Temporary agency hires reach all-time high

Temporary agency hires are at an all-time high for the eighth consecutive month.

According to Mark Marcon, senior research analyst with U.S wealth management firm Robert W. Baird & Co. Inc, temporary hires in service employment had doubled since 1995.

“Companies prefer hiring through temporary agencies because it gives them more flexibility, and helps them deal with uncertain times and uncertain regulations,” Marcon said.

“Having a job through a temporary agency was viewed as a sub-optimal type of work, but broadly speaking, it’s increasing in recognition as a social good rather than social negative –and it’s a good way to get people from a state of unemployment to employment,” he added.

Speaking exclusively to Recruitment Grapevine, Joe Tully, Managing Director of De Poel – which places 40,000 people in temporary jobs every week – said: “We are seeing a rise in the number of people that don’t want a traditional employment contract.

“People are opting for temporary work as a lifestyle choice. In a permanent position it isn’t just the employer that is locked down, the employee is, too.”

The tech industry was revealed as having the fastest growing numbers of temporary hires, as companies reported seeing “the benefit” of hiring IT professionals on a project basis rather than hiring them full-time.

“It makes more sense to ‘rent’ a large portion of talent as flexible staff that can help with the project,” Marcon said.

Where IT staffing had made up just five percent of the placements in 1995, today it accounts for 19% as the tech industry has grown.

“Part of the drive behind this increased usage is that companies are facing more regulatory burdens,” Marcon said. “By hiring through temporary agencies, they are offloading that responsibility and putting it onto the temp agency.”

The analyst’s report also showed a large variance in the length of time temporary staff are employed and the amount of money they earn from each placement.

Image courtesy of flickr user Leyrlo

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