Recruitment provider, Guidant Global, has said that businesses must redirect resources to secure the best contingent workers, such as contractors, or risk losing out to their competitors in a ‘talent-scarce market’.

The call to focus more on the needs of contractors has been made as new figures show that a greater number of professionals chose to work outside of traditional PAYE arrangements during the last year.

Despite concerns over legislative change, such as IR35, data from Companies House show that around 14 per cent of UK workers are now self-employed and that in the last 12 months new company registrations increased by 21 per cent.

Guidant Global said that the acute skills shortage has led to a market where candidates have greater choice than ever before about where to take their talents.

There is a growing competition for skills across a wide range of sectors and the use of temporary workers is becoming more important for many businesses’ short-, medium- and long-term strategies, which is leading to greater pay and incentives in a drive for retention.

Simon Blockley, CEO of Guidant Global, said: “The age when non-permanent workers were viewed as an expendable or replaceable commodity is now well and truly over. Today, HR strategists realise that temporary workers are an important part of their organisation’s long-term talent strategy – and retaining in-demand skills in a talent-scarce market is crucial.

“The UK’s contingent workforce is growing rapidly. Trends that were already evident in 2019 have accelerated, and advanced workforce plans now typically include gig workers, independent contractors, freelancers, and project-based workers as well as permanent staff.

“In order to ensure these workers stick around for as long as they are required – and perform to the best of their ability while they are in situ – organisations must actively engage these individuals. While retention strategies may differ slightly from those applied to full-time employees, the principles remain the same. Their experience should be one of support, openness and transparency.

“Businesses that ignore this important segment of the workforce risk losing access to valuable skills, while simultaneously wasting resources in an effort to repeatedly refill the same posts.”