Contractors across all core contracting disciplines have the potential to ease some of the UK’s acute skills shortages that threaten to derail the economic recovery.
This is according to new research [registration required] by umbrella company Parasol. It shows nearly three quarters (74%) of contractors believe that they are “well placed to address the national skills shortages in their field”.
Unsurprisingly, IT and engineering contractors have indicated they have a role to play helping their clients overcome their talent shortages, but according to Parasol: “This sentiment is most pronounced amongst contractors specialising in legal and insurance services (80%), sales and marketing (80%) and project management (78%).”
“Our research suggests that the skills shortage could be more widespread than previously thought, spanning professional services and the creative industries as well as IT and engineering,” notes Parasol managing director Derek Kelly.
However, he believes that this is a positive factor and gives contractors more options: “While this is a cause for concern for employers and UK PLC as a whole, it undoubtedly represents an opportunity for members of the professional flexible workforce.
“If recruitment agencies and their clients are unable to source permanent staff members with the necessary skills or experience, then contractors offer a short-term solution,” he adds.
The survey also highlights that the contractors most confident about their prospects are those working in the finance and healthcare sectors and in project management roles, which Kelly suggests means there is strong demand for contractors in these disciplines.
Prospects have changed dramatically for the better in other core contracting disciplines. Kelly explains: “An analysis of shifts in sentiment over the past 12 months reveals that IT, engineering and digital/creative contractors have shown the most dramatic improvement in confidence levels.”
Other highlights of the research include:
- 89% of contractors feel positive about their career prospects
- 92% say their confidence levels have either improved or stayed the same over the past year
- 81% plan on contracting for the long term
- 38% say responsiveness is the quality they value most in a recruitment consultant
- 27% cited earnings potential as the single biggest motivating factor in their decision to contract
- 31% view a workplace pension as either very or fairly important to them.
Regionally, contractors in the West Midlands are most upbeat about their prospects, with 94.1% of them saying their prospects have improved over the last 12 months. They are closely followed by contractors in London (93.5%) and in the South East (92.7%).
Kelly concludes: “With sales of new cars in the UK rising at the fastest rate for a decade, and British manufacturing firms at their most optimistic since the 1970s, it seems the manufacturing heartland that is the West Midlands is reaping the benefits – and that contractors working in the region are in turn experiencing an improvement in their fortunes.”