Contracting is breaking, but it doesn’t have to
Why employers should double down—not drop out—of the contracting conversation
Contracting in the UK STEM market is under pressure.
Legislative reform, inconsistent engagement practices, and shifting candidate expectations have all taken their toll. Today, just 19% of STEM professionals feel optimistic about the future of contracting in their sector—and a worrying 36% feel the opposite.
But here’s the good news: the model isn’t broken beyond repair.
In fact, the flexibility, specialist expertise, and project focus that contracting offers are more relevant than ever. And with a smarter, more human-centred approach, employers can help futureproof it.
The case for optimism: Contracting still works — if it works for people
Contracting isn’t dead. Far from it. But the people who power it are rethinking what they want.
The lines between employee and contractor are fluid.
- 61% of STEM employees are open to contracting
- 72% of contractors can see themselves going permanent within 5 years
- Women are particularly open to movement in both directions
That’s not a sign of failure — it’s an opportunity.
It means you have more talent options than you think. But it also means those options won’t stick around if the model doesn’t evolve.
Why some are stepping away — and what we can do about it
Top reasons contractors reconsider their path?
- Reduced job security (65%)
- Unpredictable income (52%)
- Lack of benefits (41%)
And let’s be honest: IR35 and tax reforms haven’t helped. Since Off-Payroll reforms, STEM professionals reported:
- A net -23% drop in opportunity volume
- A net -25% drop in job security
- A net -22% drop in reward levels
So, what can we do?
Want the full picture?
Download our Voice of the Workforce report to explore detailed findings from 3,000+ STEM contractors — including role-specific insights, market trends, and strategies to stay competitive.
Rethink the value proposition — not just the rate
When we asked STEM professionals why they contract, the top answers weren’t tax breaks (just 19% said that mattered).
Instead, they said:
- High earnings potential (63%)
- Variety of work (51%)
- Flexibility between projects
- Skills development (especially among junior to mid-level specialists)
People want more than a pay check. They want agency, learning, and purpose — just like your perm employees do. And they’ll move where that’s on offer.
A better way forward: Five ways to fix the cracks
Here’s how we keep contracting competitive, compliant, and human.
- Recognise the crossover
Stop treating contractors like a separate species. They want (and deserve) better onboarding, clearer goals, and a sense of inclusion — even if they’re only with you for six months.
- Be transparent about IR35 — early and often
20% of professionals won’t even apply for Inside IR35 roles. If your job ad is vague, you're bleeding candidates before you even begin.
- Modernise your benefits thinking
Could you offer optional benefit bundles to long-term contractors? Or engage them via Employed Consultant Models that include sick pay, pensions, and support?
- Invest in upskilling — for everyone
Younger contractors and skilled trades in particular say they’re concerned about having to self-fund training. Build contractor learning into your project budgets.
- Work with partners who get it
Navigating new rules and talent expectations is tough. We can help with that — from IR35 strategy to creating roles that truly attract top-tier contract talent.
The future is flexible — if we build it that way
STEM professionals are clear: if UK policy continues to worsen, 80% of contractors would consider leaving the country to work elsewhere.
But if contracting conditions improve, 58% of current contractors say they’ll stay — and 38% of open-minded employees would switch.
That’s a big swing — and a big opportunity. One worth fighting for.
Because contracting isn’t just a hiring model. It’s an innovation engine. A resilience strategy. A way to stay nimble when the world gets noisy.
And with the right approach, it’s a win-win.
Need help evolving your contractor strategy?
We work at the heart of STEM talent and can support everything from IR35 and compliance to employer brand and engagement.