Research from 1st Formations finds that many small and medium-sized enterprises are looking to reduce overhead expenses linked to full-time staff and access a larger talent pool.
By Maggie Mancini
Small business owners are seeking to hire more freelance than permanent staff amid changing workplace policies and economic uncertainty, according to a new study from 1st Formations, a leading U.K. company formation agent. This comes as government data has revealed that 99.8% of businesses in the U.K. are made up of small and medium-sized enterprises (SMEs). Â
Over half (53%) of small businesses are looking to hire staff on a contractor or freelancer basis, while just one in five (21%) plan to hire staff permanently. Hiring freelancers lowers the overhead expenses linked to full-time staff, including benefits, workspace, and necessary equipment. This trend reflects current economic uncertainty and the need for businesses to access a wider talent pool without geographical constraints amid skills shortages. Â
Further, one in 10 (13%) SMEs are planning to hire staff temporarily. This was followed by hiring staff on a zero-hours contract (9%) and at the apprentice level (4%). Â
Taking a closer look at workplace policies, many small businesses are continuing to implement a fully remote working policy, with over two in five (43%) allowing their staff to work from home full-time. By comparison, 39% are opting for a hybrid set-up with two or three days per week in the office, and just 18% are implementing a full-time return-to-office policy. Â
