Specialist recruitment firm, Robert Half, has urged more employers to turn to contingent resources to mitigate business continuity risks amid widespread skills shortages.
According to the firm’s hiring intentions research, almost two-thirds (64 per cent) of employers are very or somewhat concerned about addressing skills gaps, with 61 per cent worried about keeping critical business projects on track as a result. A further 59 per cent are concerned about maintaining operational continuity this year. This has given businesses in the professional services sector more reason to expand their contract headcount in 2025, with 83 per cent of finance and accounting managers planning to hire contractors and project-based professionals in 2025. In IT this stands at 79 per cent, while for admin and customer support, 77 per cent of hiring managers intend to expand their project-based headcount in 2025, a 9 per cent increase on previous data. Robert Half believes that while permanent recruitment might be subject to longer hiring windows in light of the increased costs of employment in the UK, business growth and continuity is clearly at risk – and contingent resources could be the answer.
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 per cent and 11 per cent respectively).
“It is not surprising to see businesses approaching their people strategies with caution, especially amid economic uncertainty both at home and abroad,” says Matt Weston, Senior Managing Director UK & Ireland at Robert Half. “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. And while traditional permanent staffing models incur higher employment costs due to tax rises, the demand for business-critical talent remains unchanged.
“While permanent hires have long been the standard approach to building teams, the current economic climate demands greater flexibility,” he adds. “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, organisational 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 recognising the need for temporary experts. However, as this demand grows, so will competition for these resources, which will create a further challenge for businesses,” Weston concludes.
