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Technology contractors optimistic over pay

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The vast majority of contractors in the engineering and IT sectors expect their hourly rates to rise within the next 12 months, according to research by back office and management solutions provider Giant Group.

The Temporary Recruitment Market Report suggests engineering contractors are the most optimistic about pay – 93% believe their hourly rates will increase by the end of 2015. Two-thirds of IT contractors expect to be paid more next year.

Contractors working in engineering also report feeling more secure in work. Two-thirds feel they have more job security than 12 months ago.

The research also suggested contractors see pay as a key factor in accepting projects, ahead of longer assignments and job security. Only 17% of IT contractors cite security as the most important factor in choosing their next assignment. This is marginally higher than the pre-recession figure of 16%, but down from 20% last year.

Giant Group managing director Matthew Brown told HR magazine all signs point to contractors with technology skills feeling more secure and optimistic about work.

"The contractors with technical skills are certainly being used more by companies now as a way to bring in skills quickly," he said. "It's not quite got to the stage where they can name their price, but they're at the point where they can look beyond job security and towards higher rates for assignments."

Brown said he believes this is part of a long-term trend towards more temporary workers being employed at companies.