Short-term staff can lead to long-term pain

A Reading IT recruitment firm has warned that UK companies are risking future growth plans by focusing on short-term staff instead of longer term contracts or hiring permanent employees.

Over the past two years, the average length of initial contract in the IT sector has dropped from six to three months. Itís a trend which is seen as a high-risk strategy, with many companies failing to recognise the implications behind employing a temporary workforce.

Kevin Logan, head of business development at GCS Recruitment Services, comments: ìAlthough the economic outlook has been steadily improving, many companies are still reluctant to commit to staff by giving them lengthy contracts or permanent positions.

ìWe believe this is a false economy because as soon as staff join on short contracts they start looking around for their next job and the employer risks being left without the essential IT skills he needs. Short-term contracts donít count in the loyalty stakes and this may even mean a contractor going directly to a competitor unless he is offered lengthier placement terms.î

With the recent economic downturn now behind most IT companies, employment figures within the industry have increased steadily in the past 12 months and the ratio of contractors placed by GCS this year in comparison to permanent staff has increased accordingly.

In the last twelve months, GCS has experienced its most successful period ever, placing more than 1,000 candidates in a variety of permanent and temporary IT roles across a wide cross-section of blue chip global and national companies.