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Business continuity skills drive demand for contract workers
Widespread skills shortages see more employers turning to contingent resources to mitigate business continuity risks, according to Robert Half’s latest hiring intentions research.
According to the Robert Half study, almost two-thirds (64%) of employers are very or somewhat concerned about addressing skills gaps, with 61% worried about keeping critical business projects on track as a result, and a further 59% say they are concerned about their organization’s ability to maintain operational continuity in 2025.
The concerns have given businesses in the professional services sector more reason to expand their contract headcount this year, with 83% of finance and accounting managers saying they plan to hire contractors and project-based professionals. In the IT sector this stands at 79%, while for admin and customer support, 77% of hiring managers intend to expand their project-based headcount in 2025 – a 9% increase on previous data.
This is in keeping with latest data from the Association of Professional Staffing Companies (APSCo), which revealed an uptick in contractor recruitment both month-on-month and year-on-year in May (4% and 11% respectively).
Owing to the increased costs of employment in the UK, permanent recruitment may be subject to a longer hiring window. This puts business growth and continuity at risk. “It is not surprising to see businesses approaching their people strategies with caution, especially amid economic uncertainty both at home and abroad. Nonetheless, with a growing number of firms raising concerns over operational resilience, the need for the right talent and skills is very much on the rise. While traditional permanent staffing models incur higher employment costs due to tax rises, the demand for business-critical talent remains unchanged,” says Matt Weston, Senior Managing Director UK & Ireland at Robert Half.
“While permanent hires have long been the standard approach to building teams, the current economic climate demands greater flexibility. Contracting offers a more agile and often cost-effective solution, enabling businesses to respond quickly to changing demands and access specialist skills for critical projects. In a period marked by uncertainty and evolving priorities, organizational growth depends not just on adding headcount, but on securing the right talent at the right time, and contracting is a vital lever in making that possible.
“The fact that APSCo data is showing an uptick in contractor hiring demonstrates that more employers are recognizing the need for temporary experts,” continues Weston. “However, as this demand grows, so will competition for these resources, which will create a further challenge for businesses.”