Temporary employment was already in the midst of a paradigm shift in 2019, with staffing firms beginning to approach the engagement of temporary workers in ways that went beyond just pay.
Since then, the pandemic, energy crisis, labour shortages and the invasion of Ukraine have caused shifts in the wider world of work — notably the rise of hybrid working.
So how do these crises impact temporary employment, and how are firms engaging this talent in a hybrid-model world?
Let’s examine some of the trends in temporary worker engagement seen in the UK, Germany and Switzerland.
United Kingdom. In the UK, flexibility and skills are the top priorities when it comes to temporary worker engagement.
Lucy Sharp, chief marketing officer of staffing firm Empresaria, says the continued skill shortages across the UK have the company upskilling and reskilling workers to meet client demand and build longer-term engagement with its temporary workers.
Additionally, workers want to be able to work on their own terms, she notes. “Many people enjoyed greater freedom to work remotely and to a schedule that suited them throughout the pandemic and continue to want this level of flexibility, whether it’s in a temporary role or permanent position.”
The pandemic was not the only major event to have an impact on temporary engagement. According to Tania Bowers, global public policy director at the Association for Professional Staffing Companies (Apsco), changes to IR35 Off Payroll Working Rules in the private sector have had a significant impact on the engagement of contingent workers.
“Off Payroll has exacerbated the shortage of skilled professionals,” she says. “This has consequently decreased the flexibility and agility of the labour supply chain.” Bowers also notes that firms are now more willing to accept temporary and remote work and are seeing this as a cost-effective route to talent.
Apsco is also increasingly seeing among its members more international outsourcing contracts with independent professionals based abroad, partly due to IR35 and new, post-Brexit visa rules.
“Although this is a legitimate and sensible way for self-employed skilled independent professionals to supply services, there is the risk of disguised deemed employment if not applied appropriately and is not without risk for end clients if they are found to have failed to follow the Off Payroll procedure.”
[Editor’s note: In September, the UK chancellor vowed to repeal IR35. The legislation will no longer apply as of April 2023.]
Germany. Germany distinguishes temporary employment into two categories — employee leasing and freelance — and Bowers notes the government is working to clamp down on false self-employment.
“There has long been a registration process for freelancers, and now freelancers can seek an advance finding on status determination from the social security body in respect of an engagement,” she says. “However, this is procedural, is not timely and is not a definitive outcome if the reality of the engagement differs.”
According to Thomas André Sola, general manager of Apsco in Germany, temporary employment in the country has been changed by the increase of hybrid working; companies not offering hybrid/ remote work are hardly competitive now, he says.
Like the UK, Germany also sees the move to remote working as a cost-effective route to talent. “Temp numbers [on a white-collar level] always increase during a political crisis as the perm sector goes down,” Sola continues. “We see this happening again … In comparison to 2019, we certainly see a big increase of freelancers which are not based in Germany but working into Germany.”
Switzerland. In Switzerland, Swiss staffing economist Marius Osterfeld says while there is insecurity about the future, the labour shortage is even more severe than before the pandemic. “It’s a war of talent out there, which limits the growth of the temp industry,” he adds. “Building up trust and new ways of [recruiting] are increasingly important. … The talents have to perceive agencies as their personal coach to find the best job under the most appropriate conditions.”
According to Osterfeld, many staffing companies are also transforming employment contracts in fixed investments (permanent contracts) or directly offering permanent placements to retain workers.
As the war for talent continues, staffing firms — and their clients — have changed the way they view temporary worker engagement. As clients look to get the job done, staffing firms are sweetening the pot to deliver quality contingents.
