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Businesses turn to contractors in 2012
by Susie Hughes at 13:52 03/01/13 (News on Business)
Businesses have turned to contractors to meet their professional level staffing requirements rather than increase their permanent headcount.
According to research from agency group, the Association of Professional Staffing Companies (APSCo), employers have continued to place greater reliance on temporary staff to carry out professional and management level jobs. APSCo cites the uncertain economic climate over the last twelve months as the reason for the decline in demand for permanent staff and the increase in the use of temporary contracts.

The number of temporary placements in professional staffing categories rose by four per cent in 2012 whilst permanent placements in 2012 dropped two per cent


Ann Swain, Chief Executive for APSCo, said: “We have seen positive news on employment recently with the Office for National Statistics reporting both an overall fall in unemployment and a rise in the number of permanent jobs.

“However, we have not yet seen that trend reflected in the hiring of professional level staff – in fact employers’ preference for offering temporary contracts has intensified right through to the end of the year.

“Permanent hires can be a big financial commitment – aside from the immediate salary costs, employers will also need to think about pension payments and other factors such as liability for any possible redundancy payments.

“Rather than making permanent hires, many businesses may want to wait and see what 2013 will bring.

“While 2012 has not been a great year for job-hunters prioritising long-term security, a temporary role could offer professional staff the chance to broaden their experience and gain some additional skills.”

Information Technology
The most actively recruiting sector for both permanent and temporary staff during 2012 was IT. APSCo’s data shows that the number of temporary IT placements rose by over six per cent during 2012.

The number of temporary marketing and media placements rose eight per cent over the course of the year though the sector also saw a big fall in the number of permanent placements, down by 15 er cent.

APSCo’s research also identifies a number of staffing hotspots in 2012, including demand for oil and gas engineers and clinical and scientific staff.

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