Sofia Khaira is a distinguished specialist in diversity, equity, and inclusion (DEI) with a profound commitment to reshaping how businesses manage and develop their talent. As an expert in the HR landscape, she focuses on building equitable work environments that bridge the gap between candidate potential and organizational needs. With the labor market currently facing a unique set of challenges—marked by a decrease in payrolled employees despite falling unemployment rates—Sofia’s insights are particularly timely. She advocates for a shift in perspective, viewing temporary employment not merely as a stopgap, but as a strategic engine for social mobility and career longevity.
In this discussion, we explore the evolving dynamics of the UK labor market, specifically how the “temp-to-perm” model serves as a vital pathway for young professionals and those re-entering the workforce. We examine the myths surrounding job security, the practical benefits of flexible employment for individuals with chronic health conditions, and how businesses can use temporary roles to mitigate risk during periods of economic and geopolitical uncertainty.
Recent data shows a decline in payrolled employees even as unemployment rates appear to drop. How does this discrepancy impact entry-level opportunities for young people, and what specific strategies should they use to navigate a labor market that seems increasingly restrictive?
The current data highlights a complex paradox; while unemployment fell from 5.2% to 4.9%, the number of payrolled employees dropped by 74,000 between February 2025 and 2026. This contraction often hits young people the hardest as traditional entry-level doors begin to close or become hyper-competitive. To navigate this, I encourage young candidates to break the mold of searching exclusively for permanent roles from the outset and instead embrace temporary assignments as a “guaranteed step” onto the employment ladder. By entering a business through a temporary contract, a young professional can bypass the rigid barriers of permanent hiring and prove their worth through on-the-ground performance. It is about shifting the focus from finding the “perfect” contract to finding the right environment where they can demonstrate their energy and potential.
Temporary roles are frequently dismissed as unstable or secondary options. How can a motivated candidate use a short-term assignment as a strategic gateway to a permanent position, and what specific milestones should they hit to prove their long-term value to an employer?
The idea that temporary work is unstable is a myth we are actively challenging because these roles are powerful talent pipelines. A motivated candidate should treat every temporary assignment as an extended interview where they can evidence their professionalism, resilience, and commercial impact in real-time. Key milestones include mastering sector-specific expertise within the first few weeks and consistently meeting performance targets that contribute to the company’s bottom line. For instance, someone like our colleague Jan Stroud used her time as a temp to show her specialist expertise, eventually securing a permanent 30-hour contract. Success in these roles comes down to showing adaptability and making yourself an “integral member” of the team through sustained performance and a clear commitment to the company’s goals.
For professionals managing chronic health conditions or re-entering the workforce later in life, traditional hiring can feel inaccessible. How do flexible employment models facilitate better workplace inclusion, and what practical steps can managers take to ensure they are evaluating talent based on results rather than perceived limitations?
Flexible and temporary employment models are essential tools for inclusion because they allow individuals to manage personal challenges—such as an MS diagnosis or age-related transitions—while remaining economically active. These models provide a structured yet flexible entry point that focuses on what a person can do rather than the limitations a traditional 9-to-5 might impose. Managers can facilitate this by adopting “Service Excellence” models that prioritize measurable results and output over physical presence or conventional schedules. The practical step for any leader is to evaluate a contributor’s value through their “measurable results” and “specialist expertise” over a sustained period. When an organization is willing to recognize contribution irrespective of age or disability, they tap into a pool of loyal, highly skilled talent that others might overlook.
Domestic and geopolitical uncertainty often causes businesses to hesitate on permanent hires. Why is the “temp-to-perm” model becoming a preferred method for reducing hiring risk, and how does this arrangement benefit both the company’s bottom line and the employee’s career progression?
In an era where geopolitical and economic forecasts are constantly “buffeting” the market, businesses are understandably cautious about long-term financial commitments. The “temp-to-perm” model bridges this gap by offering a “reduced hiring risk” where the company can evaluate a “right fit” candidate before committing to a permanent contract. For the employer, this protects the bottom line by ensuring that permanent headcount is only increased for proven performers who show genuine potential. For the employee, it provides an immediate income and a foot in the door at companies that might otherwise have a hiring freeze. It creates a win-win scenario where the employee builds their industry network and the company builds a robust, de-risked workforce.
Many job seekers prioritize permanent contracts from day one to ensure security. What are the common myths regarding the “uncertainty” of temporary work, and how can candidates leverage these roles to build a more diverse professional network and specialized sector expertise?
The most common myth is that temporary work is always “just temporary” and offers no path to security, yet we see a growing trend of these roles leading swiftly to permanent positions across diverse sectors. In reality, about 5.5% of all employees are currently in temporary positions, and we expect this number to rise significantly throughout 2026 as the market shifts. Candidates can leverage these roles by viewing them as “strategic entry routes” that provide exposure to different corporate cultures and operational styles that a single permanent role might not offer. By moving through different assignments, a worker can build a much broader industry network and acquire “specialized sector expertise” in fields like manufacturing, logistics, or food and drink. This variety actually creates a different kind of security—the security of having a diverse and highly adaptable skillset.
As industries like manufacturing and logistics face fluctuating demand, staffing requirements are shifting. What metrics should businesses use to determine when a temporary contributor has reached the threshold for a permanent contract, and how does this transition affect overall team morale?
In high-demand sectors like logistics and manufacturing, the transition from temp to perm should be dictated by a combination of “sustained performance” and “adaptability” to fluctuating workloads. Businesses should look for “measurable results”—such as efficiency rates or specialized sourcing success—as the primary metrics for conversion. When a temporary worker who has been an “integral member” of the team is finally brought on permanently, it significantly boosts team morale by validating hard work and loyalty. It sends a message to the entire workforce that the company values “real-time value” and is committed to investing in those who contribute to the collective success. This transparency in progression helps foster a culture of meritocracy and inclusion.
What is your forecast for the temporary employment market?
My forecast for the temporary employment market is one of significant growth and structural importance; we anticipate that the 5.5% of the workforce currently in temporary roles will rise considerably as we move through 2026. As domestic and international uncertainties persist, the agility offered by temporary staffing will become the primary “gateway” for both young talent and experienced professionals looking to re-enter the labor market. We will likely see the “temp-to-perm” trend move from being a secondary option to a leading recruitment strategy across the UK. Ultimately, the market will shift toward “adaptable employment practices,” where the focus is on creating social and economic value through flexible, results-oriented work arrangements.
