News

Use of Temporary Workforce 'Exploding' in Australia - Reports Says

Last updated: March 01, 2011

According to a recent report by temporary labour supplier Adecco, there has been an explosion in the use of temporary workforce in Australia that is set to grow by 6% a year.

Outsourcing, globalisation and a decline in the number of organisations operating a closed shop has seen an explosion in the demand for temporary labour in Australia, which generated $18.4billion in revenue in 2009/2010, the first study into temporary labour in Australia has found.

The report 2011 found that the number of temporary employees in Australia has grown dramatically over the last 20 years with just over 400,000 people currently employed on a temporary basis.

The biggest user of temporary labour is the mining sector at 12.7%, followed by finance and insurance at 11.8%, ICT at 11.6% and utilities at 11.5%.Temporary employment is a strong favourite at the big end of town with all Top 200 ASX listed companies supplementing their workforce with temporary employees.Organisations with a thousand or more employees are most likely to use temporary labour (44.8%) and their number one method of finding suitable staff for organisations of all sizes is through recruitment agencies (32%).

The trend to use temporary labour is set to continue with the Report forecasting growth of 6 per cent per annum from June 2012 to 2015 due to a shortage of skilled and semi skilled workers. In fact, organisations already using temporary labour are currently experiencing skill shortages and they expect the situation to worsen.

According to Adecco Group CEO, Jeff Doyle: It enables companies to adjust their labour supply to meet the peaks and troughs of their business needs and it helps them access a range of specialist skills as and when required. In addition, companies use temporary labour to save costs.

But it is not just employers who favour temporary employment. The Adecco study found that employees like temporary work also. One third say it is a stepping stone to full time employment, almost one third like the variety, 27 per cent want to maintain flexibility and 7 per cent like the variety of working on different assignments.

Importantly, most temporary employees enjoy a high level of job satisfaction. Nearly a third say their job is ideal or very close to ideal. Another 40 per cent say that it is reasonably ideal. Only 18 per cent say it is not close to their ideal job at all.

State wise, New South Wales has the largest concentration of temporary employees with an above average proportion of temporary jobs at 37 per cent. Victoria also has an above average proportion of 26.7 per cent. Queensland and West Australia have below average proportions, although the continued growth in the mining sector in the West and the re building of disaster ravished Queensland is likely to see this level out over time.

News

From geeks to globetrotters: the IT crowd switches to contracting

From Sydney Morning Herald - February 17, 2011

FORGET the image of IT workers as reclusive types with bifocals and pocket pen holders - the so-called ''office computer nerds'' are fast becoming the contracting cowboys of the corporate world.

The promise of up to 40 per cent more money and a globe-trotting lifestyle is luring thousands of IT professionals into private contracting, new research shows.

A survey of the IT sector and background research commissioned by recruitment company Chandler Macleod found that the number of people seeking contract work could be up to 80 per cent. Among contractors, 80 per cent identified money as the most important consideration, with the majority indicating that they could earn up to $175,000 a year.

"This is a great time for these guys - they're looking at $700 to $1100 a day," the head of Chandler Macleod, Peter Gleeson, said.

"People can feel the market shifting in their favour and the fears around job security during the GFC have been replaced with optimism about the money they can earn."

And the shift to contract work is not limited to the IT sector.

According to the latest Australian Bureau of Statistics figures there are about one million independent contractors in Australia, making up about 9.3 per cent of the total workforce. A recent survey by another large recruiter, Kelly Services, found that, of those people not working independently, 10 per cent were "extremely attracted" to the idea, and 42 per cent "somewhat attracted".

"Contrary to what you might think, people don't tend to become contractors until after they've turned 35," the head of Independent Contractors Australia, Ken Phillips said. "So as the Australian workforce gets older we can expect a larger proportion will be taking up that option."

But life as a freelancer is not all fun and games. When the global financial crisis hit, many large companies put a freeze on the use of contractors and consultants. But for those with skills in high demand there is always the promise of something better.

"The allure of contracting is partly financial, but it's also about having the ability to pick and choose the type of projects I'm engaged in," a Sydney IT specialist, Deson Kim, said. "I've worked in companies all over Asia, North America and every capital city in Australia. This is a great position to be in."

Announcements

Expand into the'wonder from downunder' - Australia

Jan 2010

Australia has largely defied the recession and has lived up to its reputation as the 'wonder from down under' and is one of the best performing economies among the developed nations. Australian Bureau of Statistics today revealed that the economy added a total of 31,000 jobs last month of which most were full-time opportunities. Growing population, mining boom, new infrastructure investments and strong banking industry have put Australia into the growth phase. In a recent speech the deputy governor of Reserve Bank of Australia, Ric Battellino, indicated the new growth phase that Australia has entered will last for years.

This growth phase provides a number of opportunities for companies in various sectors, but specifically Construction, Engineering, Health, Internet and IT, Professional Services, Climate Change and Resources to name a few.

Attend a Free Seminar - 'Doing Business in Australia'

14th January 2010 Location: London, UK Time:6.00pm to 7.30pm followed by drinks and opportunity to network

The seminar is presented by SDP Solutions and will cover topics on current economic climate, compliance environment, business establishment, tax matters and more.

SDP Solutions has assisted many companies set-up operations in Australia. Companies have partnered with SDP Solutions for advice on structuring the business, local compliance and regulatory requirements, accounting services, staff management and assistance with accessing government grant programs.

Hurry Places are Limited!! Register your interest today - email info@sdpsolutions.com.au or contact

Wendy Trollope on +44 (0)1273 737396, mobile +44 (0)7970 760 562

Raj Sesha +44 (0)7887 936321