TEMPORARY
WORKERS:
A Permanent
Solution?
Introduction
Nick Deligiannis
Managing Director - Hays Australia & New Zealand
We believe this research is the first of its kind and we are delighted
to share our findings with you so that this valuable part of our
workforce can be better understood.
Our unique research reveals some interesting trends, including the
fact that employers see the use of temporary workers, which is on
the rise, as a long-term staffing strategy rather than a cost cutting
measure. Employers also view temporary workers as integral to
the success of their business and enjoy the flexibility of being able
to fill short and long-term contracts at short notice. The ability to
source specific skills for particular projects is also an advantage as
business activity can fluctuate.
From a candidate’s perspective there are also some interesting
findings and the average temporary worker profile we found was
quite different from the usual perception of these workers. The
average temporary workers are almost equally men and women,
predominantly aged over 30 and have a range of experience and
skills to bring to the workplace.
We’ve been leaders in contingent and temporary recruiting in
Australia for 35 years, so we have a deep understanding of the
sector. We decided to share that insight with you and to ensure
we had up to the minute data. We wanted to get the perspective
of the people currently working and hiring temporary, interim and
contract roles in all disciplines across Australia.
2 | Temporary Workers: A Permanent Solution?
The majority of temporary workers are also interested in pursuing
more work of this kind in the future, highlighting that candidates
are also a driving force behind the increased use of temporary
workers in the job market. They, like employers, also see the
benefits of this kind of work, including the flexibility of temporary
assignments, the opportunity to gain more experience and skills,
and the ability to make important business contacts.
As we expect these trends to continue in the job market we hope
this report will not only provide the full results of our survey but
also give employers and candidates some valuable information
and advice they can use.
Temporary assignments
a long-term solution
When Hays recently surveyed temporary workers and their
employers to find the essence of the contingent workforce in
Australia and New Zealand, the results showed the use of these
workers is no longer a quick fix but a long-term staffing solution for
employers. The research also reveals some other interesting trends.
Where once temporary assignments may have been viewed and
used by employers as a last minute cost cutting measure, 31.2
per cent of organisations now consider these workers to be a key
component of a long-term staffing strategy. And this ranks above
their use of temporary workers to overcome permanent headcount
restrictions (25.8 per cent). A further 24.2 per cent of employers
consider temporary workers to be essential to the success of their
organisation, while just 11.8 per cent see them as a temporary cost
reduction measure.
Has your use of temporary or contract
workers changed over the past 12 months?
Increased
Decreased
Remained the same
Which of the following best describes the use of temporary or
contract workers at your organisation?
A key component of my
long term staffing strategy
A temporary cost
reduction measure
A means of reducing
permanent headcount
A means to overcome
permanent headcount
restrictions
Meanwhile, about 19 per cent of employers expect their use of
temporary workers to increase over the next year and more
than half (50.7 per cent) expect their use will stay the same,
highlighting that the trend of employing temporary workers is set
to remain a focus for employers. When asked why they expected
an increase in the use of temporary workers, 28.9 per cent say
they need access to specific skills sets.
Do you expect your use of temporary or contract
workers to change over the next 12 months?
Essential to the success
of my organisation
The Hays survey also shows the demand for temporary workers
has been on the rise, particularly over the past 12 months as
employers embrace this flexible approach. When asked if their use
of temporary or contract workers has changed over the past year,
35.8 per cent of employers say it has increased. 83.1 per cent of
employers say temporary workers constitute up to a quarter of their
total workforce.
Yes – increase
Yes – decrease
No – it will
remain the same
Approximately what proportion of your
Australian workforce is temporary/contract?
0 – 25 per cent
26 – 50 per cent
51 – 75 per cent
More than 75 per cent
Temporary Workers: A Permanent Solution? | 3
The advantages of a
flexible workforce
There are various benefits from an employer’s perspective when it
comes to using temporary workers. They range from the flexibility
they can give employers, right through to the support they can
provide for a business’ permanent workforce. Employers also have
the ability to hire specialist skills when needed.
