Figures from Indeed Flex suggest that nearly half of UK businesses (46) are currently struggling with staff shortages. A survey of 2,000 UK business owners and hiring managers reveals that nearly a fifth (38) of firms that are short-staffed say the biggest challenge is filling vacancies, while a third (34) say it’s retaining talent.
Recruitment has been made harder for a lot of firms following the rise in National Insurance Contributions (NIC) and increases to the National Minimum Wage and Living Wage on April 1. Separate research by Indeed Flex reveals that 60 of UK businesses say April’s National Insurance hike will slow down hiring this year.
Against this backdrop, close to a third (30) of firms admit they don’t currently have the budget to make new hires, and 27 say they are cautious about hiring with so much economic uncertainty. Meanwhile, 14 have recently had to make redundancies.
As businesses juggle stretched budgets and staff shortages, 51 of firms plan to increase their reliance on temporary workers as part of their regular workforce over the next 12 months. Among them, 41 cite seasonal demand as the main driver, while 34 value the speed and ease of hiring temps – and the same share see it as a way to manage rising costs.
“Businesses today are operating in a complex landscape,” said Novo Constare, CEO and Co-founder of Indeed Flex. “With budgets tightening due to recent fiscal changes and competition for top talent at an all-time high, many are reassessing how they build and maintain strong teams.
“Traditional hiring models are no longer enough,” he added. “The process can be slow, costly, and often unsustainable – especially when the need for skilled talent is immediate. These challenges ripple across operations, impacting productivity, employee morale, and overall business performance.
“That’s why more companies are turning to temporary staffing as a core strategy — not just a quick fix. With access to high-quality, vetted professionals, businesses can stay agile, respond to shifting demands, and maintain momentum without compromising on standards.
“Combined with the right technology, temporary staffing becomes even more powerful,” concluded Constare, “offering cost-effective, scalable solutions that help businesses meet their goals while staying within budget.”
