PAYE Umbrella Contractors in Demand as SMEs Turn to Flexible Workers

Contractors working through umbrella companies are increasingly being snapped up by the UK’s SME sector, as firms endeavour to remain rapidly scalable but still acquire the staff they need to complete essential projects.

That’s according to a new report by Regus, the international officer space supplier. PAYE umbrella contractors and other freelancers have found themselves in much increased demand by SMEs over the last six months, with 49% stating that they will be hiring more freelancers and 39% seeking more remote workers.

Curiously, it is grim economic conditions that appear to have spurred the turn to flexible workers, as firms remain cautious about hiring permanent staff in such economically precarious times. Business confidence amongst SMEs in general has plummeted by 20% since April, and their profitability and revenues have also been dented over the same period.

Firms trading internationally have, however, fared rather better than those trading on domestic markets only: business confidence amongst SMEs with overseas markets remains robust at 88%, whereas their domestic-only counterparts score only 79%. International traders are also more likely to be showing increased profitability than their domestic rivals (30% as opposed to 20%).

Commenting on the report, the Regional Director of Regus, Celia Donne, said “SMEs realise that they must continue investing in growth, so freelance and remote working are becoming increasingly popular solutions to increase headcount while remaining flexible and rapidly scalable. 27% of the employed population in the UK are now deemed to be flexible workers, which illustrates the significant shift that has already taken place in the employment market.”