IS THE TEMPORARY RECRUITMENT MODEL BROKEN?
The temp sector is currently far too disparate to the frustration of both hirers and contractors.
Although the growth of job sites has taken recruitment online, the industry has hardly been transformed by the digital revolution. That's according to TempRocket’s Founder, Andrew Johnston.
Speaking to Recrutiment Grapevine, he believes there is a huge gap in the market for a model that puts those hiring, first.
"Sites like TotalJobs, Monster – and even LinkedIn to some extent – have added to the market rather than changing it. As a recruiter, you still pay to access potential candidates, and even if it is less than you’d be charged by an agency, you are less certain of being successful," he says.
"So where are the disruptors like those that have been throwing other sectors into chaos, like travel, transport, property and retail?
"The temporary side of the recruitment market is particularly inefficient. Temps are the life-blood of the public sector, especially in education and healthcare, as well as in the private sector in industries such as construction."
"Temporary workers can also provide the manpower on a short-term basis to enable small and medium-sized businesses to grow."
"Yet the current temp process is frustrating for both hirers and contractors, while agencies would also benefit from better connectivity and communication between all parties – and on a global scale.
"If you need temporary staff, your requirement is usually pretty urgent. Either you’ve just lost an employee in an important position who needs to be replaced as quickly as possible, or you’re responding to a spike in demand. Either way, time is of the essence. Essentially, you need a top class temporary replacement – and fast – or your business suffers. Likewise, contractors and freelancers can’t afford to be out of work for long, plus they need to plan and control their schedule, which can be tough to balance against their work demands.
"Currently, the best solution for both parties is a temp agency, but there are lots in the marketplace, so which do you choose? Often both hirers and contractors take time and effort registering with several, then try to keep tabs on them all. Beyond the time this takes, which delays the whole process, hirers are also charged a significant amount for the ser-vice. In particular the public sector tends to get stung financially, with schools and hospitals frequently having to pay a premium – which is ultimately passed on to the taxpayer.
"Under these circumstances, agencies hold all the cards – and quite rightly. But they too would gain from a more joined up process, where they get a broader view of the whole UK – or even global – market in one place, from hirers to candidates. This would potentially enable them to reduce their overheads, while also allow them to promote their services to a bigger audience. And it goes without saying that contractors would also benefit. They’d be able to find and book work across a wide range of sectors within seconds, meaning they’d gain greater control of their schedule without complications.
"Hirers ultimately pay the market rate for temporary staff, but sometimes the amounts they are charged might suggest that there is a temp shortage. The reality is, however, that the UK is booming with contract workers, with 46% of HR professionals expecting at least one in five of their workforce to be contract or temporary workers by 2022 [PwC]."
"So the problem is not one of supply and demand, but rather the way the industry works – or doesn’t depending on your perspective."
Johnston argument essentially stands as, hirers need more choice both in terms of direct access to temporary candidates and with respect to agencies. "If they feel that an agency is charging too much for a candidate, they should be able to challenge the cost, and another agency should be able to come in with a keener offer. This would be proper market forces at work," he says.
SOURCE: Recruitment Grapevine