Contractors in demand during downturn

Media release                                                                                        9 June 2009

Contractors in demand during downturn

While many permanent employees are worried for their jobs in the global downturn, finance and accounting contractors are still in hot demand, according to an international survey by recruitment specialists Robert Half.

Robert Half questioned finance, HR and senior level executives in 20 countries for its 2009 Workplace Survey, asking whether the economic downturn was likely to affect the number of contractors or temporary staff their department hired.

Eighty-five percent of New Zealanders questioned said their department was likely to either maintain or increase its use of temps during the downturn – putting them on par with Brazil and the Netherlands.

Even in Ireland, the economy with the worst outlook for temps, 69% said their departments would either maintain or increase their use of temporary staff, while in Austria, the economy with the best outlook for temps, 94% of respondents said their departments would increase or maintain their use of temps.

New Zealand’s executives said the main reason for using temporary staff during an economic downturn was that they brought flexibility to the workforce. More than a third of them also saw hiring temporary staff as a possible cost-saving measure, and almost a third said that temps were able to supplement core staff during busy periods.

“Many companies are nervous about hiring permanent staff because they don’t know what the next 12 months will bring,” said Megan Alexander, senior manager with Robert Half. “But the work still has to be done and, especially with teams becoming tighter, remaining permanent staff simply may not have time to absorb everything that needs to be done.”

Hiring contractors to carry out the more mundane tasks during busy periods made sense on several levels, Ms Alexander said.

“First of all, it ensures the work still gets done, despite a reduced permanent head count. Secondly it saves the organisation money as it has to pay for a full complement of staff only during busy periods, when all those staff are actually needed.

“And finally, it helps to boost the morale of the remaining permanent staff, ensuring they do not become stressed by overwork and showing that the company values them enough to relieve them of the more mundane tasks.”

Maintaining the morale of the remaining workforce was crucial in companies that had gone through redundancies, Ms Alexander said.

“Those left behind are often feeling uncertain and anxious about their own futures, and may also feel anxiety for their former colleagues and friends who are now job hunting.

“But if remaining staff are anxious and stressed, they will not be as productive as they can be – and now more than ever companies need to maintain their productivity levels.”

By hiring temporary staff during busy times, or to fill vital roles until the economic outlook became clearer, employers could remove a large contributing factor to that stress and help to ensure their teams remained motivated and productive, she said.

The Robert Half 2009 Workplace Survey questioned more than 6100 finance, accounting, HR and executive-level managers from 20 countries, including 207 from New Zealand. It was carried out in February and March this year

Ends

© Scoop Media