Temporary Workers Are Here To Stay
Work-force flexibility and downsizing have prompted increasing use of temporary and part-time employees, and many large firms expect that trend to continue, a recent survey shows.
“Contingent workers” - temporary hires, part-timers, free-lancers and independent contractors - currently account for at least one-tenth of the work force at 21 percent of the 91 leading companies that responded to a survey by the Conference Board, a private research group.
That’s almost double the 12 percent of respondents with that proportion in 1990, and 35 percent of the companies expect to reach that level by the end of the decade, the survey indicates.
A chief advantage to temporary and part-time hiring is the flexibility it affords in meeting seasonal or cyclical demand, according to 81 percent of the firms.
“Companies that trim their regular work forces are likely to put restraints on hiring, but may still allow managers to purchase temporary and contract help to supplement staff and replace lost expertise,” said Helen Axel, a Conference Board official and author of a report on the survey.
The companies raised several concerns about letting temporary and part-time staffing levels rise too high, but no particular problem dominated the survey. Only two firms said the disadvantages outweighed the gains.
The top concern, cited by 30 percent of the companies, was a lack of skill and training among such workers. Other concerns included disruptions due to turn-over, work quality and lack of commitment.
A disproportionate amount of the growth in temporary staffing is expected overseas, particularly Europe, where labor laws make it more difficult to lay off workers.
“Contracting and other provisional forms of employment are commonplace in Europe,” she said. “Once you bring someone on the payroll (there), it’s very expensive to terminate employment.”
Three-quarters of the companies said they use temps to perform clerical duties, while 36 percent said they use contractors for a specific expertise.