It’s going to be a good year for umbrella company contractors, according to the Association of Professional Staffing Companies’ chief executive Ann Swain.
Ms Swain said in a recent interview that 2013 should build on the positive growth that the freelance working industry has seen over the course of the last 12 months. Contract workers have been in high demand throughout 2012, added the chief executive, primarily for their ability to provide flexible solutions to staffing problems that don’t require the hiring of expensive permanent employees – something that has seen employers increase their preference for temporary workers sourced from umbrella service companies and recruitment agencies right through to the end of 2012.
The financial commitment of a permanent hire can be quite a large one, Ms Swain said, and not just because of higher taxation requirements on top of other payroll costs. Pension payments for permanent employees can be a massive drain on a firm’s income as well, especially during times of sluggish economic recovery such as the last few years, which makes the allure of freelancers quite high.
As the financial climate of the entire eurozone is still quite definitely in flux, the chief executive said that many firms may consider delaying any decision to increase their number of permanent staff for at least a few months into 2013. However, in the meantime contract workers will continue to be used in order to keep these firms competitive and productive, and Ms Swain remarked that permanent staff may want to consider outside contracting opportunities as a way to gain additions to their skill sets and to broaden their work experiences.
