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16
Jan
2013

Why Australia is Hiring for Temporary Workers

Posted By: Tekniskill Resources

Australian companies now prefer temporary workers as their long term and permanent solution under their staffing strategy. According to the latest research conducted by Australian Council, nearly 83.1 percent of the employers prefer to hire temporary workers for their long term projects. They also intend to have at least 25 percent of their total work force to be hired on temporary basis.

Employers Prefer Hiring Skilled Labour on Contract

Employers also prefer contractors as their stop-gap solution to their staffing needs and keep them as a quick-fix solution whenever they have a ad-hoc requirement for their projects. These contractors have now been integrated into complete organizational strategy also to reduce costs and yet have skilled labour force at their beck-n-call. It also gives flexibility of hiring to an organization without carrying long term costs. Moreover, contractual workers also add to extra manpower resources during peak season when demand is high and cut costs during slack period and demand is low.

Some of the industries that are regularly opting for contract skilled labour or temporary hiring are public sector - 28.9%, mining and resources - 17.1 percent, property and engineering – 21.9 percent. Construction industry in Australia alone leads the market share with 31.2% for hiring temporary workers who form one of the key components of the overall long term staffing strategy.

Employee benefits as Temporary Workers
Temporary staffing has also emerged as a win-win situation for not only the employers but also a employees. Many employees see contractual work as an opportunity to acquire new skills and give flexibility to take break from work whenever needed. However, it definitely does not make up a steady income which is needed to pay bills and mortgages regularly.

Moreover, there are 877,600 Australians who are underemployed - meaning they are employed but want more hours of work than they currently have. These workers also opt for part time work on contractual basis as an added advantage of earning regular income as well as acquiring new skills.
 
Contract Staffing Emerges As an Australian National Issue
Temporary worker issue has also caught attention as a national agenda also and Australian Council of Trade Unions will also hold a summit in next March to take up temporary worker issue under a political scanner.
 
Economists also foresee another aspect of contract staffing which may prove to be a problem few years down the line. According to the economic analysts, since there are more headcounts without a steady income and employee benefits, it will lead to an increased population that does not have a retirement plan in place for future.

 

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