June 2012.pdf - RCSA

BUSINESS MANAGEMENT ISSUES
working, a large number of individuals
choose on-hire work over salaried direct hire
work because they know they will be paid for
each hour they work. It allows them to tailor
their working preferences to their lifestyle
needs.
The Institute of Public Affairs points out that
the age groups with the highest proportion
of workers in so-called “insecure” work
arrangements are younger workers and
older workers, who are often entering the
workforce, or beginning their exit from it.
RMIT University research found that 67 per
cent of on-hired employees chose to work
as an on-hired employee and 34 per cent
prefer this form of work over permanent
employment.
The most important reasons for choosing
on-hired employment are diversity of work;
to screen potential employers; recognition
of contribution; and the payment of
overtime worked.
RMIT University research also found that
half of all on-hired casual employees employed
by RCSA members are immediately placed in
another assignment following the completion
of their initial assignment. That is, they enjoy
“back to back” assignments without having
to search for new work like those engaged
in direct hire casual employment.
Labour market efficiency
and regulation
The RCSA is not making a case against
industry or labour market regulation altogether.
In fact, the Ciett research shows a clear
correlation between strong, efficient labour
markets and regulation of private employment
agencies. However, this regulation needs to
be appropriate, and balance the flexibility
requirements of businesses and government
with the need for greater certainty in
employment among sections of the
Australian workforce.
A country’s labour market efficiency is based
on its employment and unemployment
rates, hours worked and participation rates.
Countries such as the UK, USA, Australia and
New Zealand have seen private employment
agencies develop rapidly, in the context of an
open regulatory environment and liberal
economy, and labour market efficiency is
significantly higher in these countries. This is
especially apparent when comparing these
countries to highly-regulated countries that
favour security over flexibility – particularly
Western and Mediterranean Europe.
The more liberal employment markets
are also more competitive globally, BCG’s
analysis reveals. The message here is that
labor market regulation needs a balance
between both flexibility and security, to
ensure that it supports economic growth,
rather than hindering it.
What is the recruitment industry’s
role
Providers of on-hire or agency work –
as represented by the RCSA’s members –
already play an important role in providing
flexibility and adaptive capacity for both its
clients and its workforce.
However, the RCSA continues to focus on
ways to improve its support of non-traditional
workers, and ensure they can, amongst
other things, work safely, have opportunities
for career advancement and access training
and development.
The RCSA is also working with members
to collect more data on the industry and its
role in the economy, to help inform policy
decisions. It needs to educate stakeholders
about the true nature of adaptive work, while
helping workers to make the most of a flexible
career, whatever their reason for undertaking
it. A constructive discussion about the role of
adaptive and flexible working arrangements
in Australia can only be had with unbiased
data taken from a genuine sample of the
entire Australian workforce.
Conclusion
There are two key questions that underlie
the Secure Work campaign: do all workers
want permanent, full-time jobs And would
businesses hire permanent, full-time
employees if on-hire workers weren’t
available The answer to both questions is
no. Our economy needs businesses and
government to be adaptable through the use
of flexible labour, and our workers need a
range of options that fit with their increasingly
versatile lifestyle needs.
Recruitment firms provide businesses and
government with fast access to talent, while
delivering a broad range of job opportunities
to individuals. This is a crucial part of a modern,
functioning and competitive economy.
References
http://securejobs.org.au/get-the-facts/
Brennan, L. Valos, M. and Hindle, K. (2003) On-hired
Workers in Australia: Motivations and Outcomes
RMIT Occasional Research Report. School of
Applied Communication, RMIT University, Design
and Social Context Portfolio Melbourne Australia
Brennan, L. Valos, M. and Hindle, K. (2003) ibid.
Adecco Temporary Labour Report 2012
Institute of Public Affairs, Insecure Employment
Occasional Paper, John Lloyd, March 2012
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RCSA JOURNAL