WorkJam has warned that employers are relying too heavily on temporary hiring as they contend with rising costs and economic uncertainty, arguing that the approach could leave organisations exposed as employment reforms draw closer.
Mark Williams, speaking for the workforce software company, said businesses were using temporary roles to manage short-term pressure but risked creating wider problems in compliance, retention and workforce planning if that became a long-term habit.
The warning comes as employers weigh higher labour costs against uncertain trading conditions and look for ways to keep staffing flexible. Temporary recruitment has risen in that environment, according to figures WorkJam cited from KPMG and the Recruitment & Employment Confederation.
Williams said the shift was understandable but may not hold up as regulation tightens and operating conditions remain unstable.
“The strong increase in temporary hiring reported by KPMG and the Recruitment & Employment Confederation is not surprising. Businesses are feeling the burden of rising employment costs, ongoing economic volatility and increasing regulatory complexity.
Temporary roles can offer organisations flexibility to respond to changing demand while managing short-term risk. However, heavy reliance on temporary hiring may prove less sustainable over time, particularly as tighter compliance requirements, potential reforms to zero-hours contracts and ongoing geopolitical uncertainty begin to take effect.
Our recent survey at the Retail Technology Show found that only 25.2% of retailers are actively making changes in response to the Employment Rights Bill, highlighting a clear gap between awareness of workforce reform and operational readiness. While many businesses recognise that regulation is changing, fewer have adapted the frontline systems and processes needed to support a more structured and compliant approach to workforce flexibility.
The challenge for employers is to create structured flexibility that works for both the business and its workforce. Employees increasingly expect greater transparency around scheduling, earnings and working patterns, while organisations still need the ability to respond efficiently to fluctuating operational demands.
At the same time, entry-level and temporary roles have traditionally been among the most important pathways into employment for young people. With youth unemployment reaching record highs, their importance is even more pronounced, providing a first step into the labour market, early responsibility and the opportunity to develop skills and confidence. The challenge for retailers, therefore, is to strike the right balance between operational efficiency and a genuine commitment to building sustainable pathways into long-term careers for the next generation.”
Readiness gap
The clearest data point in WorkJam's argument is its finding that only 25.2% of retailers are actively making changes in response to the Employment Rights Bill. That suggests many employers are aware labour rules may shift but have yet to change the systems they use to schedule, train and manage frontline staff.
For retailers and other labour-intensive sectors, the issue goes beyond the immediate cost of adding permanent workers. A workforce made up of large numbers of temporary staff can be harder to train consistently, more difficult to schedule around changing demand and more exposed to gaps in record-keeping and oversight if processes remain fragmented.
WorkJam argues those risks become sharper when businesses depend on manual administration or separate tools for rostering, communication and training. In that setting, a short-term staffing fix can create longer-term operational strain, especially when policy and compliance requirements are shifting.
Frontline systems
Williams said employers should respond by building what he described as structured flexibility, with more formal workforce processes and clearer visibility over who is working, what training they have completed and how managers deploy labour across sites and shifts.
He pointed to frontline operations platforms as one route to that approach, particularly in sectors with younger workforces and high staff turnover.
“Frontline operations platforms simplify and automate many of the operational processes associated with hiring and employment. By bringing scheduling, communication, learning and task management into a single platform, businesses can onboard employees more quickly, provide continuous on-the-job training and give managers greater visibility over workforce capability and availability.
For younger or less experienced workers entering frontline industries for the first time, this is particularly important. This generation is digitally native, so providing workplace apps they can access on their phones, with clear guidance, can help them become productive and confident more quickly while also reducing the administrative burden on managers.
The reality is that, no matter what pressures businesses are feeling right now, temporary hiring will only address immediate uncertainty. Businesses risk becoming damagingly misaligned with the direction of employment regulation and broader economic conditions.”
The comments also highlight a broader labour market tension. Temporary and entry-level roles remain an important route into work for younger people, yet employers face pressure to control costs while preparing for stricter oversight of hours, contracts and working conditions.
That leaves businesses balancing flexibility against the need for better planning, stronger retention and clearer compliance processes across frontline teams. WorkJam's warning is that temporary hiring may ease immediate strain, but it does not remove the need to rebuild workforce systems before regulation and market conditions shift further.