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With 41% of permanent workers saying that they’re planning to move jobs, more businesses are turning to contractors in order to fill skill gaps.

The Robert Half 2023 Salary Guide, which analyses market salaries, hiring trends and skills requirements across the UK, found that 55% of companies are planning to bring in more contractors over the next year.

Matt Weston, Senior Managing Director UK & Ireland, at Robert Half, commented, “We’re certainly seeing the impact of the Great Resignation or Great reshuffle as we see it continue to play out across the UK and our data suggests this trend will continue into 2023.

“What we have seen from our 2023 Salary Guide is an increased reliance on financial incentives to attract and retain talent as the cost-of-living crisis continues to be a concern for everyone.”

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Matt added, “However, throwing money at any problem is never a long-term solution, particularly as costs continue to grow for employers themselves.

“The reliance on the contract market is a natural move that we’d expect to see, but with the upheaval we’ve seen following the roll out of IR35, a repeal on Off Payroll that has since been reversed and Brexit immigration woes, this flexible labour market is already limited.

“What is required to solve the UK’s recruitment issues in 2023 is more training and better retention of existing staff. In the short term, the most effective way of bridging the skills gap is for employers to offer reskilling and upskilling programmes.

“In addition, the UK needs a sustainable talent pipeline driven by collaboration between industry and education – one that is highly skilled, flexible and trainable. For that, we need long-term thinking, not short-term fire-fighting ploys.”

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