hays: temporary workers - a permanent solution

TEMPORARY WORKERS: A PERMAnEnT SOluTiOn?

inTROducTiOn

We’ve been leaders in contingent and temporary recruiting in Australia for 35 years, so we have a deep understanding of the sector. We decided to share that insight with you and to ensure we had up to the minute data. We wanted to get the perspective of the people currently working and hiring temporary, interim and contract roles in all disciplines across Australia.

nick deligiannisManaging Director - Hays Australia & New Zealand

We believe this research is the first of its kind and we are delighted to share our findings with you so that this valuable part of our workforce can be better understood.

Our unique research reveals some interesting trends, including the fact that employers see the use of temporary workers, which is on the rise, as a long-term staffing strategy rather than a cost cutting measure. Employers also view temporary workers as integral to the success of their business and enjoy the flexibility of being able to fill short and long-term contracts at short notice. The ability to source specific skills for particular projects is also an advantage as business activity can fluctuate.

From a candidate’s perspective there are also some interesting findings and the average temporary worker profile we found was quite different from the usual perception of these workers. The average temporary workers are almost equally men and women, predominantly aged over 30 and have a range of experience and skills to bring to the workplace.

The majority of temporary workers are also interested in pursuing more work of this kind in the future, highlighting that candidates are also a driving force behind the increased use of temporary workers in the job market. They, like employers, also see the benefits of this kind of work, including the flexibility of temporary assignments, the opportunity to gain more experience and skills, and the ability to make important business contacts.

As we expect these trends to continue in the job market we hope this report will not only provide the full results of our survey but also give employers and candidates some valuable information and advice they can use.

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Temporary Workers: A Permanent Solution? | 3

TEMPORARY ASSignMEnTS A lOng-TERM SOluTiOn

When Hays recently surveyed temporary workers and their employers to find the essence of the contingent workforce in Australia and New Zealand, the results showed the use of these workers is no longer a quick fix but a long-term staffing solution for employers. The research also reveals some other interesting trends.

Where once temporary assignments may have been viewed and used by employers as a last minute cost cutting measure, 31.2 per cent of organisations now consider these workers to be a key component of a long-term staffing strategy. And this ranks above their use of temporary workers to overcome permanent headcount restrictions (25.8 per cent). A further 24.2 per cent of employers consider temporary workers to be essential to the success of their organisation, while just 11.8 per cent see them as a temporary cost reduction measure.

Which of the following best describes the use of temporary or contract workers at your organisation?

Approximately what proportion of your Australian workforce is temporary/contract?

do you expect your use of temporary or contract workers to change over the next 12 months?

A key component of my long term staffing strategy

A temporary cost reduction measure

A means of reducing permanent headcount

A means to overcome permanent headcount restrictions

Essential to the success of my organisation

0 – 25 per cent

26 – 50 per cent

51 – 75 per cent

More than 75 per cent

Yes – increase

Yes – decrease

No – it will remain the same

The Hays survey also shows the demand for temporary workers has been on the rise, particularly over the past 12 months as employers embrace this flexible approach. When asked if their use of temporary or contract workers has changed over the past year, 35.8 per cent of employers say it has increased. 83.1 per cent of employers say temporary workers constitute up to a quarter of their total workforce.

Meanwhile, about 19 per cent of employers expect their use of temporary workers to increase over the next year and more than half (50.7 per cent) expect their use will stay the same, highlighting that the trend of employing temporary workers is set to remain a focus for employers. When asked why they expected an increase in the use of temporary workers, 28.9 per cent say they need access to specific skills sets.

Has your use of temporary or contract workers changed over the past 12 months?