Flexibility
According to the Hays survey, 73 per cent of employers say
flexibility is an advantage of using temporary workers as they
can fill short and long-term contracts at short notice. Temporary
workers also offer employers a flexible alternative to permanent
staff, particularly if there are headcount restrictions in place.
Sometimes permanent employees are also absent for extended
periods of time for various reasons including, annual leave,
maternity leave, disability, family issues and more. So, temporary
workers are a great way to ensure these absences do not slow
down productivity for a business.
Expertise and engagement
What do you see as the advantages of temporary
or contract workers? (tick all relevant)
80
70
60
50
40
30
20
10
0
About 54 per cent of employers say they also find it an advantage
that they can hire particular expertise when needed for special
projects. Organisations can experience fluctuations in their business
activity for a variety of reasons, including seasonal periods, peak
production times and unforeseen workloads. So, an added benefit
of using temporary workers is that they can be engaged and
released at short notice, which can help organisations address
challenging times in their business schedules.
Testing the talent
Many organisations (28 per cent) use temporary workers on a trial
basis to test their ability to do the job and assess their compatibility
with the organisation. Businesses often want to make sure a
potential employee will fit in with the company culture, have the
necessary skills for the position, that they want to commit to the
role and will enjoy it. This ‘try before you buy’ approach reduces the
risks involved with any permanent hire, making temporary workers
an attractive option for some employers.
Reduce administrative burden
For the employer there can also be a reduced administrative
burden when using temporary workers as they are paid by a
recruitment agency, which bears the administrative burden and
cost of setting up an internal payroll facility.
4 | Temporary Workers: A Permanent Solution?
To save money or overcome
budget restrictions
They can be engaged and
released at short notice
The reduced administrative
burden
I can hire particular expertise
for special projects
Lack of available
permanent talent
Support for my permanent
workforce during workload
peaks
To trial a candidate before
offering them a permanent
role
To avoid a permanent hire
or overcome headcount
restrictions
Support
Another bonus of using temporary workers is the support they
can provide a business’ permanent workforce. 60 per cent of
the employers surveyed say this is one of the top benefits when
using temporary workers. Rather than continuously redistributing
work between current permanent employees, which can reduce
productivity, increase stress and may negatively impact on health
and safety, temporary resources can instead support a permanent
team and help productivity of a business.
Flexibility – they can fill both
long and short-term needs
Save time
Using a recruiter with temporary staffing options is a costeffective way for businesses to find the top talent they need at
short notice. A good recruitment firm will have a wide pool of
the top candidates. They will also fully interview candidates and
conduct all the relevant reference checks. They will also ensure
the candidates have undertaken any necessary pre-employment
medicals, safety checks and OHS training. This makes it attractive
for employers to use temporary employees, especially when they
have confidence in the recruitment service.
Industry differences
According to the Hays survey, some industries use a contingent
workforce more than others. The top industries to say they
utilise temporary workers include the public sector (28.9 per
cent), construction, property and engineering (21.9 per cent) and
resources and mining (17.1 per cent).
If it will increase, why?
Construction,
property &
engineering
To save money
Which industry do you work in?
30
To avoid
permanent
headcount
25
Need for specific
skill sets
To overcome
a shortage of
suitable permanent
candidates
20
15
5
0
Financial services
Hospitality, travel
& entertainment
IT & telecommunications
Resources & mining
Professional services
Public sector
Retail
Transport & distribution
Manufacturing
24.2 per cent of employers within the construction, property and
engineering industry expect their use of temporary workers to
increase over the next 12 months. 20 per cent expect an increase
in the public sector and a 10 per cent increase in resources and
mining is also expected. And all these industries anticipate this
trend will continue – construction, property, and engineering (48.8
per cent), resources and mining (46.7 per cent) and public service
(44.4 per cent).
Do you expect your use of temporary or contract workers to
change over the next 12 months?
Construction,
property &
engineering
Resources &
mining
Public sector
0%
0%
9.1%
44.4%
0%
54.5%
11.1%
100%
18.2%
44.4%
0%
18.2%
According to our research, the predominant reason for the use
of temporary workers in the public sector is to backfill positions
when governments are recruiting for permanent roles. This
process can be quite lengthy taking anywhere from three to six
months to fill a permanent position. So, temporary workers are
often utilised in the interim. However, in many cases there is an
opportunity for candidates who take on temporary assignments
within the public sector to move into a permanent role if they are
suitable. Temporary assignments are a great opportunity to make
an impression with the employer. The roles in government are
also varied and temporary workers have the opportunity to work
across different areas and find out what it is they like to do best
before committing to a permanent role.
