Great news for umbrella company contractors, as latest research shows that the sector is experiencing much better rates of pay, as well as longer assignments compared to previous years.
The recent findings, carried out by the FCSA (Freelancer & Contractor Services Association) revealed that umbrella working is becoming more popular amongst high-end professionals and in a varied range of job titles.
Comparing 2015 and 2017 with regards to the differences between umbrella company contractors, the FCSA found:
- The average assignment rate has risen significantly over the last two years, with 73% of workers earning £15 per hour (or more) compared to 53% earning the same rate in 2015.
- The average length of an assignment has doubled in the last two years, with those in the sector working 29 weeks per contract compared to just 14 weeks in 2015.
- The average length of employment has increased by over 50% sine February 2015, with contractors staying with their chosen umbrella company for 46 weeks on average, compared to 30 weeks in 2015.
Julia Kermode, chief executive of FCSA, commented, “Our evidence shows that the umbrella marketplace has developed a lot over the past two years. Umbrella employees are enjoying a better and higher rate of pay, longer assignments and are showing more loyalty to their chosen umbrella employer. All of this indicates that the market has matured in the last few years and offers stability to those that choose it. The facts speak for themselves; with higher rates of pay, longer assignments and longer employment tenures, umbrella is a lot more secure than the numerous other precarious ways of working we see in the UK today.”
“By working through an umbrella company, contractors enjoy all the benefits and rights that come with being an employee; they are happy with this way of working with our research showing that many contractors stay with their umbrella for almost a year (46 weeks) nowadays, which is 53% longer than the average (30 weeks) two years ago.”
She added, “We were pleased to hear Matthew Taylor recognising the importance of umbrella firms as a valuable part of the supply chain in his recent review of modern working practices. The umbrella sector collects approximately £3bn for the Exchequer annually and the review panel clearly appreciates the important contribution it makes to the UK economy. Our latest research along with the support of Matthew Taylor is to be much heralded in an industry which is often maligned and misunderstood. We have come a long way over the past few years.”
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