Employers who took part in the study reasoned their decision as being anxious about the possible increased cost in having to grant temporary agency workers the same pay, pension and benefits as permanent employees as well as having to accept the cost of having to liaise with agents more closely.

Speaking to Contractor UK, Allen & Overy employment partner Stefan Martin commented on the potential impact of the AWR;

“The advantages of using a flexible workforce during the current economic climate will be compromised as employers feel the burden of additional rules and regulations. While businesses will undoubtedly continue to use agency workers, this will result in increased costs. Rather than strengthening their rights, this may actually make the position of agency workers much more uncertain, exposing them to early termination of contracts.”

Figures from a report published recently by IT specialist CWJobs reveal an 11.1% increase in the number of IT contract vacancies over the first quarter of 2011; this resulted in contract rates for the IT sector increasing for five consecutive quarters.

CWJobs director Richard Nott spoke positively about these figures, which specifically highlighted software and financial services to be the two biggest contributors to IT contracts, with 46.4% and 35.8% of demand respectively. He said;

“The market has continued to stabilise and our latest data shows that demand for IT professionals has now increased for six consecutive quarters. 2010 saw steady growth in demand for IT personnel, with an eight per cent increase in the second quarter, followed by eight per cent in the third and five per cent in the final quarter of the year.”

Mr Nott did warn that these figures were lower than those pre-recession. However, IT Contractors also led temporary job demand last month, and despite some reports suggesting some workers may seek contracts abroad, the UK market is certainly on its way up.

ICS are one of the leading contractor accountants and administration companies and have helped thousands of contractors working in a range of industry sectors. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

The Government have been urged to help SMEs and support the creation of new jobs, so this new initiative is expected to make it easier for small businesses to access contracts and is part of a government overhaul of public procurement procedure.

At the launch of the new site on Friday, Prime Minister David Cameron said;

“Today, we are announcing big changes to the way government does business. By that, I mean what I say: literally, the way it does business. The contracts it signs, the goods and services it purchases – and the way it purchases them.”

“We need to make the system much more open, more competitive and transparent.”

This initiative is hoping to increase the competition for contracts and ensure that 25% of government contracts are awarded to SMEs. The Contracts Finder site will display all those with a value of £10,000 and over as well as removing time consuming pre-screening requirements.

The REC, who have highlighted the benefits of contractors and the use of highly skilled temporary workers, were thrilled with these developments. Their Chief Executive Kevin Green said;

“At long last, we are starting to see action instead of just words. The REC has consistently argued for tendering procedures to be made more efficient. We seek a competitive and dynamic market place where recruitment businesses compete on their competence and capability. We also need to find the right balance between streamlining procedures and verifying quality standards.”

“The Government has been very clear in its commitment to help SMEs gain access to public sector work. Its announcement is a tangible outcome of this. The REC will monitor how the measures are implemented on the ground and will continue to work constructively with Cabinet Office and OGC.”

ICS are one of the leading contractor accountants and administration companies and have helped thousands of contractors working in a range of industry sectors. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

Responses from contractors working across numerous sectors and experts in the marketplace all agreed that this is not a temporary symptom of the current economy but a trend which was only going to expand and become the ‘new normal’.

One respondent answered;

“Most definitely, I expect this trend to grow. My company has researched changes in the marketplace and companies need to access expertise (at a high level) without the high price tag. To me, this is an alternative employment model for both employees and employers. The trend is toward being payroll competitive – managing the costs of your payroll by paying for the expertise only when you need it.”

A Programme and Project Management Consultant added that he knows that contractors have always been part of the mix, but quite a ‘small elite part’. However, there is now significant proportion across a much wider range of fields and levels. He believes they still won’t replace permanent staff in most positions as the benefits of loyalty and building expertise and knowledge, and the lower cost of permanent employees, will keep contractors out of many positions.

What are your thoughts? Do you think contracting is becoming the new norm? Use the comment box below to share your thoughts.

Although there is increased optimism within the contracting sector, many contractors are still struggling to find work with new or existing clients. Keeping in touch with contractors and clients you have previously worked with could help you find your next role.