10
Construction, property
& engineering
Resources &
mining
Public sector
Yes – increase
24.4%
10%
20.4%
Yes – decrease
26.8%
43.3%
35.2%
No – it will
remain the same
48.8%
46.7%
44.4%
The construction and engineering industries are predominantly
project-led sectors where the work flow is based on the number
of projects coming online or finishing up. So often, particularly
in areas like trades and labour, it is far more cost effective to
source temporary staff on an as-needs basis. Specifically, in the
white collar end of the construction industry, and even more so in
engineering, there is a lot of mature-age skilled candidates who
look for specific project work as a lifestyle choice. And some of
these professionals choose to work on a temporary basis because
they have more earning potential due to the demand for their
skills. While the employer might pay slightly elevated rates for
these workers, they can save on other permanent staff benefits.
Employers can also hire their workers as their projects dictate.
Furthermore, both construction and engineering projects can take
place in remote locations, so businesses might hire temporary
workers for specific roles rather than permanent positions as an
employer might not win further projects or continue work in that
area. Often companies are also looking for specific skills that they
need for a certain project
The resources and mining industry, much like the construction
industry, has peaks and lows in their business activity, meaning
temporary workers who are more flexible can fit in better with the
needs of this sector. According to Hays Resources & Mining, there
are many candidates, particularly in trades and labour, who not
Temporary Workers: A Permanent Solution? | 5
only work on a temporary basis but prefer to work this way as this
gives them the potential to earn more money. So, candidates in
resources and mining also appear to be contributing to the trend
of increased temporary workers use in this industry.
These were the reasons given by the different industries for their
use of temporary workers, according to the Hays survey. While
construction, property and engineering used temporary workers to
overcome a shortage of suitable permanent candidates (44.4 per
cent), resources and mining was looking for specific skill sets (100
per cent), whereas the public sector wanted to avoid permanent
headcount (54.5 per cent).
The top advantages cited by these industries for using temporary
workers was the flexibility, the ability to engage and release temporary
workers at short notice, the ability to hire the expertise needed for
special projects and to provide support for their permanent staff.
When asked what best describes their use of temporary workers,
35.1 per cent of employers in construction, engineering and
property say it is part of a long-term staffing strategy. 36.4 per
cent agreed with this statement in the resources and mining
industry along with 25 per cent in the public sector. The various
industries also say temporary workers are essential to the success
of their organisations.
Yet again these employers say, like the majority of the employers
surveyed who indicate they use temporary workers, that
temporary workers are a long-term staffing strategy rather than a
quick fix and they are essential to the success of their organisation.
What do you see as the advantages of temporary
or contract workers? (tick all relevant)
Construction,
property &
engineering
Resources &
mining
Flexibility – they can fill both
long and short-term needs
81.6%
70.4%
80%
They can be engaged and
released at short notice
71.1%
74.1%
68%
I can hire particular
expertise for special
projects
52.6%
63%
56%
Support for my permanent
workforce during workload
peaks
57.9%
63%
60%
To avoid a permanent hire
or overcome headcount
restrictions
31.6%
18.5%
44%
To save money or overcome
budget restrictions
15.8%
3.7%
10%
The reduced
administrative burden
13.2%
11.1%
14%
Lack of available
permanent talent
7.9%
22.2%
24%
To trial a candidate before
offering them a permanent
role
10.5%
44.4%
18%
6 | Temporary Workers: A Permanent Solution?
Public
sector
Which of the following best describes the use of
temporary or contract workers at your organisation?
Construction,
property &
engineering
Resources &
mining
Public sector
A key component
of my long term
staffing strategy
35.1%
36.4%
25%
A temporary cost
reduction measure
18.9%
4.5%
8.3%
A means of
reducing permanent
headcount
10.8%
4.5%
12.5%
A means to
overcome
permanent
headcount
restrictions
10.8%
22.7%
31.3%
Essential to the
success of my
organisation
24.3%
31.8%
22.9%
Profile of a typical
temporary worker
The Hays survey paints a very different picture to the typical
perception of the average temporary worker.
