BRIEFING - Firm foundations - Understanding why employers use flexible contracts - Hannah Slaughter

The right side of Figure 5, by contrast, of those medium and large businesses is weighted according to the share of that are more likely to hire workers employment that different types of on flexible contracts. [...] For each contract type we consider in this note, the median employer used that contract type for less than 10 per cent of their workforce (and in the case of ZHCs and casual workers, less than 5 per cent).26 FIGURE 6: Where flexible contracts are used, they usually make up a relatively small share of the workforce Proportion of employers using different forms of flexible contract, by share of thei. [...] But the nature of demand for their products or services was the most important factor identified by employers using flexible contracts, with one-half (51 per cent) of firms saying the nature of their demand had influenced their decision and one-quarter (24 per cent) considering it to be the most important factor.31 29 L Murphy, Constrained choices: Understanding the prevalence of part-time work am. [...] 40 In general, firms have less incentive to offer training (other than that which is necessary to do the job) to temporary workers compared to permanent workers, given that the firm will have less time to benefit from the training – although the extent to which this is the case depends on the cost of the training and the benefits of the training. [...] Resolution Foundation Firm foundations | Understanding why employers use flexible contracts 28 FIGURE 19: More firms plan to increase their use of flexible contracts in the future than plan to decrease them Proportion of employers reporting expected changes in the share of their workforce on flexible contracts over the next five years, by contract type: UK, April 2024 Variable hours; affects pay 2.