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With mounting economic pressure and rising employment costs, many organisations are reevaluating how they source talent. In this climate, interim and contract recruitment have emerged as strategic and cost-effective alternatives to permanent hiring. But when does it really make financial sense to hire contractors or interim professionals over permanent staff?
Explore the financial advantages of contract and interim hiring, when it should be considered over permanent recruitment, and how to benchmark day rates effectively using our industry-specific salary guides.
Nearly three-quarters of organisations expect increasing employment costs to negatively impact their ongoing operations. Many are choosing to pause hiring but are not reducing headcount either. This is where interim recruitment and temporary staffing solutions offer a flexible middle ground.
The need to "do more with less" is a recurring theme across all industries. With no sign of permanent headcount expansions for many organisations, interim management roles and contract hiring can provide critical cover, backfill, or project delivery without the long-term financial commitment.
Contract recruitment allows businesses to:
This explains why interim and contract recruitment levels have proven remarkably resilient. In 2025, contract placements in the UK rose by 27% year-on-year, and this trend is mirrored in the US, where interim and freelance employment continues to grow.
Hiring a contractor on a short-term basis can often be more cost-effective than recruiting a permanent employee, particularly when:
Permanent staff often come with broader costs beyond base salary. Benefits, bonuses, onboarding, equipment, training, and redundancy risk can significantly increase the total cost of hire. In contrast, interim recruitment enables you to pay for what you need, when you need it.
Our latest salary data shows niche skillsets are in short supply and high demand. Demand is particularly strong for experienced professionals in areas such as tax, treasury, building safety, and regulatory compliance, with competition intensifying as organisations look to secure proven expertise without increasing permanent headcount.
Contract recruitment offers a practical and efficient route to access in-demand talent across critical areas. This includes AI and machine learning specialists, tax and treasury professionals within Finance, building safety experts in the Housing sector, particularly those focused on damp and mould compliance, risk, audit and compliance professionals in Banking, and cyber, data, and digital transformation leads within the public sector.
These skillsets are often project-led and benefit from interim recruitment models that provide immediate impact without locking into a long-term cost base. Interim professionals also offer valuable knowledge transfer opportunities to your permanent teams, helping upskill internal capability as they deliver.
While contract recruitment can be financially beneficial, organisations must understand the implications of IR35 contractor rules. These regulations determine whether a contractor should be classified as self-employed or effectively operating as an employee. If misclassified, businesses can be liable for additional tax and National Insurance costs. (More information on inside/outside classification below).
Despite these complexities, the value of specialist contractors remains high. The key is to conduct clear IR35 assessments to help ensure transparency in working arrangements. Goodman Masson’s contract recruitment experts work closely with you to navigate IR35 risks and ensure full compliance.
One of the most common questions we receive is: "How does contract recruitment work when it comes to pay?"
Setting the right day rate is critical to securing top-tier interim talent while ensuring cost-effectiveness. Several factors influence what contractors can command in the market, and understanding these variables is essential when using a day rate calculator or assessing offers.
Key considerations when benchmarking:
Regularly reviewing your contract rates is also important. Rates for highly qualified or niche contractors can fluctuate significantly with market demand. Our Salary Guides include regional and sector-specific day rates across Finance and Accounting, Banking & Financial Services, Technology & Change, Housing and more.
Use our Salary Guides to help benchmark current rates for your sector and role type.
In an uncertain economy, contract recruitment offers a strategic advantage. By reducing overheads and time to hire, while maintaining access to quality talent, it can significantly reduce long-term costs when deployed strategically.
Whether it's leading a transformation project, bringing in rare expertise, or helping you bridge a gap in your succession plan, interim and contract professionals deliver flexibility and focus.
Goodman Masson is here to help. Our specialist consultants provide expert contract recruitment support across Finance, Banking, Tech & Change, Housing, and more.
Explore current day rates and insights by sector or for tailored advice, contact our team today and let’s find the right contract solution for your workforce needs.
Discover when interim or contract recruitment is more cost-effective than permanent hiring and learn how to benchmark rates with our industry specific salary guides.
