Why CFOs Are Making the Switch to Contractors: The Financial Benefits

The economic pressures of the past 18 months have led many organisations to re-evaluate their approach to workforce planning. From rising employment costs to fluctuating demand, CFOs and procurement leaders are under increasing pressure to manage budgets without compromising on performance.

As a result, many are turning away from traditional permanent hiring models in favour of a more flexible solution: contractors and interim professionals.

Contract recruitment is not a new concept, but in 2025, it’s becoming a strategic priority - particularly for finance and procurement leaders seeking greater cost control, agility, and value for money.

Why Now? The Financial Drivers Behind the Shift

This trend isn’t just about cutting costs - it’s about optimising resources. Engaging contract professionals allows organisations to invest in key areas of the business only when required, avoiding unnecessary long-term commitments.

Reduced Long-Term Costs

Contractors are typically engaged for a fixed period or project, meaning organisations avoid ongoing employment liabilities such as pensions, redundancy pay, and annual leave.

Immediate Access to Specialised Skills

Contract professionals bring proven expertise to the table, which reduces onboarding time and avoids the additional costs associated with training and upskilling permanent hires.

Budget Clarity and Control

With clearly defined day rates or project fees, contractor spend is easier to forecast and manage - making cost control more straightforward during periods of uncertainty.

Greater Workforce Agility

Contractors enable organisations to scale resource up or down quickly, without the delay or administrative complexity of permanent hiring.

Navigating Uncertainty in a Shifting Landscape

As AI-driven automation evolves rapidly, workforce planning is becoming increasingly complex. Organisations face growing uncertainty around the long-term need for certain roles, particularly in finance and operations. On top of this, changes to employment legislation coming in 2026 - including reforms to probation periods and worker protections - are prompting CFOs to seek more flexible, low-risk workforce strategies. Contractors offer a way to remain agile amid these unknowns.

What This Looks Like in Practice

For finance and procurement teams, this shift can have a tangible impact. Whether it’s support with year-end reporting, managing system migrations, or delivering procurement transformation programmes, contract professionals offer a way to maintain momentum without overstretching internal teams.

Many CFOs are now maintaining a core in-house team while building a flexible layer of contract support that can be deployed as needed - improving both speed and responsiveness.

Making It Work: Flexible, Outsourced Recruitment Support

At Owen Daniels, we work with finance and procurement leaders to provide fast access to pre-vetted, highly skilled contractors - without the overheads and inefficiencies often associated with traditional recruitment models.

Our interim recruitment solution offers a flexible approach:

• We manage the full contractor process from sourcing to compliance
• You receive support tailored to specific projects or business cycles
• Your team stays focused, while we handle the logistics

Learn more about our outsourced recruitment support for contractors, here.

Final Thoughts: Flexible Talent, Financially Smart

Contractors are no longer just a short-term fix - they’re a smart, strategic choice. For CFOs tasked with delivering more for less, outsourced contract recruitment provides the flexibility and financial control needed to navigate today’s evolving business landscape.