New findings from global talent solutions provider Robert Walters show that this year may see a spike in permanent staff switching to contract roles.
Chris Eldridge, CEO of Robert Walters UK & Ireland: “We’re noticing a shifting of values amongst professionals. Work-life balance and flexibility are increasingly prioritised, causing professionals to scope out opportunities in line with these values. It’s principally this trend that’s encouraging professionals to take on a contract or temporary role over a permanent one.”
Contract roles offer attractive alternatives
In addition to the third of permanent professionals saying they’d consider taking on a contract position this year to gain more flexibility at work – almost a quarter (24 per cent) also state that tighter company budgets have led to more pressure being placed on their workload and output by company leaders.
With cost cutting incentives, bonuses or pay rises lacking for many this year – it’s unsurprising that some permanent staff are considering making the switch. Indeed, 30 per cent also stated being more attracted to contract roles due to higher earning potential.
Nonetheless – challenges remain with considerable uncertainty around take home pay as companies continue to work out the cost of Government imposed National Insurance hikes and the transition of PAYE responsibilities to umbrella companies instead of independent contractors.
Gig economy set to influence
With recent announcements of further headcount cuts announced by various companies, including Sainsbury’s and Meta, pressure mounts on UK employers to pivot their hiring strategies to continue fulfilling business critical roles.
Indeed, a quarter of UK employers think that the gig economy could enhance workforce flexibility this year – with a further fifth thinking it could also increase market competition.
Nearly half (48 per cent) of UK employers state they’d hire contractors this year to assist with specific projects. Meanwhile, 20 per cent say they’d consider temporary hires due to permanent headcount freezes, and a further 22 per cent would do so to plug skills gaps.
Change on the cards
Over recent years many ‘career contractors’ made the move to permanent roles for increased job stability.
However – this is set to change with upcoming policies ushering in raised National Insurance contributions for employers and continued economic instability, leading employers to increasing opt for a more flexible, agile workforce.
Already, job listings for contract roles calling for skills in cybersecurity (+22 per cent), JavaScript (+6 per cent) and web development (+5 per cent) have shown increases on last year.
More broadly, further data from Robert Walters shows that industry-specific (38 per cent) and soft skills (31 per cent) will remain the most vital skillsets for contractors in 2025.
Key areas for contractors
Research from Grant Thornton found that 93 per cent of finance leaders in the UK planning digital transformation projects for their finance function in the next 12 months – this could be a key area for contractors.
Indeed, job ads for contract and temporary staff within financial services are seeing year-on-year growth, especially for skills like stakeholder management (+59 per cent) and operational risk management (+18 per cent).
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