Increased

Decreased

Remained the same

THE AdvAnTAgES Of A flExiblE WORKfORcE

There are various benefits from an employer’s perspective when it comes to using temporary workers. They range from the flexibility they can give employers, right through to the support they can provide for a business’ permanent workforce. Employers also have the ability to hire specialist skills when needed.

flexibility

According to the Hays survey, 73 per cent of employers say flexibility is an advantage of using temporary workers as they can fill short and long-term contracts at short notice. Temporary workers also offer employers a flexible alternative to permanent staff, particularly if there are headcount restrictions in place. Sometimes permanent employees are also absent for extended periods of time for various reasons including, annual leave, maternity leave, disability, family issues and more. So, temporary workers are a great way to ensure these absences do not slow down productivity for a business.

Expertise and engagement

About 54 per cent of employers say they also find it an advantage that they can hire particular expertise when needed for special projects. Organisations can experience fluctuations in their business activity for a variety of reasons, including seasonal periods, peak production times and unforeseen workloads. So, an added benefit of using temporary workers is that they can be engaged and released at short notice, which can help organisations address challenging times in their business schedules.

Support

Another bonus of using temporary workers is the support they can provide a business’ permanent workforce. 60 per cent of the employers surveyed say this is one of the top benefits when using temporary workers. Rather than continuously redistributing work between current permanent employees, which can reduce productivity, increase stress and may negatively impact on health and safety, temporary resources can instead support a permanent team and help productivity of a business.

Testing the talent

Many organisations (28 per cent) use temporary workers on a trial basis to test their ability to do the job and assess their compatibility with the organisation. Businesses often want to make sure a potential employee will fit in with the company culture, have the necessary skills for the position, that they want to commit to the role and will enjoy it. This ‘try before you buy’ approach reduces the risks involved with any permanent hire, making temporary workers an attractive option for some employers.

Reduce administrative burden

For the employer there can also be a reduced administrative burden when using temporary workers as they are paid by a recruitment agency, which bears the administrative burden and cost of setting up an internal payroll facility.

Save time

Using a recruiter with temporary staffing options is a cost-effective way for businesses to find the top talent they need at short notice. A good recruitment firm will have a wide pool of the top candidates. They will also fully interview candidates and conduct all the relevant reference checks. They will also ensure the candidates have undertaken any necessary pre-employment medicals, safety checks and OHS training. This makes it attractive for employers to use temporary employees, especially when they have confidence in the recruitment service.

What do you see as the advantages of temporary or contract workers? (tick all relevant)

0

10

20

30

40

50

60

70

80

Flexibility – they can fill both long and short-term needs

They can be engaged and released at short notice

I can hire particular expertise for special projects

Support for my permanent workforce during workload peaks

To avoid a permanent hire or overcome headcount restrictions

To save money or overcome budget restrictions

The reduced administrative burden

Lack of available permanent talent

To trial a candidate before offering them a permanent role



Which industry do you work in?

Construction, property & engineering

Financial services

Hospitality, travel & entertainment

IT & telecommunications

Manufacturing

Resources & mining

Professional services

Public sector

Retail

Transport & distribution

industry differences

According to the Hays survey, some industries use a contingent workforce more than others. The top industries to say they utilise temporary workers include the public sector (28.9 per cent), construction, property and engineering (21.9 per cent) and resources and mining (17.1 per cent).

0

5

10

15

20

25

30

24.2 per cent of employers within the construction, property and engineering industry expect their use of temporary workers to increase over the next 12 months. 20 per cent expect an increase in the public sector and a 10 per cent increase in resources and mining is also expected. And all these industries anticipate this trend will continue – construction, property, and engineering (48.8 per cent), resources and mining (46.7 per cent) and public service (44.4 per cent).

construction, property & engineering

Resources & mining Public sector

Yes – increase 24.4% 10% 20.4%

Yes – decrease 26.8% 43.3% 35.2%

no – it will remain the same 48.8% 46.7% 44.4%

do you expect your use of temporary or contract workers to change over the next 12 months?

if it will increase, why?


