News

As we discovered in our July blog, Is Peak a Thing of the Past?, the temporary labour market is changing – it’s becoming increasingly difficult for organisations to accurately predict Peak, and the reliance on and demand for temporary workers is growing due to shifting labour market trends. Here we delve more deeply into the evolving role of the temporary workforce, what industry trends are affecting this sector, and how decision-makers can adapt their recruitment strategies to deal with the new reality.

UK Labour Market Statistics

If we examine the latest labour market statistics that relate to temporary workers we can see some interesting and informative trends.

The Office for National Statistics (ONS) reports that the unemployment rate for people aged 16 and over now stands at 4.2%, meaning that 30.4 million people in the UK now have jobs. Its estimates for payrolled employees rose by 227,000 (0.8%) in the year from June 2023 to June 2024, increasing by 14,000 between May-June 2024. However, it also reports that the number of people aged 16-64 who are defined as ‘outside the workforce’ increased to 9.3 million in June – that’s 22.1% of the total workforce.

TALiNT Partners focuses on finance and its implications, noting that the economy improved slightly between May and June, with inflation falling to 2%, interest rates being dropped to 5% by the Bank of England Monetary Policy Committee (MPC), and wage growth down 6% on the last quarter, at 5.7%.

The Global Recruiter,  drawing on information from job search engine Adzuna which published its UK Job Market Report for July, highlighted the positive news that UK job vacancies rose to 862,043, a rise of 1.1%, bringing tentative optimism for UK businesses and recruiters. However, it advocates caution, citing the fact that vacancies are still 17.60% down on last July’s figures.

What do these figures mean? Despite the real-term drop in full-time vacancies, there is still a high demand for jobs, with 2.09 applicants for every vacancy. Temporary staffing needs continue to increase but are being impacted by the effect of economic inactivity amongst the UK workforce. The key drivers for temporary hiring continue to be short-term demand, in response to varying Peak, and the need for flexibility among organisations’ workforces.

Industry Trends Affecting Temporary Workers

Three main trends affect temporary workers, and their employers.

1. The rise of the gig economy and flexible working options – as far back as 2018 the then Department for Business, Energy & Industrial Strategy worked with the Institute for Employment Studies to define the gig economy as involving, “the exchange of labour for money between individuals or companies via digital platforms that actively facilitate matching between providers and customers, on a short-term and payment by task basis”. Since then this form of employment has increased both in popularity and numbers, with an estimated 4.27 million self-employed workers, as of June 2024.

Flexible working has also risen in popularity, largely thanks to recently-introduced legislation, the Employment Relations (Flexible Working) Bill, which gives workers increased flexibility over when they work, as well as the right to request flexible working from day one. 

2. An increase in demand for blended workforces – blended workforces (those containing not only full- and part-time employees but also casual workers and contractors) have increased in popularity over recent years, and benefit both employees and their employers. Employees benefit from the flexibility that this type of work provides and employers find that they not only attract talent from a more diverse pool, but also reduce staff turnover, and improve performance and engagement.

3. Impact of skills-based hiring on the temporary workforce – most employers are acutely aware of the skills gap and the challenges this brings, which is why many more of them are basing their hiring decisions on an employee’s skills, rather than their background or education. By evaluating candidates on the skills they have that are relevant to the role, employers can not only improve the quality of their hires, but also increase retention, reduce bias, and grow their talent pools.

Adapting Recruitment Strategies for Temporary Workers

In the face of so many difficulties in recruiting temporary workers, how can employers adapt their strategies to ensure success? Let’s look at three effective methods.

• The importance of quick onboarding and compliance for temporary roles: according to Aberdeen Strategy & Research, around 22% of staff turnover happens within the first 45 days of employment. A shocking statistic that demonstrates just how important quick and effective onboarding is. However, if done properly (ensuring new employees are aware of compliance, that they feel prepared, and that they understand the company culture), the percentage of people who stayed with the organisation for at least three years rises to 58%.
• The use of AI to streamline hiring for temporary workers: amid much discussion about the potential and dangers of AI recently, its practical uses can’t be ignored. For recruiters, AI can help to streamline the hiring process by helping them source candidates whose skills match a job profile and screen CVs, as well as reducing bias, automating admin, assisting in making data-driven decisions, enhancing the candidate experience and improving engagement.
• Building a flexible talent pool for sudden demand surges: to ensure that employers have a reliable and available talent pool on which to draw when they experience sudden demand surges they should consider a wide range of strategies including engaging passive candidates, building their employer brand and, most importantly, partnering with a temporary recruitment specialist with a proven track record of success.

Conclusion

In today’s challenging recruitment market, the significance of temporary workers cannot be understated. The gig economy, a rise in blended workforces and the impact of skills-based hiring have all contributed towards temporary work becoming an attractive and desirable way to work for both employers and employees.

However, to get the most out of a temporary workforce employers must get to grips with its nuances and requirements. That’s where a specialist temporary recruiter such as TaskMaster can help. With almost three decades of experience in providing temporary workforces for clients in the industrial, driving, NHS, FM, & Catering, and commercial sectors we have the expertise to help your organisation achieve its goals.

For more information about how we can help you with your temporary recruitment get in touch.