, Lily Gibbons is a Senior Recruitment Consultant at Portfolio Payroll a specialist division of The Portfolio Group, specialising in interim and contract payroll recruitment across the North of England. With a background in social work and a First-Class degree from Manchester Metropolitan University, Lily brings a uniquely empathetic and people-first approach to recruitment.

Since joining Portfolio in 2022, she has built a strong track record of placing payroll professionals into temporary and fixed-term roles – from Payroll Administrators and Officers to Consultants, Project Managers and Senior Leadership. Lily is known for her detailed market insight, straightforward communication style, and commitment to helping both clients and candidates navigate the evolving world of payroll work.