Navigating the Trend Towards Temporary Hiring: Embracing Flexibility in the UK Job Market

As we progress through 2023, it is evident that the UK job market is undergoing significant transformations.

A notable shift has been observed in the decline of permanent hiring, with many companies now turning to temporary and contract workers to fulfil their staffing requirements. Recent reports indicate a 20% decrease in permanent hiring compared to previous years, prompting discussions on whether this is merely a temporary anomaly or a fundamental change in hiring practices.

Despite economic uncertainties, several factors suggest that permanent hiring may not return to pre-pandemic levels anytime soon. The widespread adoption of remote work and virtual recruitment processes has made companies realise that having a large number of permanent staff on-site may not be necessary. Furthermore, the gig economy's emergence and the growing preference for flexible work arrangements have led many workers to seek the freedom and diversity offered by temporary or contract roles.

This shift has even affected traditionally permanent positions, which are now being adapted to operate on a more contingent basis. Many contract roles are now deemed inside of IR35 and are being treated as PAYE/Umbrella positions, allowing organisations to benefit from the flexibility of worker types and reduce operational expenditure.

The challenge of building a cohesive and committed workforce in 2023 applies equally to both permanent and flexible hires. It is essential for organisations to have a well-defined plan to assemble a team with the right skills and shared goals, irrespective of worker type.

So, what implications does this trend hold for the future of hiring in the UK?

The recruitment landscape is undoubtedly evolving rapidly, and companies must adjust their strategies to remain competitive. We are witnessing a shift in people strategies to embrace longer-term temporary and contract workers, as well as exploring alternative hiring models such as gig work and employed worker models. Companies that can demonstrate flexibility and adaptability in their hiring practices will be better positioned to weather the current challenges and thrive in the coming years.

While temporary hiring can offer numerous benefits such as increased flexibility, cost savings, and access to specialized talent, it also presents new challenges for businesses. Managing temporary staff can be complex and time-consuming, and companies may struggle to identify and attract the right talent promptly and efficiently.

To effectively manage temporary staffing, it's important to have a clear understanding of your company's needs and objectives. This includes identifying areas where temporary staff can be most beneficial and developing a plan for sourcing and managing talent.

Technology can be a powerful tool for managing temporary staffing, by automating administrative tasks and streamlining the recruitment process. This can free up internal resources for more strategic tasks.

Many companies already have a pool of temporary staff, such as contractors and freelancers, that they can draw upon when needed. Engaging with this talent pool can be an effective way to manage temporary staffing, by building strong relationships and developing a talent pipeline.

Managing compliance can be a challenge for businesses, especially when it comes to temporary staffing. It's important to stay up-to-date with the latest regulations and best practices and to ensure that all temporary staff are properly vetted and trained.