Why More Organisations Are Hiring Finance Contractors in Today’s Market | Oyster

Shifting regulations, restructuring, and economic uncertainty are driving many UK organisations to rethink how they resource their teams.

The latest APSCo data (2025) shows an 11% year-on-year increase in temporary and contract roles, reflecting a cautious but active hiring market.

As more professionals choose flexible, project-based work, employers face both a challenge and an opportunity: attracting the expertise they need, when they need it.

Here’s why organisations are turning to interim hires:

1. Quick Access to High-Calibre Professionals 

Permanent recruitment processes take time, often months from the moment a senior leader hands in their notice.

Take the example of a Director of Finance leaving a permanent role. With a three-month notice period, the replacement process typically looks like this:

• Drafting and approving a request to recruit
   
• Writing and posting an advert for at least four weeks
   
• Conducting interviews and shortlisting
   
• Making an offer and waiting through another 12-week notice period
   

Even in the best-case scenario, this takes seven to eight weeks before an offer is made, and another three months before a new hire starts. If the advert needs reposting, that timeline stretches further.

Interim professionals bridge that gap. They can step in quickly to maintain stability, manage workloads, and even support handovers once a permanent appointment is made.

According to the CIPD Labour Market Outlook: Summer 2025, employers continue to report longer permanent hiring times and sustained demand for contract professionals, particularly across public and professional services.

2. Control and Flexibility

Contract hires allow employers to tailor engagements to specific projects, goals, or budgets. This agility is ideal for organisations working through restructures, audits, or transformation programmes.

For example, we recently placed a specialist on a short-term contract to support IFRS implementation, and several others assisting councils with MTFS/MTFP reviews or clearing accounts backlogs.

In niche areas such as the Collection Fund, our contractors have provided both technical support and upskilling for permanent staff, often on a part-time or project-specific basis.

From the talent side, flexibility also reflects how professionals want to work: with more control over their time, workload, and development. For employers, that alignment attracts high-quality contractors motivated by autonomy, expertise, and measurable outcomes.

We’ve even seen contractors return to the same councils year after year for short-term assignments, typically three to six months, offering continuity and cost savings compared to full-time hires.

3. Cost-Effective Resourcing

Contractors offer a leaner, more predictable cost model. Employers save on:

• Employer National Insurance contributions (13.8%–15% from April 2025)
   
• Pension contributions (typically 6–12% depending on scheme)
   
• Holiday, sick pay, and bonuses tied to permanent roles

You only pay for hours worked, keeping spend closely aligned with project delivery.

4. Breadth of Experience

Having worked across multiple organisations, contractors bring insight from a range of systems, leadership styles, and financial models; experience that often leads to long-term improvements.

In Local Government Reorganisation (LGR), where councils are merging or restructuring, that breadth of exposure is invaluable.

Finance Focus

• Deep understanding of diverse operating models – Interims adapt quickly to different budgeting, governance, and service delivery approaches.
   
• Complex funding experience – They’re used to navigating grants, capital projects, and revenue streams across varied authorities.
   
• Change management capability – Experience handling restructures, budget pressures, and regulatory shifts makes them steady under pressure.
   
• Stakeholder management – Exposure to multiple political and cultural environments builds adaptability and communication skills.
   
• System fluency – Familiarity with financial platforms like Oracle, SAP, and Unit4 reduces onboarding time and operational risk.

5. The Shifting Balance Between Permanent and Interim Work

Recruiting permanent finance professionals across the public sector has become increasingly difficult. Many organisations are reporting smaller applicant pools, longer hiring cycles, and fewer candidates actively seeking permanent roles.

A major survey of English local authorities highlights the scale of the challenge. As of October 2023, around 16% of finance posts were vacant, which equates to roughly 1,700 unfilled roles across council finance teams. This shortage reflects a wider pattern of recruitment and retention pressures in local government finance.

Vacant FTE finance posts across English local authorities as of 1 October 2023 (including roles covered by agency or interim staff).
Source: Local Government Capacity Survey - Finance, 2023

Unweighted base: All respondents - Chief Finance Officer / Section 151 Officer (13), Deputy Finance Officers (17), Accountants (41), Treasury Management Officers (17), Internal Audit Officers (25), Business Partners (46), and Other Finance Team Staff (27). Note: estimated total staff numbers for England have been rounded to the nearest ten. This may cause the figures not to add up precisely to the total.
 

Local Government Reorganisation (LGR) adds another layer of hesitation. In areas where councils are due to merge, some permanent roles available today may change or cease to exist by 2028. As a result, professionals are more cautious about moving, and many prefer to stay where they are rather than take a risk on a role with an uncertain future.

Interim resource fill the space this creates. It provides organisations with the continuity, expertise, and capacity they need, without relying on a permanent market that has become increasingly static.

Making Contract Resource Work for You

For employers balancing delivery with uncertainty, contract resourcing offers flexibility without compromise.

The right approach can help you:

• Respond faster to project demand
   
• Access specialist expertise on-demand
   
• Manage costs without reducing service quality
   
• Keep long-term teams focused while interims handle short-term delivery

Curious how these trends might affect your organisation?
Drop me a line at James.Peerless@oysterpartnership.com, I’d love to chat.