The CIPD's Spring 2026 Labour Market Outlook, published on 18 May 2026, found that 58% of employers rank cost management as their top priority this quarter, ahead of productivity and market share. The wider market is soft: ONS figures published on 18 June 2026 put the UK unemployment rate at 4.9%, up 0.3 points on the year, with the employment rate flat at 75.0%.
In that environment, committing to permanent headcount for demand you cannot yet forecast is the risk, not the safe option. Temporary staffing is how a business adds capacity without adding fixed cost, and used deliberately, it is a workforce planning tool rather than a last resort.
The market is already moving this way
The CIPD's Winter 2025/26 Labour Market Outlook, published on 16 February 2026, found that more than a third of employers, 37%, plan to hire fewer permanent staff in response to Employment Rights Act reforms. The CIPD notes the likely consequence is that employers rely more heavily on temporary workers and contractors to avoid the rising costs associated with permanent recruitment.
Whatever view you take of that shift, it means the flexible workforce is growing, and the competition for capable temporary staff is growing with it.
What temporary staffing is good for
Flexible staffing earns its place when it is matched to a specific need rather than used to plug a gap indefinitely. The situations where it works best are consistent:
· Covering maternity, paternity and long-term sick leave without leaving a team short.
· Handling a project spike or a seasonal peak that does not justify a permanent hire.
· Testing whether a role is needed as a permanent position before committing to one.
· Bridging a gap while you recruit properly for a permanent hire, so the work does not stall.
Office and business support roles suit this model well, because an experienced administrator, finance assistant or customer service advisor can be productive within days rather than months.
Where flexible staffing goes wrong
The model fails when it is used without a plan. Temporary staff brought in as a permanent fix, with no decision ever made about the underlying role, tend to leave for permanent work elsewhere. Poor onboarding is the other common error: a temporary worker given no context and no system access never reaches the productivity that justified the hire.
Treated as disposable, temporary staff behave accordingly. Treated as part of the team for the duration of the assignment, they deliver.
Getting the workforce planning right
The employers who use temporary staffing well plan for it in advance. That means identifying which functions have predictable peaks, deciding ahead of time what stays permanent and what flexes, and establishing a supplier relationship before the need is urgent.
The six-week scramble to find cover after someone resigns is where flexible staffing gets a bad name. Arranged in advance, it is one of the more reliable ways to protect delivery through an uncertain year.
Flexibility is a strategy, not a stopgap
A soft labour market and rising employment costs have made permanent hiring a bigger commitment than it was two years ago. Temporary staffing lets you match capacity to demand, protect your permanent team from overload, and keep options open while conditions stay unsettled.
If you want to build flexibility into your workforce planning, our temporary and flexible staffing service sets out how we can help. Contact us to talk through the cover you need.
