The latest Jobs Outlook survey by the Recruitment and Employment Confederation (REC) highlighted a significant decrease in the amount of contractors choosing to stay on as a permanent employee with their client.
The survey revealed that in November 2013, 91% of businesses claimed that at the very minimum, one contractor or temporary member of staff that had been originally hired to carry out a particular assignment had ended up joining as a full time employee. By August 2014 the figure had almost halved to 55%, indicating that these temporary members of staff are choosing to stay as contractors, potentially due to the increase in confidence of job prospects.
REC reported that "business stability is returning, as the number of businesses cutting the cost of their workforce through redundancies, headcount freezes, reduced hours or pay has halved in the past year from 33 per cent in August 2013 to 17 percent last month".It is not just growth in business confidence that is inspiring more umbrella and limited company contractors to stick to temporary roles but the growing effects of the skills shortage. REC continued to highlight the importance of a temporary workforce in order to fill this gap and provide short-term access to strategic skills.
There is no doubt that the future looks bright for contractors with REC stating that "43 per cent plan to increase their temp staff in the next three months and 40 per cent plan to increase their temp staff in the next four to twelve months".