Contractors could benefit from small businesses’ reluctance to hire.
(2 minutes to read)
The latest London Business Monitor has suggested that contractors could very much benefit from small businesses remaining cautious about hiring permanent employees.
The recent quarterly report, which surveyed more than 250 SMEs (small and medium-sized businesses) and was compiled by the Western Union Business Solutions for the Evening Standard, shows that despite the fact that the UK economy is most definitely showing signs of recovery, and small businesses are reported to have become more confident about their own prospects, they still seem to be holding back with hiring.
According to the research, 71% of the capital’s smaller businesses said that they expect to maintain their existing staffing levels, whereas just 22% say that they will look to create new jobs.
However, this is good news for contractors, with businesses seemingly hesitant to commit to permanent staff, it is more likely that they will turn to the flexible workforce to help with projects and extra workloads.
Jonathan Rees, UK managing director of Western Union Business Solutions, said, “London’s small and medium-sized businesses are refusing to throw caution to the wind. While optimistic, it is clear that the capital’s SMEs are aware that we are still a way off from a full recovery.
“The sunshine and sporting successes may make for a memorable summer, but SMEs in the capital are well aware that the long road to recovery is at best just beginning.”
Lisa Keeble is the Managing Director for Contractor Umbrella Ltd, one of the UK’s Most Respected Umbrella Companies and founder member of AllUmbrellaCompaniesAreEqual.
Learn more about Lisa on Google.