A significant number of UK professionals are contemplating a shift from permanent positions to temporary roles, driven by the pursuit of enhanced flexibility and work-life balance, new research suggests. It reflects, say industry observers, the evolving dynamics of the modern workforce and the growing influence of the gig economy.

Figures compiled by talent solutions provider Robert Walters indicate that 34% of UK professionals are considering temporary roles over permanent ones to achieve greater flexibility in their work arrangements. It’s further amplified by economic factors, with 24% of employees reporting increased workloads due to tighter company budgets. Additionally, 30% are attracted to temporary positions because of the potential for higher earnings.

But uncertainties surrounding take-home pay remain, especially with changes in National Insurance contributions and the transition of PAYE responsibilities to umbrella companies. These financial considerations are crucial for professionals evaluating the viability of temporary employment.

Employers Embrace Workforce Flexibility

The rise of the gig economy has prompted employers to adapt their hiring strategies. Approximately 48% of UK employers plan to hire temporary or contract staff in 2025 to manage specific projects and address skill shortages. This approach offers companies the agility to respond swiftly to market fluctuations without the long-term commitment associated with permanent hires.

Chris Eldridge, CEO of Robert Walters UK & Ireland, said the short-term nature of contract roles allowed for greater agility and quicker response times to market changes and business needs.

“We’re noticing a shifting of values amongst professionals. Work-life balance and flexibility are increasingly prioritised, causing professionals to scope out opportunities in line with these values,” he said. “It’s principally this trend that’s encouraging professionals to take on a contract or temporary role over a permanent one.”

“Although contracting is typically viewed as a riskier option because of the absence of job security, recent high-profile layoffs and unsatisfactory bonus seasons have prompted professionals to reconsider this. Some individuals might opt for contract positions as a temporary fix or a way to enter a specific company, while others may view it as a more long-term career path.”

Eldridge said professionals who opt for contract work develop additional skills and also experience in other areas, and that this can help them with more flexibility and even better pay. He added that “having in-demand skills and varied experience is a crucial bargaining tool when negotiating more from future employers.”

Demand for Specialised Skills

As the demand for temporary roles increases, certain skill sets have become particularly valuable. Industry-specific expertise is highly sought after, with 38% of employers prioritising candidates possessing specialised knowledge relevant to their sector, the research suggests. Soft skills, including adaptability, communication and problem-solving, are also in demand, emphasised by 31% of employers.

The financial sector exemplifies the trend. Research from professional services firm Grant Thornton reveals that 93% of finance leaders in the UK are planning digital transformation projects within the next 12 months, creating opportunities for contractors skilled in stakeholder management and operational risk management. Job advertisements for these contract roles have seen significant growth, with stakeholder management positions increasing by 59% and operational risk management roles by 18%.

Navigating the Evolving Employment Landscape

The shift towards temporary roles signifies a broader transformation in the UK’s employment landscape. Professionals are increasingly valuing flexibility and autonomy, while employers recognise the benefits of an agile workforce capable of adapting to dynamic market demands.

But the transition is not without challenges. Economic pressures, such as increased National Insurance contributions and rising operational costs, have led over 70% of UK hospitality businesses to consider staff reductions. These financial strains underscore the importance of strategic workforce planning and the need for both employers and professionals to navigate the complexities of the evolving job market.

Solutions for a Flexible Future

To address these challenges, experts say several strategies can be considered:

  • Policy Reforms: The UK government has introduced measures to support flexible working arrangements. From April 2024, employees have the right to request flexible working from their first day of employment, with employers required to provide a reasonable explanation for any refusal. These reforms aim to create a more adaptable workforce and accommodate diverse employee needs.
  • Embracing Fractional Leadership: The concept of “fractional twinning,” where experienced professionals offer part-time support to organisations, is gaining traction. This approach allows companies to access specialised skills without the commitment of full-time roles, providing flexibility for both employers and professionals. LinkedIn mentions of fractional leadership grew significantly from 2,000 in 2022 to 110,000 in 2024, indicating a rising trend in this area.
  • Investment in Skill Development: For professionals, engaging in temporary roles offers the opportunity to acquire diverse skills and experiences rapidly. This continuous development enhances employability and positions individuals favourably in a competitive job market.

As the gig economy continues to reshape traditional employment models, both professionals and employers must adapt to the changing landscape. Embracing flexibility, prioritising in-demand skills and understanding the economic factors at play will be essential for success in 2025 and beyond.