The world of work is evolving. Key societal events such as the COVID-19 pandemic and the cost-of-living crisis have heavily impacted the way we work, leading to a rise in demand for interim and temporary roles.
With businesses facing new economic realities, talent shortages, and technological advancements, organisations are increasingly turning to flexible workforce solutions to remain competitive. Despite some recent slowdowns in hiring, key trends indicate that temporary staffing is poised for growth.
In this blog, we explore:
- The five key drivers behind the growth of temporary and interim positions
- How these changes could impact professionals and the world of work
1) Skills shortages mean businesses are looking for short-term fixes
One of the major drivers of temporary staffing growth is the ongoing skills shortage across various industries. Businesses are struggling to find the right talent, with recent reports indicating that 59% of employers are facing difficulties filling vacancies. This figure is even higher for larger companies (over 1,000 employees), with 74% experiencing recruitment challenges.
This means that organisations are increasingly leveraging temporary staff, contractors and freelancers to bridge the skills gap and ensure business productivity and efficiency. In fact, there has already been a 69% increase in the hiring of temporary workers, highlighting how employers are adapting to the competitive talent market. By employing interim professionals, businesses can access specialised skills on demand without the long-term commitments – and cost - associated with permanent hires.
2) Economic uncertainty may be encouraging cautious hiring
The economic landscape remains unpredictable, with rising business costs, increased taxes and employment law changes meaning that many businesses and hiring managers are hesitant to make permanent hiring decisions due to budget limitations.
A recent survey by KPMG and the Recruitment and Employment Confederation (REC) found that employer confidence in hiring is at its weakest level since August 2020. The same study revealed that vacancy levels have dropped significantly, reflecting a slowdown in permanent hiring. However, while full-time employment may be experiencing a downturn, this presents an opportunity for temporary staffing agencies and recruitment consultants. Companies looking to maintain operational efficiency without long-term financial commitments are likely to increase their reliance on interim professionals.
3) The rise of AI in the recruitment sector
Technological advancements, such as Artificial Intelligence (AI) and automation, are streamlining recruitment processes, making it easier and quicker for businesses to identify and employ temporary talent. Thanks to AI-powered platforms, it is now easier than ever for companies seeking interim staff – what was once a sometimes-complex process is now a lot easier, making interim and temporary hiring more attractive.
Staffing firms and employers are investing in technology to create a seamless hiring experience, ensuring they can attract top temporary talent efficiently.
4) The rise in hybrid work and flexibility for employees
The demand for flexible work arrangements is stronger than ever. Research shows that 46% of professionals have indicated they would decline job offers that do not include hybrid work options. As a result, businesses are restructuring their workforce strategies to accommodate employee preferences while ensuring productivity and business success.
Temporary staffing solutions offer an ideal balance, allowing companies to scale their workforce based on project demands while providing greater flexibility for employers. Freelance and contract-based employment are gaining traction as professionals seek more autonomy over their careers. As the workforce continues to shift towards a project-based model, temporary employment will become an increasingly attractive option for both employers and workers.
5) Increased focus on employee wellbeing and EDI initiatives
Employee wellbeing has emerged as a top priority for businesses aiming to attract and retain top talent. Mental health support, work-life balance and professional development opportunities are now a priority for employers – not just employees. This shift is contributing to the growing appeal of interim roles, as companies create a more supportive and inclusive work environment for all employees.
Additionally, EDI (Equality, Diversity and Inclusion) initiatives are driving significant changes in recruitment strategies, with many businesses committing to building diverse teams and using temporary staffing to access a wider talent pool. By implementing inclusive hiring practices, organisations can attract skilled professionals from underrepresented backgrounds, fostering innovation and improving overall business performance.
The future of interim and temporary staffing
Despite economic and hiring challenges, demand for temporary workers is set to rise in the coming year. Businesses are increasingly recognising the benefits of an agile workforce, while professionals are becoming more open to flexible employment models. A combination of skills shortages, economic uncertainty, AI-driven recruitment, hybrid work preferences, and a greater focus on well-being and EDI is driving a surge in interim staffing.
For businesses navigating an evolving job market, investing in temporary workforce strategies will be crucial. Likewise, professionals who embrace reskilling and adaptability will find abundant opportunities in the expanding gig economy. As the year unfolds, temporary staffing is expected to become a key element of workforce planning, helping businesses stay resilient and competitive in an ever-changing world of work.