REC Survey: Employment Hopes Stand Temporary

The Recruitment & Employment Confederation, along with Cordoba Services, commissioned a study on agencies & companies that use them. The study revealed there are steady times ahead for temporary workers.

A recent study from the Recruitment & Employment Confederation (REC), Market Shape and Cordoba Services indicates steady days lie ahead for temporary workers.

A survey released by the Recruitment and Employment Confederation (better known as the REC, who was assisted by Market Shape Ltd and Cordoba Services) in August 2009 provides some intriguing insights into the state of employment in the UK and its fascination with temporary workers. Needless to say, “JOBS OUTLOOK PLUS – Employers Tracking Study: Summary” struck a nerve with most of us here at The Camel.

Especially intriguing was a graph on the fifth page of the report (you can download it [PDF] here), which compared the rise in unemployment with the declining (but overwhelmingly steady by comparison) total of temporary workers. If you look at the period between March-May 2008, the start of the double line graph, you’ll notice the calm before the unemployment storm – 1,628,000 out of work. That figure peaked at the end of the chart measurement (March-May 2009) at 2,381,000. In the same period, however, temporary work seemed unaffected – 1.423 million to 1.415 million, a figure that bottomed from June-August 2008 (1.378 million). Translation – temporary opportunities might be a burgeoning path of employment.

And based on the way respondents who use agencies were leaning, that steadiness is showing no sign of slowing down. On page 17, we discover that businesses using agencies expect to use the same amount of temps with widespread steadiness, even improving their figures slightly over the next four to 12 months. In all, 78 percent expect their employment of temps to remain as is, with seven percent expecting an increase of some sort.

Whether the trend is temporary or something bordering on permanent, businesses are displaying their desire to give temporary workers a better shot at integrating with company dynamic. Respondents believe temps help businesses improve at “responding to growth” (25 percent say they play a “very important” role) and help with “meeting peaks in demand” (33 percent = “very important”). Moreover, 91 percent of respondents who use agencies say their organisation offers job related training for temporary workers from an agency (see page 21).

And herein lies the taker of the cake – when the same type of respondents were asked about agency worker pay rates, 11 percent stated temps ean more than they would if they were permanent. Only 7 percent would earn less than if employed permanently (see page 23).

It reflects comparatively well with what we at Arras People have laid notice to in recent months, though in a manner more convoluted than one would think. Two weeks ago our own Mick Hides detailed third quarter registrations with Arras, and surmised the following:

Contractor registrations have continued to fall and now account for only 17.8%; equally permanent applications have dropped to 27.8%. The consequence of these drops has been the corresponding increase in the percentage of candidates who are open to both contractor and permanent positions (i.e. Flexible) which has risen to 54.4%.

This is perhaps not surprising in the current climate where we are seeing fewer pure (i.e. day rate) contract positions. There has been a significant trend by clients towards fixed term contracts; these pay equivalent salaries with a limited duration commitment. Subsequently ‘traditional’ contractors are having to diversify to survive. (Emphasis mine)

In essence, here and now belongs to the open-minded opportunist who wants to work regardless of what it is classified as. Flexibility is king: We are becoming a workforce of “Sure, I’ll do that”, as opposed to “Sorry, but I just can’t do without this/that/the other”. The REC/Market Shape/Cordoba Services study bears out why this is going to be essential: When respondents who use agenices were asked “Which one of the following actions would you take if you couldn’t use agencies to provide temporary workers?”, 94 percent spurned the choices of “internal flexibility/overtime” and “cover the workload with your existing workforce”, opting instead that they would “recruit temporary workers” themselves (page 25).

Clearly, companies love workers…on a temporary basis. For those having trouble with that, switch the gears of your mind and look at it as a sort of fling!