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A new report has advised that UK businesses should be taking on more flexible workers, such as umbrella company contractors, in order to aid the economic climate.

The latest Flexible Work Commission, by the Recruitment & Employment Confederation (REC), surveyed 29 businesses and employer bodies both from the UK and abroad, about their experience of using a range of flexible work practices.

According to the report, by taking on freelancers or umbrella service contractors and adopting more flexible working arrangements, UK businesses can reduce absenteeism, improve staff morale and productivity and are better able to attract and retain top talent.

The REC’s chief executive, Kevin Green, said, “A wider understanding of flexible work needs to be adopted by government to help move the debate beyond the current focus on family friendly working practices. Part-time working, contracting and other flexible solutions have been a significant factor in keeping people in work and companies in business during this recession.

“The UK has a competitive advantage in its flexible labour market and by enhancing and promoting the benefits of flexibility to all, we can leverage this advantage to create more, and better, jobs in the UK.”

David Frost CBE, former Director General of the British Chamber of Commerce and chair of the REC’s Flexible Work Commission, added,

“Whilst unemployment in this country stands at over 2.5m, it is still significantly below levels experienced during previous recessions.

“A key reason for this is that business has adopted a range of flexible working practices that have enabled them not only to sustain their companies but also, and importantly, to hold onto their employees. This flexibility was not seen in previous downturns.

“There is an opportunity to create a real positive legacy from the recession if we can share the knowledge and experience from organisations who have successfully used flexible work arrangements to improve their businesses 

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