What best describes your current/ latest role?
Temporary workers are often perceived to be women in entry-level
admin positions, but the Hays survey reveals 43.4 per cent are
men and 56.6 per cent are women. According to the survey, 75.8
per cent of temporary workers are aged 30 and over, and 58.4 per
cent say they are ‘experienced/non managers’, while 15.2 per cent
are considered ‘middle management’.
Entry level
Experienced/non-manager
Mid Management
Are you male/female?
Senior Management
Executive
Male
Female
The Hays survey also shows the public sector (18.8 per cent),
construction, property and engineering (18.6 per cent), financial
services (14.6 per cent), IT and telecommunications (12.3 per cent)
and resources and mining (11.8 per cent) industries are where
temporary workers are working the most.
Which industry do you work in?
20
How old are you?
15
10
Under 30
30-47
5
48 or older
0
Advertising & media
Manufacturing
Construction, property
& engineering
Resources & mining
Professional services
Financial services
Public sector
Hospitality, travel &
entertainment
Retail
IT &
telecommunications
Transport & distribution
Therefore, the survey results dispel the perception that
temporary workers are only entry-level admin candidates and
reveal some interesting trends about the contingent workforce. As
the temporary workforce is more diverse than once thought these
workers can bring a great range of skills and levels of experience
to a business right the way through from their soft skills to their
technical abilities.
Temporary Workers: A Permanent Solution? | 7
The candidate
perspective
We asked a number of questions around reasons for taking on
temporary assignments: The majority of temporary workers
(96.3 per cent) say they are willing to take on another temporary
assignment in future and 29.1 per cent say temporary assignments
are their first preference. This suggests that the growth of
temporary assignments has also been driven by candidates, many
of whom are only interested in this type of work.
Many people want greater flexibility in their working arrangements
and consequently there is a temporary candidate pool who are
only interested in temporary assignments. These workers also
have the chance to advance their skills and career on more flexible
terms with a variety of tasks and workloads – or it could mean a
better work/life balance.
The Hays survey reveals about half, or 49.8 per cent, say
temporary assignments give them the ability to gain experience
and make vital contacts within a particular company of interest.
Being able to gain more opportunities and skills is also another
benefit cited by 48.6 per cent of candidates doing temporary or
contract work, along with having variety in their workload (37.3
per cent) and being able to remain in the workforce due to the
flexibility of the work (also 37.3 per cent).
What do you see as the advantages of
temporary assignments? (tick all relevant)
50
40
30
20
10
0
Improved work/life
balance
The flexibility I need
to remain in the
workforce
The variety of the
workload
The broader depth of
opportunities, experience
and skills I gain
The ability to gain
experience and make
contacts within a particular
company of interest
The hourly rate
8 | Temporary Workers: A Permanent Solution?
WHAT’S IMPORTANT
As expected, the different generations within the contingent
workforce have different motivations for working on a temporary
basis. While the under 30s want to gain experience and make
contacts within a particular company (62.4 per cent), those aged
between 30 and 47 want a broader depth of opportunities and skills
(52.5 per cent. Meanwhile, temporary workers over the age of 48
need the flexibility to remain in the workforce (44.4 per cent).
Therefore, the under 30 and 30 to 47 age groups were more
interested in how a temporary assignment would add to their
experience and skills, while the 48-plus group wanted to see
if it would be appropriate to their work/life balance before taking
on their next assignment.
However, regardless of age these workers felt they were treated
as valued members of an employer’s team and that they were
integral to the success of those businesses.
What do you consider before accepting or declining
a temporary assignment?