Over half of PCG members surveyed believe Linked In is a vital tool for contractors and freelancers. It is a great way to keep in contact with previous colleagues, contractors and clients but it is also great for listing your skills, the role you are looking for and your current availability. A simple networking tool, you can also join relevant groups’ specific to your skill set or sector you would like to contract in.

By spending time now reconnecting via the internet, you may find yourself landing your next contract role.

Do you win most of your contracts through recommendations by others or keeping in contact with existing clients? We’d love to know how important you think networking is when securing a new contract.

TipTopJob, an online job board wants users including contractors to have the ability to search for work 24 hours a day, 7 days a week. Mike Dauncey, CEO of TipTopJob said: “We are tremendously excited by the new addition to our service. Through developing and implementing this cutting edge facility we are enabling jobseekers to be on the hunt for employment 24/7. We want our site to be accessible to those who may not be in front of a computer, whether they are travelling somewhere or unable to access traditional forms of internet.”

Past articles written by ICS have discussed how to find your next contract through job sites such as TipTopJob, but also social networking sites such as Linked In and Twitter. This move by TipTopJob however, clearly shows that those within the recruitment industry are continuing to utilise new technologies to make the search for permanent and temporary roles more accessible for the seekers.

Contractors using the new app will have full access to more than 80,000 job vacancies spanning 35 specific industry sectors, and will also be able to email or save their favourite listings. In addition to the listing facility the application also includes a helpful advice section featuring 50 detailed guides on all things recruitment.

It may be useful to read some articles by ICS which aim to help you find your next contract through a variety of methods;

A New Era Of Networking

A Helpful Guide To Sourcing New Contracts

Contractors Should Embrace The Internet

ICS Embraces Social Networking

Tweet To Find Your Next Contract

Some 22.1 per cent of the 779 professionals polled by contractor services provider Giant Group expect most of their contract opportunities to come from the financial sector. The numbers represent a 50 per cent rise in confidence on six months ago, when just 14.7 per cent of IT contractors expected to see any job openings within financial services.

Professionals working on a contract basis also expect their earnings to rise next year, says the study, with 61.4 per cent of those surveyed anticipating a pay rise in 2010. But money is not the only consideration for contractors, according to the research. Only 45 per cent of professionals said salary was their most important criteria when choosing a contract.

IT contractors appear to be less nervous about the prospect of being out of work and are focused on developing their skills within their next contract.

To ensure you use Linked In to its full advantage, revise your profile regularly by updating information on a new role, an assignment or maybe an area of interest. To help develop your own profile, look at other peoples profiles, the layout, tone etc. As you would when you write a CV, keep it brief but informative. Engage in discussion with your current connections using LinkedIn. Search for people you know, a former colleague or classmate etc and ‘Request an Introduction’. These people may help you find your new contract. Always ask past employers, previous colleagues for a reference. Any potential clients that view your profile are more likely to approach you if you have references on your profile.

To expand your network, join groups on Linked In that relate to you, your interests and your skill-set. By joining groups that for example are dedicated the contractors, you may find there are potential clients also in that group. By engaging in group discussions, you can raise your profile and reach potential clients. You may be able to share advice with other contractors, find new ways of sourcing contracts or keep up to date with the contractor marketplace. Ensure you set up email alerts which will inform you of current discussions, and get involved.

Let other people know you are using Linked In. Add it to your email signature and business cards so people have the opportunity to view your profile but please do not disclose your contact details on your public Linked In profile page. You can view my Linked In profile by clicking here.

It’s now time to enter into the new era of networking.

Contractors have been advised to now use this website portal to search for government contracts.

The move follows recommendations in the Glover Review of November 2008, which showed that many public sector buyers were missing out on savings as too few small-to-medium enterprises could access the contracts.

Economic secretary to the Treasury, Ian Pearson, stated; “Small and medium sized businesses are a crucial part of the UK economy and in these challenging times it is essential that we support them in as many ways as possible. By introducing a free to use national search service we are helping to create a level playing field on which small to medium enterprises (SMEs) can compete with their larger counterparts. This will realise benefits for SMEs, the economy as a whole, and help drive further innovation in public services.”

Matt Goodman, a policy representative for the Forum for Private Business (FPB) said that this new measure should help save more small firms from closure and provide a catalyst for economic recovery.

By 2010, the government aims to advertise all contract opportunities through one, free online web portal.