23rd January 2012

Poor business confidence could boost contractor hiring

The likelihood of employers hiring contractors to pick up workloads could be on the rise as confidence in the economy remains low.

Often in difficult times businesses turn to contractors as an alternative to committing to hiring permanent members of staff that they may not be able to afford for long. And with the latest Voice of Small Business Index from the Federation of Small Businesses (FSB) showing a net balance of 6.5 per cent of small firms planning to lay off workers during the first quarter of 2012, this current period of trouble could follow the trend.

In fact, this is the highest percentage recorded since the survey began. John Walker, national chairman of the FSB, commented: "The beginning of 2012 is beginning to look bleak, with confidence incredibly low and businesses looking to shed staff."

The organisation is keen to see the government take action to improve the situation for small businesses looking to take on staff. One area it is focusing on is for micro firms to be exempt from the extension of the right to request flexible working for all. A complete and simplified reform of both paternity and maternity leave is also being called for.

In light of this, the flexibility of contractors could be tempting to businesses who are in need of additional staff to tackle brief influxes of work.