Resources & mining Public sector

To save money 0% 0% 9.1%

To avoid permanent headcount

44.4% 0% 54.5%

need for specific skill sets 11.1% 100% 18.2%

To overcome a shortage of suitable permanent candidates

44.4% 0% 18.2%

According to our research, the predominant reason for the use of temporary workers in the public sector is to backfill positions when governments are recruiting for permanent roles. This process can be quite lengthy taking anywhere from three to six months to fill a permanent position. So, temporary workers are often utilised in the interim. However, in many cases there is an opportunity for candidates who take on temporary assignments within the public sector to move into a permanent role if they are suitable. Temporary assignments are a great opportunity to make an impression with the employer. The roles in government are also varied and temporary workers have the opportunity to work across different areas and find out what it is they like to do best before committing to a permanent role.

The construction and engineering industries are predominantly project-led sectors where the work flow is based on the number of projects coming online or finishing up. So often, particularly in areas like trades and labour, it is far more cost effective to source temporary staff on an as-needs basis. Specifically, in the white collar end of the construction industry, and even more so in engineering, there is a lot of mature-age skilled candidates who look for specific project work as a lifestyle choice. And some of these professionals choose to work on a temporary basis because they have more earning potential due to the demand for their skills. While the employer might pay slightly elevated rates for these workers, they can save on other permanent staff benefits. Employers can also hire their workers as their projects dictate. Furthermore, both construction and engineering projects can take place in remote locations, so businesses might hire temporary workers for specific roles rather than permanent positions as an employer might not win further projects or continue work in that area. Often companies are also looking for specific skills that they need for a certain project

The resources and mining industry, much like the construction industry, has peaks and lows in their business activity, meaning temporary workers who are more flexible can fit in better with the needs of this sector. According to Hays Resources & Mining, there are many candidates, particularly in trades and labour, who not

only work on a temporary basis but prefer to work this way as this gives them the potential to earn more money. So, candidates in resources and mining also appear to be contributing to the trend of increased temporary workers use in this industry.

These were the reasons given by the different industries for their use of temporary workers, according to the Hays survey. While construction, property and engineering used temporary workers to overcome a shortage of suitable permanent candidates (44.4 per cent), resources and mining was looking for specific skill sets (100 per cent), whereas the public sector wanted to avoid permanent headcount (54.5 per cent).

The top advantages cited by these industries for using temporary workers was the flexibility, the ability to engage and release temporary workers at short notice, the ability to hire the expertise needed for special projects and to provide support for their permanent staff.

When asked what best describes their use of temporary workers, 35.1 per cent of employers in construction, engineering and property say it is part of a long-term staffing strategy. 36.4 per cent agreed with this statement in the resources and mining industry along with 25 per cent in the public sector. The various industries also say temporary workers are essential to the success of their organisations.

Yet again these employers say, like the majority of the employers surveyed who indicate they use temporary workers, that temporary workers are a long-term staffing strategy rather than a quick fix and they are essential to the success of their organisation.


Resources & mining

Public sector

flexibility – they can fill both long and short-term needs 81.6% 70.4% 80%

They can be engaged and released at short notice 71.1% 74.1% 68%

i can hire particular expertise for special projects

52.6% 63% 56%

Support for my permanent workforce during workload peaks

57.9% 63% 60%

To avoid a permanent hire or overcome headcount restrictions

31.6% 18.5% 44%

To save money or overcome budget restrictions 15.8% 3.7% 10%

The reduced administrative burden 13.2% 11.1% 14%

lack of available permanent talent 7.9% 22.2% 24%

To trial a candidate before offering them a permanent role

10.5% 44.4% 18%

What do you see as the advantages of temporary or contract workers? (tick all relevant)

Which of the following best describes the use of temporary or contract workers at your organisation?


Resources & mining

Public sector

A key component of my long term staffing strategy

35.1% 36.4% 25%

A temporary cost reduction measure 18.9% 4.5% 8.3%

A means of reducing permanent headcount

10.8% 4.5% 12.5%

A means to overcome permanent headcount restrictions

10.8% 22.7% 31.3%

Essential to the success of my organisation

24.3% 31.8% 22.9%



The Hays survey paints a very different picture to the typical perception of the average temporary worker.

