More than four in 10 employers are planning significant changes as a result of Agency Workers Regulations (AWR), according to the Recruitment & Employment Confederation (REC) Jobs Outlook.

The outlook reveals 42% of employers are not planning to make any significant changes, compares with 46% in July due to the regulations which come into force from October.

Around a quarter (23%) remain unaware of the new regulations, while 44% are still undecided about what changes they are planning to make.  

Just 14% of employers will definitely make changes due to the AWR. Of those planning to make changes, a rising number have said that they will be prepared to pay higher rates of pay for some staff - 13% this month, compared to eight per cent in July.

While 23% of those planning to make changes said that they would consider decreasing their use of temporary staff, 83% of employers say their use of agency workers will either grow or be maintained over the coming year, compared with 80% last month.
  
REC’s director of policy and professional services Tom Hadley says: “The data on general hiring intentions is encouraging.  Although some employers may see reducing agency use as an obvious short-term option, the need for flexible staffing arrangements will outweigh concerns over the AWR in most sectors.
“With nearly a quarter of employers still unaware of the changes the Regulations will bring, and a further 44 per cent still unsure of what measures to take, there is scope for one final concerted push to raise awareness and address common misconceptions.

“Despite some alarmist media stories on the potential impact, the latest data supports the view that the AWR will be workable in most sectors. It also confirms that crucial role that recruiters can play in helping clients to gear up for implementation and to manage potential risk factors.”