- 34% of UK professionals are interested in contract roles
- Employers in the UK will hire temporary or contract workers to assist with specific projects, according to 48%.
- In 2025, contractors will be most likely to value industry-specific skills (38%) and soft skill (31%)
34% of UK professionals are willing to take a contract over a permanent role in order to have more flexibility.
Robert Walters, a global talent solutions provider, has revealed that permanent staff may be more likely to switch roles this year.
Chris Eldridge is the CEO of Robert Walters UK & Ireland. “We are noticing a shift in values amongst professionals.” Professionals are looking for opportunities that align with their values, such as work-life balance. This trend is primarily what encourages professionals to choose a temporary or contract role over a permanent position.
Contract roles are attractive alternatives
A third of permanent professionals said they would consider taking a contract role this year in order to gain more flexibility. Nearly a quarter (24%) stated that the tighter budgets at their companies have increased pressure on their workload.
It’s not surprising that some permanent employees are considering switching. In fact, 30% of respondents said they were more interested in contract positions due to the higher earning potential.
The challenges are still there, with the uncertainty surrounding take-home pay. Companies continue to calculate the costs of the government-imposed National Insurance increases and the transfer of PAYE responsibility to umbrella companies rather than independent contractors.
Chris comments “Although contractors are often viewed as riskier options due to the lack of job security, recent high profile layoffs and disappointing bonus seasons have led professionals to rethink this. Some people may choose contract positions to gain experience or as a way of entering a particular company. Others, however, might view them as a long-term career.
Professionals who take on contract positions quickly gain skills and experience that can help them achieve better pay or flexibility in future jobs. Having in-demand skills is an important bargaining tool to get more from potential employers.
The gig economy is set to impact
The UK employers are under pressure to change their hiring strategies in order to fill business-critical roles, following the recent announcements by Sainsburys, Meta and other companies of further cuts to headcount.
A quarter of UK employers believe that the gig economy can enhance flexibility in their workforce this year. Another fifth thinks it will also increase competition on the market.
Nearly half of UK employers (48%) say they will hire contractors to help with specific projects this year. While 20% of employers say they would consider temporary hires because permanent headcount is frozen, another 22% said that they would do this to fill skills gaps.
Chris says: For employers, the short term nature of contract roles allows them to be more agile and respond faster to changes in the market and business requirements. Simultaneously it allows them to hire the required skillsets for finishing projects without increasing their permanent headcount, at a moment when many are still looking to cut back.
Change the card
In recent years, many career contractors have moved to permanent positions in order to increase job security.
This is about to change, as upcoming policies will increase National Insurance contributions to employers, and the economic situation will continue to be unstable. Employers are therefore more likely to opt for a flexible, agile workforce.
Job listings for contract roles that require skills in JavaScript (+6%), web development (+5%), and cybersecurity (+22%) have already increased compared to last year.
Further data from Robert Walters indicates that in 2025, the skills needed by contractors will be dominated by industry-specific skills (38%), followed closely by soft skills (31%).
Chris comments The dexterity and flexibility of a skilled workforce will be a real asset to many employers in the digital and tech industries this year.
Temporary talent is able to adapt to the changing cyber-attacks, and ensure that company operations remain secure.
Key areas of focus for contractors
Grant Thornton’s research found that 93% finance leaders in the UK plan digital transformation projects in their finance function within the next year. This could be an important area for contractors.
In fact, the number of job advertisements for contract or temporary staff in financial services has increased year on year. This is especially true for skills such as stakeholder management (+59%) or operational risk management (+18%).
Chris concludes As more businesses understand that financial rewards are more important outside of IR35 we have seen a rise in consultancy work. Businesses continue to hire for Tech projects like digital transformations that require specialist skills.
Contract roles allow professionals to gain key skills and experience faster, allowing them to secure their future in a competitive market.
The original version of this article One third of permanent employees consider temporary roles to increase flexibility appeared first on Human Resources News.