Under 30
30-47
48+
If I’m able to add
immediate value
5.9%
3.8%
11.2%
If it will provide
new experiences or
develop my skills
39.8%
26.4%
15.8%
If it suits my work/
life balance needs
16.1%
15.1%
21.1%
The hourly rate
18.6%
24.1%
20.4%
The length of the
assignment
13.6%
17.9%
18.4%
The organisation and
its reputation in the
market
5.9%
12.7%
13.2%
When on an assignment do your colleagues/managers
usually make you feel like:
Under 30
30-47
48+
50.8%
53.5%
50.6%
Like an outsider
4.1%
4.6%
5.6%
Varies from person
to person
45.1%
41.9%
43.8%
A valued part
of the team
Interested to know what candidates expect from a temporary
assignment, the Hays survey asked what it is they consider before
accepting or declining a temporary assignment. 26.3 per cent say
they will consider if the assignment will provide them with new
experiences and further develop their skills, while 21.6 per cent
look at the hourly rate on offer. The length of the assignment (17.2
per cent) and if the assignment suits the candidates’ work/life
balance needs (17.2 per cent) are also important considerations.
11.2 per cent of candidates also look at how reputable an
organisation is before signing on with them.
So, the advice to employers to ensure they attract the top talent
is to make sure the assignments they offer will not only meet their
business needs but challenge temporary workers while offering a
competitive hourly rate.
What do you consider before accepting or declining
a temporary assignment?
30
25
20
15
How would you rate the attitude of organisations
you worked for towards temporary workers?
10
Under 30
30-47
48+
Integral to their
success
38.5%
40.3%
42%
Mixed
53.3%
53.2%
47.5%
We're seen as a
necessary evil!
8.2%
6.5%
10.5%
5
0
The hourly rate
If I’m able to add
immediate value
If it will provide
new experiences or
develop my skills
The length of the
assignment
The organisation and its
reputation in the market
If it suits my work/life
balance needs
Temporary Workers: A Permanent Solution? | 9
onboarding your
temporary worker
As more businesses are turning to temporary workers, employers
need to properly nurture this contingent workforce if they are to
gain the most value from it.
If employers are to get the most out of their temporary workers,
they need to build good relations in the same way they do with
their permanent staff. By treating temporary workers as part of
your team rather than an outsider and providing the appropriate
induction, they will feel connected and be able to quickly access
the appropriate resources, policies and processes. Ultimately
they’ll be more productive and produce higher quality results.
This includes firstly explaining each team member’s role and
their specialities. Do the same for the temporary worker – tell the
team what the temporary worker’s role will be and their previous
experience. The faster everyone in the team gets to know each
other, the quicker trust builds and communication barriers come
down making everyone work more effectively.
Secondly, you need to impart the necessary internal knowledge.
This includes explaining to the temporary worker when and how
people should communicate and with which tools. It also includes
identifying the knowledge required to perform their assignment,
from where to find the information they need on shared drives and
websites as well as the relevant processes and policies. Also, give
them the context of the tasks you set out for them so they can
understand the bigger picture.
If another team member is required to deliver this knowledge, set
an appointment for the temporary worker’s first hour or two.
You should also clearly set out the objectives of what the temporary
worker is to achieve. This allows your temp to monitor their own
progress and creates shared accountability for their performance.
Temporary workers by their very nature hit the ground running, but
these simple steps can help ensure their productivity is maximised
from their first hour in your workplace. It also builds confidence
and competence at the commencement of the assignment, which
ultimately ensures you gain the best value from your temp.
And it seems, according to the Hays survey, employers are doing
the right thing, with 51.9 per cent saying they are treated as a
valued part of the team.
When on an assignment do your colleagues/managers
usually make you feel like:
A valued part of the team
Like an outsider
Varies from person to person
10 | Temporary Workers: A Permanent Solution?
Focus on retention
It’s positive to see that 40.4 per cent of temporary workers
say they are treated like they are integral to the success of the
businesses they work for. Only 8.2 per cent say they are viewed as
a ‘necessary evil’ by their employers.
Treating temporary workers as part of the team and imparting
the appropriate knowledge of the employer can also be a great
retention strategy. It can help encourage temporary workers to
stay around if a permanent position arises or if another temporary
assignment comes up in the future. This has obvious benefits to
the productivity of a business.
How would you rate the attitude of organisations
you worked for towards temporary workers?
Integral to their success
Mixed
We’re seen as
a necessary evil!
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