The Real Picture Of Contracting: High Rewards, But Not Without Risks
STEM professionals are drawn to contracting for the autonomy, flexibility and earning power. But for many, the trade-offs are substantial and sometimes deal-breaking.
Read on to find out what contractors want and what employers can do to attract them...
STEM professionals are drawn to contracting for the autonomy, flexibility and earning power. But for many, the trade-offs are substantial and sometimes deal-breaking.
Read on to find out what contractors want and what employers can do to attract them...
Concerns around cash flow go beyond invoicing delays — they reflect a more complex challenge...
of contractors earning £500+ a day wait more than four weeks to secure their next role*
*(Source: IIM, 2024)
Unpredictable income is a deeper issue than just slow payment
For many contractors, gaps between assignments are common. These delays, paired with downtime between assignments can make contracting financially unstable.
What employers can do
To keep contractor talent engaged, especially if upcoming legislation makes conditions tougher, employers may need to rethink how they operate. This could include:
Faster time to offer and onboarding
A form of notice period
More flexible payment terms for independent contractor
Faster time to offer and onboarding
A form of notice period
More flexible payment terms for independent contractor
These steps won’t just help ease the financial pressure they could also enhance your reputation as a contractor-friendly employer.
Understand what matters, and tailor your offer accordingly
The perceived benefits of contracting vary widely by demographic, career stage, and role type, and the standout drivers aren’t always what you might expect. For many, holiday pay and health insurance are now more appealing than traditional markers like job stability.
This shift presents an opportunity. By understanding what different groups value most, and adapting your offer where possible employers can create more compelling propositions for the contractors they want to engage...
Despite common perceptions, financial control (e.g. tax benefits) was cited as a key benefit of contracting by only 19% - making it the least valued upside.
Understand what matters, and tailor your offer accordingly
The perceived benefits of contracting vary widely by demographic, career stage, and role type, and the standout drivers aren’t always what you might expect. For many, holiday pay and health insurance are now more appealing than traditional markers like job stability.
This shift presents an opportunity. By understanding what different groups value most, and adapting your offer where possible employers can create more compelling propositions for the contractors they want to engage...
Despite common perceptions, financial control (e.g. tax benefits) was cited as a key benefit of contracting by only 19% - making it the least valued upside.
The appeal of contracting: what drives different groups?
- Junior/mid-level professionals value skills development
- Middle managers/senior specialists are motivated by earnings
- Line managers/technical leads often prioritise flexible work periods
- Men tend to focus more on earnings potential
- Women place higher value on flexibility
- Younger professionals are more likely to mention a lack of belonging
- Those aged 45+ are more concerned about gaps between assignments
- Engineering Technology and Business Support roles cite a lack of belonging as a key drawback
- Skilled Trades professionals, especially in Rail are more concerned about self-funding skills development
- IT & Digital contractors show heightened concern across all top issues
- Junior/mid-level professionals value skills development
- Middle managers/senior specialists are motivated by earnings
- Line managers/technical leads often prioritise flexible work periods
- Men tend to focus more on earnings potential
- Women place higher value on flexibility
- Younger professionals are more likely to mention a lack of belonging
- Those aged 45+ are more concerned about gaps between assignments
- Engineering Technology and Business Support roles cite a lack of belonging as a key drawback
- Skilled Trades professionals, especially in Rail are more concerned about self-funding skills development
- IT & Digital contractors show heightened concern across all top issues
Tailoring your employer brand to contractor mindsets
Tailoring your employer brand to contractor mindsets
Contractors aren’t a homogenous group and the reasons they might consider switching to permanent work are nuanced. To appeal to this skilled, flexible workforce, employers need a targeted approach.
That means going beyond a generic employer brand and adapting your messaging to connect with different contractor personas whether it’s a mid-level specialist seeking growth, a career returner looking for flexibility, or a seasoned contractor weighing up stability and benefits.
Contractors aren’t a homogenous group and the reasons they might consider switching to permanent work are nuanced. To appeal to this skilled, flexible workforce, employers need a targeted approach.
That means going beyond a generic employer brand and adapting your messaging to connect with different contractor personas whether it’s a mid-level specialist seeking growth, a career returner looking for flexibility, or a seasoned contractor weighing up stability and benefits.
But while the pros and cons of contracting are well understood by those in the thick of it, there’s another layer shaping today’s decisions — and it’s not always within their control. Legislative changes, particularly around IR35, have had a major impact on how attractive, accessible, and viable contract work really is. In the next section, we unpack how these reforms — and the ripple effects of the 2025 Budget are reshaping the contract landscape.
