Ryan FowlerUK businesses are increasingly turning to temporary staff, freelancers, and contractors in response to heightened job market competition and skills shortages, according to the latest Hiring Trends Index by Totaljobs. This quarter, 27% of businesses reported hiring temporary staff, marking a 69% increase from the previous period.
The survey, which included over 1,000 HR decision-makers, highlights a growing demand for specific skills, with 59% of businesses experiencing increased competition, which escalates to 74% among larger companies with over 1,000 employees. Employers note that candidates now have higher expectations for salaries and benefits, and demands for remote working are complicating recruitment efforts.
To address these challenges, 85% of businesses are adopting skills-based hiring practices. Strategies include updating job adverts to emphasise skills and training hiring managers on competency-focused interviews. Additionally, one-fifth of businesses have removed degree requirements from job listings to broaden their talent pool.
Julius Probst, labour market economist at Totaljobs, emphasises the need for long-term planning to address skill gaps effectively. “While immediate measures are crucial, only 21% of businesses have conducted a skills gap analysis for long-term workforce planning,” he noted. This strategic foresight is essential for maintaining a competitive edge in the evolving labour market.
