Contractors on the new agenda for business

Contractors will be among the winners of the biggest root-and-branch reform to the model of business in Britain in more than a decade, the CBI said yesterday.



The employers' group says many companies will operate a smaller core workforce in favour of larger 'flexi-force,' made up of freelancers, consultants and temporary staff.



These individuals will work around the periphery of the organisation but will perform roles which are core to its operation, as and when required, the group said.



For being skilled, and prepared to work flexibly, such temporary workers will be more highly rewarded than their salaried counterparts, who enjoy greater job stability.



But employers' drive towards a more flexible labour force, one of several changes the CBI sees as incoming from the "shock" of recession, will not be without challenges.



It has implications for pension contributions and the ability of 'temps' to secure mortgages, as well as other loans and services, as earnings would be less stable.



It will also have an impact on the UK's perceived weakness in skills quality and availability, as businesses are unlikely to fund training for temporary staff.



As a result, the onus to ensure skills/training is up to date will shift increasingly away from the client/employer, and onto the individual and, potentially, their agent.



"Without the right skills and/or mentality," the CBI said, temporary candidates "will find it increasingly difficult to secure jobs – in some areas, long-term unemployment…will become a major problem."



But for many individuals, the move towards a freelance staffing model will be "mutually beneficial", providing them and businesses with the flexibility they desire.



The group added: "Others will prefer the security and stability of a permanent job, but those skilled individuals who are prepared to work flexibly will get higher rewards."



Alongside staffing, the other models to face an overhaul over the next decade, also as a direct result of the downturn, are bank lending, commercial partnerships/risk and ethics.