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How to navigate the changing contractor market
How to Navigate the Changing Contractor Market: Key Insights for Hiring Managers
By Sarah Hanna, Contract Specialist | Insurance at Pioneer Search
As we continue to see shifts in the contractor market, I’ve been gathering valuable insights directly from my contractor network. The feedback is clear: while contractors remain confident, their expectations are evolving, and hiring managers must adapt to stay competitive.
Here’s a breakdown of the trends I’m seeing, along with actionable advice for businesses looking to attract and retain top contractor talent.
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Contractor Expectations: What’s Driving Their Decisions?
From the recent polls, it’s evident that several factors are influencing contractor decisions when choosing a new role.
Here are some of the key trends:
Flexibility is king
50% of contractors say remote/flexible working is the most important factor when considering a new contract. Flexibility has gone from being a “nice-to-have” to a fundamental part of a contractor’s decision-making process. If you’re not offering remote or hybrid options, you could be losing out on valuable talent. Consider how you can offer more flexibility in your roles to remain competitive in the market.
Day rates remain a priority
Despite the growing importance of flexibility, 38% of contractors are still prioritising day rates. The increasing cost of living and market conditions mean contractors are expecting more for their expertise. If your rates aren’t in line with industry standards, it could deter high-quality contractors from considering your roles. Make sure you’re offering competitive rates, or risk losing out to companies who are.
25% of contractors are open to shorter contracts – but it’s not always their first choice
A quarter of contractors say they’re open to shorter-term roles, but this flexibility is often driven by market volatility rather than preference. Many still value longer engagements where available. For hiring managers, this is a prompt to be clear about contract duration and potential for extension. Even short contracts can attract strong talent when expectations and future possibilities are communicated well.
Project scope and tech stack matter
Contractors want to work on interesting projects, especially those involving cutting-edge technology. 8% of contractors mentioned project scope and tech stack as a key priority. If you’re hiring for roles that involve niche skills or modern technologies, make sure to highlight these aspects during the hiring process. Offering challenging, tech-forward projects can be a big draw for top talent.
Contract length: A lesser concern
Only 5% of contractors listed contract length as a top priority. While stability can still be a factor for some, many are more focused on flexibility, rates, and project quality. Be upfront about contract terms and open to discussing options-clear expectations will help you align with the right candidates.
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What does this mean for Hiring Managers?
As contractors weigh their options, it’s clear that flexibility is the most important factor. Hiring managers need to prioritise remote work options, competitive rates, and varied project scopes to stand out in this competitive market.
Here’s how you can respond strategically:
Lead with flexibility - it's the new baseline
Remote or hybrid options aren’t just a perk anymore-they're a dealbreaker for half the contractor market. If you're still defaulting to on-site roles, you're limiting your talent pool. Build flexibility into your offering from day one and shout about it in your job briefs.
Takeaway: Candidates are choosing roles based on lifestyle fit. Flexibility helps you win talent without raising costs.
Use benchmarking to stay competitive
Rates still carry weight, especially in a volatile economy. But guessing or going off outdated figures won’t cut it. Use salary survey data and real-time market benchmarks to ensure you're aligning your offer with current expectations-and standing out for the right reasons.
Takeaway: We can support you with up-to-date rate benchmarking, so you don’t lose out to competitors offering more informed packages.
Don’t underestimate the power of a strong project
Contractors want more than just a pay-check, they’re looking for projects that keep their skills sharp and their CV strong. Roles involving transformation, regulatory change, or emerging tech are a huge draw.
Takeaway: Sell the “why” behind the role. A strong brief with project context can be as powerful as the rate itself.
Think short-term, plan long-term
25% of contractors are open to shorter-term contracts-but many want clarity on what comes next. Be transparent about timelines, project phases, and possible extensions. That clarity builds trust.
Takeaway: Short-term contracts are fine-as long as expectations are managed. Communicate the roadmap, not just the role.
Partner with someone who has the data
Contractor hiring is fast-moving, and getting it right takes more than instinct. I support hiring managers with live insights on rates, market availability, and contractor expectations-so you're not left guessing.
Takeaway: I can help you shape a hiring strategy that’s grounded in real market data-saving you time, money, and hassle.
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Why this matters
The contractor market is shifting-fast. Flexibility, fair pay, and meaningful work are no longer negotiable; they’re expected. Contractors know their worth, and they’re
making sharp, informed choices about where they work. If you’re not adapting to these expectations, you risk missing out on top-tier talent.
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Next steps
Whether you’re reviewing your current contractor offering or planning to grow your team, I can help. From live rate benchmarking and market insight to sourcing specialist talent at speed, I support hiring managers across the Specialty Insurance sector in making smart, informed hiring decisions:
Tel: 0203 838 6959
Email: sarah@pioneer-search.com