Contractor vacancies across the public sector are double those in comparably sized private sector organisations, according to the Chartered Institute of Personnel and Development/Hays Resourcing and Talent Planning survey.
The survey also shows that the ratio of contractor to permanent employee demand is much higher, “reflecting the ongoing funding cuts as part of the Coalition Government’s measures to reduce the budget deficit”.
Public sector service providers are hiring contractors to maintain service levels. This is partly driven because contractors are not employees, and so organisations can continue to reduce permanent headcount while continuing to meet their commitments.
The report’s findings on the impact of the Agency Workers Regulations (AWR) are less conclusive. Since AWR came into force in October 2011, a quarter of all those surveyed have reduced their use of contractors and temps. The figure rises to a third within organisations having 1,000 to 4,999 employees.
However, a fifth of all organisations have increased their use of contractors and temps in 2012, compared to 2011. This increase was driven by the public sector, which was more than twice as likely to hire contractors post-AWR than comparable private sector organisations.
Anecdotal evidence suggests that, since the introduction of the public sector off-payroll rules in September 2012, central and local government departments and agencies have been experiencing difficulties in recruiting contractors, who have been put off by the inconsistent enforcement of the rules.
Overall, the survey finds that experienced and skilled managers, technicians and professionals are in greatest demand, with many organisations unable to hire the workers they need. “The main reason for recruitment difficulties was a lack of necessary specialist or technical skills,” says the survey.
It also confirms that contractor demand is centred around large organisations with more than 5,000 employees, whereas small companies with 1-49 employees show virtually zero demand for contractors.
“We are starting to see confidence slowly returning to the jobs market with interesting and challenging opportunities available for those highly skilled professionals who are looking to make their next move,” notes Hayes Human Resources director Barney Ely. “Employers are facing a competitive market when trying to attract people to fill skills gaps.”