Employers getting the most out of ‘silver’ contractors

Jodie Finn

With employers still cautious about taking on permanent staff, a new generation of older, more experienced contractors are reaping the benefits, according to Jodie Finn.

There have been a number of well-documented stories over the past months about the growth of flexible working. And this isn’t entirely surprising. Ten years ago, contracting may have been seen as permanent employment’s weaker relation, but today, the tide has shifted and now a substantial proportion (four in ten) of UK professionals dream of working flexibly.  

This trend, combined with the increasing recognition of the role that over 65s have to play in boosting UK GDP, means we could be on the verge of a new generation of ‘silver contractors’ working beyond the traditional retirement age.

Indeed, in an ever-shrinking world with a globally mobile workforce, contracting seems like a more attractive option than other employment models.  And perhaps the most attractive factor is the ability to work flexibly.  Modern day professionals have a lot on their plate and the chance to improve work/life balance is one that attracts many people to contracting. And for individuals nearing retirement, this is certainly a drawing factor.  The other advantage of moving into contracting is the potential to work on a number of varied assignments, especially for individuals who’ve stayed at a business for a large part of their career.

And it isn’t just beneficial for professionals to work as a contractor; it also aids companies in many cases. Despite the ongoing growth in the UK economy, many organisations are still reticent about increasing headcount and recruiting permanent staff because of the investment it represents. Taking on contractors means there’s no costs associated with permanent headcount increases, potentially aiding the organisation if the market was to take another downturn.

There were a reported 1.65million contractors working in the UK in 2012 and you only have to see the rise in numbers in the two years prior to that (88,353 new contractors) to appreciate the rate at which this type of work is growing. One of the areas we have seen increased demand for talent is logistics. A number of smaller firms have been bought out by the major players meaning that the senior figures at the smaller business will now have to work for another employer near the end of their careers.

Understandably, not all professionals are suited to this and, as a result, many are moving into the contracting arena. Anecdotal evidence suggests that some C-suite level professionals are now working as accounting contractors for a number of their earlier rivals within the sector and are earning the same, if not more, in their new roles. And as the economy continues to strengthen, more and more organisations will be looking to invest in other businesses, which could potentially lead to a wave of M&A activity. And this could have significant consequences for many senior professionals in the field.

The rise of technology is another factor behind the growing numbers of individuals moving into contract work. As distribution processes become automated, fewer staff are required to carry out day-to-day tasks. This has meant that many professionals are being repurposed into more operational positions where they can utilise their experience to analyse and drive for improvement.

More and more businesses are seeing contractors as the way forward and indeed, research from APSCo found that there were 11% more contracting vacancies than permanent ones in 2013. For the senior professional it offers a particularly enticing blend of flexible working, increased pay and the ability to work on varied and interesting projects. As the retirement age increases we expect to see more ‘silver contractors’ flood the market, and they won’t be the only ones.

Jodie Finn is associate director at Venn Group, specialists in temporary and contract recruitment