Flexible employment holds the keys to growth

Keith Faulkner

Keith Faulkner CBE explains why temporary working is important to economic growth.

Talking to family, friends and colleagues will usually reveal that temporary work has touched many of them at key points in their careers and demonstrates in a very practical way that flexible labour is a powerful force for both growth in our economy and individual career development.

Just last month we saw clear confirmation of continuous improvement in the labour market, with many pointing to a rise in temporary work as the source.  Additionally, according to PwC, if managed carefully the flexible labour market will help to propel our economy above France to be the world’s fifth largest economy before the end of the decade.  So surely we should be celebrating these contributions and supporting their continuing development. 

Yet it’s often the case that we think of ‘temping’ in the same way as we talk about ‘dead-end’ jobs – a low paid line of work that offers no opportunity to further a career or to learn a new skill and, more recently in light of the negative portrayal of zero-hours contracts, one that leaves the worker open to exploitation.

As Chair of tempo I challenge this perception because it is not only inaccurate, it is damaging, especially when seized on and amplified by the media. It leads to pressure to curb elements of labour market flexibility that, in truth, are delivering significant economic and social benefit and should, as I suggested, be supported. I’d like to outline my basis for this assertion.

Too often temporary work is portrayed as a way in which an employer can minimise their responsibilities to part of their workforce and as a last resort for a struggling job seeker.  But when used responsibly by employers and sought by well-informed workers, it can help transform a business and open up a career. As individuals we should see temporary work as a transition – our experience strongly suggests that more people get back into (and out of) employment through temporary work than by any other single means.

More specifically, for those struggling to get into work because of barriers such as disability, a criminal record, a long period out of work while caring or homelessness temporary assignments can build the bridge into longer term employment.

The latest ONS labour force survey shows the biggest rises in self-employment status were seen in those entering the world of work (18-24 year olds) and those leaving it through retirement (over 50s) so it’s clear from an economic and employee perspective that the stigma of not having a ‘proper job’ is starting to disappear.

The responsibility for ensuring this stigma does not return lies in our methods of recruitment. For an employer in a recovering economy a contingent workforce is an important way for their business to adapt and thrive in changing times. Temporary workers help a business fill skills gaps and meet demand across both regions and sectors more reliably and cost effectively than utilising a permanent staff base or contracting out tasks to third parties.

Tempo provides recruitment agencies with the knowledge and tools to support businesses to plan their temporary help provision and to build a sustainable hiring strategy. We believe that it is not purely the cost in pounds of the contingent workforce but the level of productivity, customer service and quality that this workforce delivers that define their real value. 

With this in mind employers and hirers of temporary workers must be certain that good practice is embedded within their recruitment strategy.  The whole issue of supply chain management has become very important for businesses and their achievement of sustainable economic growth.  

When used effectively, flexible workers can help a business to grow and innovate and they should receive the same respect from employers as full-time staff (fewer or less regular hours do not necessarily translate into lower commitment). Responsible supply chain management has especially come under a spotlight for the retail sector where the employment practices and working conditions at the end of the manufacturing supply chain in some far off and impoverished country have damaged high street brands here in the UK.  

Wise business leaders should begin to wonder: “Can I look down my recruitment supply chain and find anything that would damage my business?”  We should be able to ask ourselves this question and be confident there is no worker abuse or poor regulatory compliance hidden somewhere of which we are unaware.

As Chair of tempo I am proud of our goal that, through our audit-based accreditation programme, we provide the necessary assurance that our member agencies have the genuine intent, strength of processes and quality of employee training and supervision to be reliable partners for our clients.

Keith Faulkner is Chair of Tempo, an alliance of temporary recruitment agencies, hirers and industry experts committed to raising standards in the temporary recruitment industry.