As we venture further into 2024, the business and hiring landscape is undergoing significant transformations, particularly in how companies approach staffing and talent acquisition. Concept, alongside other firms in the recruitment market, have observed the growing demand for temporary/ contract hires. In the latest Hiring Trends Index report by Totaljobs, a 69% surge in temporary and contract hires was recorded for Q1 2024. This shift isn’t merely a statistic; it’s a testament to the evolving needs and strategies of modern enterprises.
Why Contract Hires?
Temporary and contract hires provide businesses with the flexibility to scale their workforce according to project demands. This agility is crucial in a fast-paced market where project scopes and timelines can change rapidly. Hiring temporary staff can also be more cost-effective than permanent hires, especially for short-term projects or when specific expertise is needed for a limited time.
Contract hires often bring specialised skills and experiences that may not be available within the existing workforce. This can be particularly beneficial for niche projects or when implementing new technologies. At Concept, we have seen a sharp rise in demand for our Project Services and Resource Augmentation service, where we supply tech teams to support a wide variety of tech projects. Utilising our services for the contract hires is a cost efficient, flexible and trusted way for businesses to connect with experienced talent and field-ready teams.
Furthermore, the hiring process for temporary positions is typically faster, allowing businesses to address immediate skill gaps without the lengthy recruitment cycles associated with permanent roles.
The Driving Force: Increased Competition for Skills
The current job market is highly competitive, with 59% of businesses reporting intensified challenges in finding candidates with the right skills. Employers are pivoting towards skills-based hiring. The majority of businesses (85%) are now employing at least one skills-based hiring strategy. Specifically, 43% have revised their job advertisements to highlight essential skills and competencies. This competition for skills is driven by rapid technological advancements, evolving industry standards, and the need for specialised expertise. As a result, companies are increasingly turning to temporary and contract hires to bridge the skills gap swiftly and efficiently.
Expanding Talent Pools: Adjusting Hiring Criteria
In response to the competitive talent landscape, over a third (34%) of businesses have broadened their hiring criteria. This adjustment includes considering candidates from non-traditional backgrounds, exploring different educational qualifications, and emphasising transferable skills. By expanding talent pools, companies can tap into a diverse array of potential hires who can bring fresh perspectives and innovative solutions.
With a fifth (20%) of businesses removing university degree requirements from their job adverts to help widen the search, and 26% of employers planning to increase efforts to diversify hiring in the second quarter of this year, 96% of those businesses had reported benefits in hiring after implementation, including talent attraction and engagement.
Attracting Talent: Increased Salaries and Investment in AI
To attract top talent, 40% of businesses plan to increase salaries, recognising that competitive compensation is a key factor in securing skilled professionals. Additionally, 25% of companies are investing in artificial intelligence (AI) and training programmes to address skill shortages internally. AI tools can help identify and develop existing employee skills, while targeted training ensures that the workforce remains adaptable and proficient in the latest technologies and methodologies.
The Future of Staffing
As we look ahead, the trend towards temporary and contract hires is likely to continue. Businesses are recognising the value of a flexible workforce that can adapt to changing market conditions and project requirements. At Concept, we are committed to helping companies navigate this shift, providing access to a pool of talented contract professionals ready to meet their specific needs.
Resource Augmentation
We provide dedicated teams to support a variety of projects and digital rollouts, matching our talent pool of experienced and certified tech specialists with your requirements. With us, it’s not just about filling seats but finding the right people who will help deliver your objectives.
Resource Augmentation is a service that allows you to supplement your existing team with additional resources. Whether you need additional talent to meet a deadline or require specialised skills on a project, we’re here to help.
Our team is deeply attuned to the distinct needs of tech projects across the UK. And with flexible support levels, we’re here to meet your exact needs, no matter your requirements. Learn more about our Project Services or Resource as a Service solutions which offer varying degrees of project ownership through an outsourced model.
Find out more about our services for employers here.
In conclusion, the rise in temporary and contract hires reflects a broader shift in how businesses are addressing the skills gap in 2024. By expanding hiring criteria, increasing salaries, and investing in AI and training, companies are not only competing for top talent but also fostering a more adaptable and resilient workforce. As this trend progresses, Concept stands ready to support organisations in finding the right talent to thrive in this dynamic environment.
