Insights Into the Temp Recruitment Market in London

At the end of 2023 the UK economy officially fell into recession as the cost-of-living crisis began to bite. In response, the UK recruitment market has also contracted. Businesses have dug in and tightened their belts which has led to fewer vacancies and a dip in permanent hiring. Even those employers who remain keen to grow, are facing pressures around wage costs, making it more difficult for them to attract and retain key staff. Because of there being fewer permanent roles out there, there are lots of candidates available in the market who are ready to work. Temp recruitment offers a fantastic way for businesses to access key skills, and support continued growth and success, without the costs and commitments of making a permanent hire. As a result, we’ve found our clients keen to take advantage of buoyant temp recruitment in London.

Where Temps Fit Into the London Recruitment Market

Temporary staff have always played a pivotal role in London’s recruitment market. London attracts skilled candidates from across the UK and the rest of the world, who are looking for short-term roles for a variety of reasons. In times of economic uncertainty, temp recruitment in London is an even more vibrant market.

For candidates, temporary work can be a valuable way to develop their skills and gain new experience. Those who are considering a new career might choose to take a temporary job to test the waters and explore new options. Temporary roles can even be a stepping stone to permanent work. Temp work is also a great choice for candidates with other commitments allowing them to keep their skills sharp while working more flexibly.

Because a slow economy has led to more cautious hiring practices, temp recruitment in London is a popular choice for employers as well. While up to 28% of London firms are planning to offer pay increases in line with inflation in 2024, many businesses are worried that they cannot match salaries despite wanting to retain talent or increase headcount.

For firms that cannot afford to increase salaries hiring temporary staff can be an ideal solution.​ At Australasian Recruitment Company our core specialism of business support recruitment fits naturally into the temp hiring market, so we are perfectly placed to help your business capitalise on the benefits of temp recruitment and find candidates for short-term placements with the skills and expertise you need.

4 Benefits of Using Temporary Staff

Using temporary staff can have real benefits for your business. Temp recruitment in London – particularly when you work in partnership with an agency – is quick and easy. And temp hires can bring a level of flexibility that you just can’t get from permanent staffing. Here are the biggest benefits temporary staffing can bring to your business:

1. Greater Flexibility

   Hiring temporary staff gives you the flexibility to quickly adjust workforce size based on business demands. During busy periods, such as seasonal upticks you can easily bring in extra staff to cover increased workloads, or reduce staffing should levels quieten down maximising efficiency. Temporary staff can also be brought in to help with specific projects allowing you to access key skills as and when you need them.

2. Cost Efficiency

   There is a misconception that temporary staff are costly. In fact, temp recruitment in London can be more cost-effective than hiring permanent staff, especially in the short term. Hiring temps means that you avoid the expenses associated with hiring permanent employees. Generally, temps are paid hourly, and you won’t need to provide any extra benefits you offer to full time staff such as healthcare, or pension plans. This allows you to manage your budget more efficiently, especially during periods of uncertain demand.

3. Access Specialised Skills

   Sometimes you may require niche or specialised skills and experience for specific projects or short-term cover. By hiring temporary staff, you can access a diverse pool of talent for specific needs without committing to a long-term employment contract. This is particularly advantageous when you need hard to find skills for a single project. Temporary staff can also be a way to “try before you buy” when it comes to specialist skills, letting you see if a staff member will be a valuable addition before you make a permanent commitment.

4. Streamlined Recruitment

   Hiring temporary staff is usually quicker and involves less admin than hiring permanent staff – especially if you use an agency recruiter who’ll take on the administrative burden for you. This streamlined process means you can quickly adapt to changes and be more agile in deploying resources during busy periods. So, you can react promptly to market demands and economic uncertainties without compromising on quality or operational efficiency.

For employers aiming to scale up swiftly or address critical roles with efficiency, temporary recruitment is a strategic solution. If you are hiring for business support roles in London, we can help.

At Australasian Recruitment Company we have over 20 years’ experience connecting employers with permanent, temporary and seasonal business support staff they need to meet their goals; we can even help you find agency staff who can start today!