Temporary workers are often perceived to be women in entry-level admin positions, but the Hays survey reveals 43.4 per cent are men and 56.6 per cent are women. According to the survey, 75.8 per cent of temporary workers are aged 30 and over, and 58.4 per cent say they are ‘experienced/non managers’, while 15.2 per cent are considered ‘middle management’.

PROfilE Of A TYPicAl TEMPORARY WORKER

Are you male/female?

Male

Female

How old are you?

What best describes your current/ latest role?

Under 30

30-47

48 or older

Entry level

Experienced/non-manager

Mid Management

Senior Management

Executive

The Hays survey also shows the public sector (18.8 per cent), construction, property and engineering (18.6 per cent), financial services (14.6 per cent), IT and telecommunications (12.3 per cent) and resources and mining (11.8 per cent) industries are where temporary workers are working the most.

Which industry do you work in?

Advertising & media

Construction, property & engineering

Financial services

Hospitality, travel & entertainment

IT & telecommunications

Manufacturing

Resources & mining

Professional services

Public sector

Retail

Transport & distribution

0

5

10

15

20

Therefore, the survey results dispel the perception that temporary workers are only entry-level admin candidates and reveal some interesting trends about the contingent workforce. As the temporary workforce is more diverse than once thought these workers can bring a great range of skills and levels of experience to a business right the way through from their soft skills to their technical abilities.

THE cAndidATE PERSPEcTivE

We asked a number of questions around reasons for taking on temporary assignments: The majority of temporary workers (96.3 per cent) say they are willing to take on another temporary assignment in future and 29.1 per cent say temporary assignments are their first preference. This suggests that the growth of temporary assignments has also been driven by candidates, many of whom are only interested in this type of work.

Many people want greater flexibility in their working arrangements and consequently there is a temporary candidate pool who are only interested in temporary assignments. These workers also have the chance to advance their skills and career on more flexible terms with a variety of tasks and workloads – or it could mean a better work/life balance.

The Hays survey reveals about half, or 49.8 per cent, say temporary assignments give them the ability to gain experience and make vital contacts within a particular company of interest.

Being able to gain more opportunities and skills is also another benefit cited by 48.6 per cent of candidates doing temporary or contract work, along with having variety in their workload (37.3 per cent) and being able to remain in the workforce due to the flexibility of the work (also 37.3 per cent).

What do you see as the advantages of temporary assignments? (tick all relevant)

Improved work/life balance

The flexibility I need to remain in the workforce

The variety of the workload

The broader depth of opportunities, experience and skills I gain

The ability to gain experience and make contacts within a particular company of interest

The hourly rate

0

10

20

30

50

40



As expected, the different generations within the contingent workforce have different motivations for working on a temporary basis. While the under 30s want to gain experience and make contacts within a particular company (62.4 per cent), those aged between 30 and 47 want a broader depth of opportunities and skills (52.5 per cent. Meanwhile, temporary workers over the age of 48 need the flexibility to remain in the workforce (44.4 per cent).

Therefore, the under 30 and 30 to 47 age groups were more interested in how a temporary assignment would add to their experience and skills, while the 48-plus group wanted to see if it would be appropriate to their work/life balance before taking on their next assignment.

However, regardless of age these workers felt they were treated as valued members of an employer’s team and that they were integral to the success of those businesses.

WHAT’S iMPORTAnT

under 30 30-47 48+

if i’m able to add immediate value 5.9% 3.8% 11.2%

if it will provide new experiences or develop my skills

39.8% 26.4% 15.8%

if it suits my work/life balance needs 16.1% 15.1% 21.1%

The hourly rate 18.6% 24.1% 20.4%

The length of the assignment 13.6% 17.9% 18.4%

The organisation and its reputation in the market

5.9% 12.7% 13.2%

What do you consider before accepting or declining a temporary assignment?

