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Contracting sector faces challenge of proving its worth to private sector clients

Contractors tend to be viewed by private sector clients as providing a cost-saving benefit, but those same clients often miss the fact that contractors offer valuable new skills. That’s according to new research by recruiter Hays.

ContractorCalculator CEO Dave Chaplin sees this finding as opening up fresh marketing opportunities for the contracting sector. “The private sector needs to innovate to successfully compete, so showing them that contractors offer a unique opportunity to cost-effectively tap into high-end and cutting-edge skills could lead to many new contracts opening up.”

Public sector recognises contractors’ true worth

The results of the survey highlighted marked differences between the private and public sectors’ understanding of the benefits of using contractors. Just over 30% of clients in the private sector report that the greatest motivation for using temporary, contract or interim workers is to avoid permanent headcount, whereas the greatest motivation for public sector clients is to access specific skill sets.

In fact, Hays’ research shows that 44% of public sector clients see contractors as essential to the success of their organisation, whereas only a third of private sector clients agree, seeing the flexible workforce mainly as an option for cost reduction.

According to Hays Director Charles Logan, private sector clients are missing out: “As we start to see signs of an improvement in the economy, a flexible workforce will be essential in allowing businesses to grow, without the commitment of a permanent member of staff. The private sector could be missing the opportunity to use a flexible workforce as a key part of their plans, to take better advantage of the upturn and drive recovery.”

Contractors should sell themselves better

However Chaplin, a former IT contractor himself, explains that contractors must share the responsibility and market their unique skills as hard as their flexibility. “Many of the highest-skilled workers in the UK choose contracting because it allows them to avoid becoming part of the management in large organisations and to focus on what they do best,” he says. “But the most technically qualified contractors are not always the best at marketing and selling their skills. That needs to change.”

The private sector could be missing the opportunity to use a flexible workforce as a key part of their plans, to take better advantage of the upturn and drive recovery

Charles Logan, Hays

Logan also points out the need for contractors to shift their marketing to the private sector, whilst not ignoring ongoing opportunities in the public sector. “As we move forward and the public sector is faced with major transformation, talented professionals will be needed to manage this period of change. In particular, skills will be required in change and project management, budgetary control, procurement, HR transformation and outsourcing.”

Logan concludes: “As transformation takes effect and the line between the two sectors continues to blur, a flexible workforce will be a key component of any successful organisation.”

Published: Wednesday, 7 July 2010

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