The labor market is undergoing a fundamental shift, as companies increasingly opt for a contingent workforce so that they can match their staffing costs more closely with fluctuating business demands and performance.
The trend is being seen across all of the major Western economies — in the U.S., temporary workers now comprise a third of the workforce, according to the Government Accountability Office. The Globe recently reported that temporary work in Canada is growing at more than triple the pace of permanent employment.
In the U.K., the Association of Professional Staffing Companies outlined that temporary job placements are rising 7 percent year on year. With this change in industry landscape, hirers are understandably expecting more from the recruitment industry to meet their demand and to protect their own corporate reputation.
With hirers expecting more from their agencies in terms of performance and quality, the more progressive agencies are recognizing that in order to retain and grow market share, they must look to continuously improve their service standards.
To do this there are number of areas that agencies must address, including greater transparency. With hirers concerned about regulatory compliance and demonstrable corporate social responsibility they want to be clear about how their suppliers operate, it is no longer just about filling orders.
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At a time when the types of vacancies are changing, with professional positions increasingly shifting from permanent placements to temporary positions, the relationship between the hirer and the workforce provider needs to be one of complete confidence. In order for that level of trust to be maintained between the workforce provider and hirer, the hirer needs to be assured that the workforce provider is acting not only in their best interests of the client but also accepts a similar responsibility towards their workers.
As the current media interest in the use of zero hours contracts illustrates, at a time of continuing financial hardship for many working families, workers’ pay and conditions of employment can make headlines and can severely damage the reputation of those businesses involved.
Large companies increasingly examine their supply chains through both financial and ‘ethical’ audits. These companies do not want their brands associated with poor employment practices and the consequent risk of reputational and financial damage. If they have taken positive steps to improve workforce diversity, they will want to know how their suppliers source their temporary staff. If they have rigorous procedures to validate the skills and experience of their own new hires they will want to know how their suppliers undertake similar checks.
As temporary working continues to grow, the onus is on the whole industry to demonstrate greater willingness to invest in raising standards and achieving greater consistency of performance, while adding greater economic and social value. Agencies need to see themselves, and be seen, as an integral part of the wider business community not as a peripheral service provider.
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[…] The labor market is undergoing a fundamental shift, as companies increasingly opt for a contingent workforce so that they can match their staffing costs more closely with fluctuating business demands and performance. […]