UK companies are risking future growth plans by focusing on short-term staff instead of longer term contracts or hiring permanent employees.

This is the claim from a Reading based IT recruitment firm, GCS Recruitment Services.

Kevin Logan, head of business development at the firm said: “Although the economic outlook has been steadily improving, many companies are still reluctant to commit to staff by giving them lengthy contracts or permanent positions.”

This says Logan is a ‘false economy’.

“Short-term contracts don’t count in the loyalty stakes and this may even mean a contractor going directly to a competitor unless they are offered lengthier placement terms.”

Employers may, however, start to look at temporary workers in a different light altogether.

Last week, HRZone reported that Euro MPs are close to voting on the EU Agency Workers Directive. If passed this new law will give temporary staff the same rights as permanent workers after just six weeks employment.

The Chartered Institute of Personnel and Development told us that the directive would ‘seriously damage’ the temping market.