Financial services companies are choosing temporary and contract staff in a bid to minimise skill shortages in the future, according to recruiting specialist Hays Insurance.

It says a recent salary guide survey has revealed a jump to 20% of the number of temps working across the industry.

Hays Insurance Senior Regional Director Jane McNeil says flexible workforces are not just a way to avoid permanent headcount or cut costs but to tap into a new skill set.

“The key lies in finding the right balance between permanent and temporary employees, because a successful flexible workforce involves more than just a temporary staff member for a particular project – although this has obvious advantages,” she said.

The survey showed that of the 1800 employers interviewed, 20% use temporary and contract staff on a regular basis, 47% for special projects and workloads, and 33% said they only used temps in exceptional circumstances or not at all.

Ms McNeil says flexibility is the key to being able to increase or decrease resources as the needs of the business change.

“Not everyone wants a permanent job, and those candidates attracted to temporary assignments see them as a way to gain a better work-life balance,” she said.