UK companies are increasingly recognising the benefits of working with contractors and freelancers, a new report highlights.
Businesses in the UK are increasingly recognising that they can save significant sums of money by working with limited company contractors and freelancers, suggesting that even more opportunities for self-employed individuals could be on the way.
According to research carried out by PeoplePerHour in association with the European Commission, freelancers helped to save companies in Britain more than £90 million in 2016, OnRec reports.
During this 12-month period, contractors provided UK firms with over nine million hours of work, which is equivalent to 800,000 hours a month, demonstrating just how much this segment of the labour market is expanding.
By awarding assignments to workers for short-term periods, businesses saved approximately £10 per hour compared to if they had hired a worker on a full-time basis and had to pay them even when they weren't directly working on the project they had been recruited for.
In fact, the report predicted that even small businesses could collectively save as much as £26 billion per year if they made better use of personal service company contractors and freelancers.
Working with these self-employed individuals allows for contracts to be drawn up that suit both parties, meaning the contractor can fit in the work around their other assignments and personal commitments, and the business does not need to be paying them for time when they are not needed.
This is even despite the fact that contractors and freelancers can set their own pay rates, meaning they can ensure they are able to take home more than if they were working under one employer.
Xenios Thrasyvoulou, Founder and Chief Executive Officer at PeoplePerHour, explained: "Freelancers are an increasingly important part of the workforce and overall economy.
"Businesses are already tapping into freelance talent to accelerate growth whilst keeping overheads low, making sure their budget goes further whilst making other efficiency gains in matching the right talent with the right tasks."