Speaking of the volume of temporary work assigned to Ranstad’s employment agency for the Amazon warehousing facility in Rugeley, it’s estimated that the majority of temporary jobs are assigned to temping agencies, with larger organisations pooling together 90% of their work force, consisting of temporary agency staff.
Employment agencies offer large businesses a huge incentive by handling the recruitment process for companies. This in turn frees businesses up from some of the overheads associated with employing their own staff. Some of the costs involved range among the following:
When you factor the cost of those overheads into a company’s staffing requirements, it’s no longer just the minimum wage requirements, businesses need to meet. Dependent on the employee remuneration packages, when employed in a permanent role, either full-time or part-time, there’s additional recruitment costs need to be considered.
Not all the above are mandatory, as there are some such as health care provisions and incentives, which aren’t necessary but give companies the advantage of attracting the best candidates to meet their needs.
To lower the cost of recruitment, temping agencies are brought on board by larger organisations, meaning they’re not obligated into paying any more than the one fee.
Ongoing temporary work assignments, legally requires staff to be paid holidays. That holiday pay is incorporated into the fees payable to temping agencies. They’re the employer and not the business a person works for, therefore the mandatory costs are incurred at the recruitment agency, and the clients don’t need to worry about paying holidays, salaries when staff are off sick, or any other cost of employment.
The temping issue becomes a problem in a variety of areas. Securing credit when you can’t show you’ve a full-time and permanent income coming in is often a concern for most people. Then there’s the financial security of knowing you’ll have a wage the week after next.
Knowing your pension is covered and if you’re off sick, you’ll still get some sort of pay. The morale of the workforce can be severely affected by the difference in pay. Temporary staff do the same work as the permanent staff, yet they could be paid less. When that happens, businesses can find that there becomes a morale issue as temporary workers will feel undervalued, which leads to a lack in performance.
The majority of people in temporary employment, but still ongoing, find that they’ve more problems securing permanent employment. It’s a catch 22 when the job is dangled like a carrot, in front of people, to encourage the best performance, in order to gain a permanent position, yet there’s very few actually able to obtain that.
The 2008 economy melt down is when the rise first begun and since then, it’s seen a 20% increase in the number of people out of permanent work, and employed on a temporary basis.
The amount of people in temping positions who feel they can’t gain permanent employment from a temporary assignment is up from 26% to 40%. The indications appear to express that the intermediary employment agencies are where the bulk of the jobs are to be found. Finding temporary employment on an ongoing basis will be more likely than securing a permanent position.
If you’re on the hunt for work, consider either using a temping agency, or applying for the position of a recruitment consultant, as that’s a career that is becoming more popular, due to the huge demand from businesses needing to lower their staffing costs.