Demand for temporary recruitment rising

Delivering specialist projects

Within the IT sector, interim consultants and contractors have been used to deliver key projects for decades. Growth in the use of interim consultants has occurred across each of our other specialist sectors (HR, Marketing and Accounting). Specialists have been able to deliver specific projects to set costs in Learning and Development, People Strategy, Software and Data projects, Digital Marketing, Financial Strategy and Executive support. Over 2023 we have seen 20% growth in the supply of specialists to deliver projects.

There is still some reticence amongst employers to the use of self employed consultants due to the legislative changes around IR35 an PAYE. With the most recent changes to this legislation now 3 years old, those companies that have embraced good practice around identifying the IR35 status prior to consultant onboarding have been able to benefit from the use of flexible experts and deliver projects more swiftly. We take a look at the IR35 risks to employers here

Could flexible employment be here to stay?

Whilst the job market is seeing reduced numbers of vacancies being advertised and a small increase in candidate availability, it has been possible to satisfy demand for regular skills with temporary positions. When demand returns to the permanent job market and the economy is back on a growth footing, filling temporary positions will become more challenging.

The use of specialist skills in a temporary capacity is without question here to stay, across a growing number of roles. With businesses turning to process automation, and adopting AI technology in an attempt to reduce costs and increase productivity, the delivery of this transformation will require particular skills and expertise. Furthermore, the capacity to accurately plan labour costs for project work is especially beneficial for budgetary control whilst profits are being squeezed.

Are there any downsides to temporary hiring?

Limited commitment cuts both ways and temporary employees are likely to be less engaged in the business than their permanent counter parts. One could argue that temporary recruits are less in tune with the purpose of the organisation and less likely to be as productive or see the long term value in aspiring to reach goals.

Temporary recruits represent a constant flight risk as better contract offers and longer contracts are presented. To minimise the likelihood of a temporary worker leaving towards the end of their contract, we recommend having conversations about continued work happen at least a month before the end of the temporary contract period. Find out how to recruit and retain professionals in a skills shortage.

Specialist skills along with any intellectual capital garnered during the contract leave with the consultant. Managing this transfer of knowledge to permanent team members can take time and may not be in the best interest of the consultant which can lead to conflicts of interest. Defining project timelines, project hand overs and skills transfer should all form part of the project brief from the outset of any contract.

In conclusion

The current job market favours the use of temporary resource and is proving a popular option during a prolonged period of high costs and uncertainty. How long this will continue depends on the period of time before the permanent job market returns to growth.