Contracting, Compliance and the Talent Crunch: Why Highways is at a Crossroads
Legislation, talent gaps, and tech disruption—you know the drill if you're in highways, transport, or planning. But the challenge is growing urgent like never before.
Our latest Voice of the Workforce survey, with insights from over 3,000 pros, shows highways at a critical juncture. Contractors are rethinking their roles, permanent staff thirst for flexibility, and hiring managers face drying talent pools, especially among fresh talent.
A Workforce in Motion
Fluidity is today's game-changer.
- Two-thirds of perm workers (65%) are thinking about contracting.
- Nearly three-quarters of contractors (72%) might switch to perm soon.
Such movement is a double-edged sword. The lure of choice brings opportunity but also risk. Many are restless, unsure where true balance lies between reward, security, and satisfaction.
The Contracting Conundrum
Contracting still offers big perks. Higher earnings (65%) and diverse projects (50%) are magnets. But 68% of contractors worry about job security, and it's more pronounced in the public sector (72%).
Hence, some contractors lean toward permanence where perks outweigh risks, particularly in the public sector, with strong benefits like:
- Holiday pay (60%)
- Job stability (58%)
- Sick pay (58%)
IR35: Still Making Waves
Off-Payroll (IR35) reforms are a nuisance, notably in the private sector:
- Job opportunities down 33%
- Job quality down 39%
- Job security down 37%
It's squeezing employers. Over a third (36%) of professionals sidestep roles that fall 'inside IR35' roles. If not remedied, nearly 78% of contractors might seek work overseas.
Budget Blues
The 2025 Budget's no savior. The private sector expects a 33% contractor demand drop. The public sector is gloomy too (net: -23%). While just 13% would go perm due to tax changes alone, that's a sizable chunk poised to leave.
Early Talent: The Bigger Problem?
Highways folks aren’t fixated on AI; they're troubled by a scarcity of young talent.
More than a third (35%) view the lack of youth as the greatest threat—outweighing economic woes, politics, or even AI scares.
Yet, highways workers lead STEM fields in AI job anxiety:
- 3% believe their job will vanish
- 12% think their job's at risk
This fear further complicates attracting new talent.
What Needs to Happen Next?
The highways, transport, and planning sector is at a breaking point: seasoned contractors dwindling, youthful recruits scarce.
To keep flagship infrastructure projects afloat—and achieve the UK's greener, smarter transport targets—we need:
- Clearer guidance on IR35 status of roles
- Smarter policy shifts and tax legislations
- Robust industry-government collaboration
Without these, the talent shortage will worsen, stalling the UK’s infrastructure dreams.
Sam Forster, Director of Highways, says: "Facing these challenges head-on with proactive solutions is the only way we keep our infrastructure future-ready and resilient."
Ready to navigate the crossroads? Submit your vacancy, and let's find the solutions together.