How would you rate the attitude of organisations you worked for towards temporary workers?

under 30 30-47 48+

integral to their success 38.5% 40.3% 42%

Mixed 53.3% 53.2% 47.5%

We're seen as a necessary evil! 8.2% 6.5% 10.5%

When on an assignment do your colleagues/managers usually make you feel like:

under 30 30-47 48+

A valued part of the team 50.8% 53.5% 50.6%

like an outsider 4.1% 4.6% 5.6%

varies from person to person 45.1% 41.9% 43.8%

Interested to know what candidates expect from a temporary assignment, the Hays survey asked what it is they consider before accepting or declining a temporary assignment. 26.3 per cent say they will consider if the assignment will provide them with new experiences and further develop their skills, while 21.6 per cent look at the hourly rate on offer. The length of the assignment (17.2 per cent) and if the assignment suits the candidates’ work/life balance needs (17.2 per cent) are also important considerations. 11.2 per cent of candidates also look at how reputable an organisation is before signing on with them.

So, the advice to employers to ensure they attract the top talent is to make sure the assignments they offer will not only meet their business needs but challenge temporary workers while offering a competitive hourly rate.

What do you consider before accepting or declining a temporary assignment?

0

10

5

15

20

30

25

If I’m able to add immediate value

If it will provide new experiences or develop my skills

If it suits my work/life balance needs

The hourly rate

The length of the assignment

The organisation and its reputation in the market

As more businesses are turning to temporary workers, employers need to properly nurture this contingent workforce if they are to gain the most value from it.

If employers are to get the most out of their temporary workers, they need to build good relations in the same way they do with their permanent staff. By treating temporary workers as part of your team rather than an outsider and providing the appropriate induction, they will feel connected and be able to quickly access the appropriate resources, policies and processes. Ultimately they’ll be more productive and produce higher quality results.

This includes firstly explaining each team member’s role and their specialities. Do the same for the temporary worker – tell the team what the temporary worker’s role will be and their previous experience. The faster everyone in the team gets to know each other, the quicker trust builds and communication barriers come down making everyone work more effectively.

Secondly, you need to impart the necessary internal knowledge. This includes explaining to the temporary worker when and how people should communicate and with which tools. It also includes identifying the knowledge required to perform their assignment, from where to find the information they need on shared drives and websites as well as the relevant processes and policies. Also, give them the context of the tasks you set out for them so they can understand the bigger picture.

If another team member is required to deliver this knowledge, set an appointment for the temporary worker’s first hour or two.

You should also clearly set out the objectives of what the temporary worker is to achieve. This allows your temp to monitor their own progress and creates shared accountability for their performance.

Temporary workers by their very nature hit the ground running, but these simple steps can help ensure their productivity is maximised from their first hour in your workplace. It also builds confidence and competence at the commencement of the assignment, which ultimately ensures you gain the best value from your temp.

And it seems, according to the Hays survey, employers are doing the right thing, with 51.9 per cent saying they are treated as a valued part of the team.

OnbOARding YOuR TEMPORARY WORKER

When on an assignment do your colleagues/managers usually make you feel like:

How would you rate the attitude of organisations you worked for towards temporary workers?

A valued part of the team

Like an outsider

Varies from person to person

Integral to their success

Mixed

We’re seen as a necessary evil!

focus on retention

It’s positive to see that 40.4 per cent of temporary workers say they are treated like they are integral to the success of the businesses they work for. Only 8.2 per cent say they are viewed as a ‘necessary evil’ by their employers.

Treating temporary workers as part of the team and imparting the appropriate knowledge of the employer can also be a great retention strategy. It can help encourage temporary workers to stay around if a permanent position arises or if another temporary assignment comes up in the future. This has obvious benefits to the productivity of a business.


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hays: temporary workers - a permanent solution

Recruiting & HR