Growing trend to hire flexible workers

Flexible workers, including freelancers and remote staff are a growing trend in the UK hiring market, according to a report by Regus.

Regus' twice-yearly Business Tracker report polled 2,700 UK companies and found that corporate Britain does not expect to see the full momentum of economic recovery until the second half of 2012. It shows a marked downturn in business confidence since April and a fall in company performance. However, it says over half of UK companies plan to increase headcount in the next two years (54%), compared to just 34% a year ago, with the focus switching to flexible workers, including freelancers, remote staff and new graduates.

The report shows that firms that trade internationally are performing better in each of the report’s indicators than domestic players.

It finds that UK companies’ revenue growth has fallen well short of expectations expressed in April’s report, when 69% of companies stated they expected revenue growth in the next 12 months. Six months later, only 36% of firms have so far achieved this growth - two percentage points lower than April and significantly lower than other major economies such as the US (40%), Germany (68%) and France (53%).

The proportion of UK firms reporting profit rises fell by three percentage points to 28%, behind all major economies. Over half (62%) of companies now believe that Britain will not see recovery in full swing until the second half of 2012. 

Some 39% of firms intend to hire more freelance staff in 2011/2012, 31% will employ more remote workers and 30% will take on more graduates. Regus says this is a clear signal that firms are seeking to invest in low-risk, flexible strategies that drive growth. However, it reports a clear divergence between the hiring prospects of firms that trade internationally and those solely focused on the national market - 61% of international firms report they intend to hire more staff in the next two years compared to only 49% of national firms. Significantly greater proportions of international firms are planning to recruit flexible workers – freelance and remote staff – and invest in graduates and foreign workers.

Regus says the possibility of a link between a flexible recruitment strategy and company performance is given credence by the finding that internationally trading firms are reporting higher revenue and profit increases than domestic rivals.

Celia Donne, Regional Director at Regus, comments: “The Regus Business Tracker illustrates the recent reversal in the economic outlook, especially in optimism which was clearly on the rise in April. The dip in revenue and profit increases may be minor, but it is telling that this period’s revenue increases are nowhere near the projections made back in April.

“That said, businesses are actively investing in their most valuable asset: people power. With 27% of the employed population in the UK now deemed to be flexible workers, freelance and remote working are becoming an increasingly popular solution to increase headcount while remaining flexible and rapidly scalable.

“Firms that only operate in the national market should take note that they are being outperformed by those targeting overseas markets. It is now possible for even very small operations to establish a low-risk presence in overseas markets without making lengthy premises or equipment commitments and allowing them to expand or withdraw depending on market conditions.”