Contractors need to review their working styles as blue-chip
companies re-evaluate their staffing levels, according to new
research commissioned by Alexander Mann Solutions (AMS).
The Global Contingent Worker Poll, conducted by
independent research company Loudhouse, on our behalf, examines
professionally skilled or senior level contract workers perceptions
to employment in the coming year. Contractors working in the UK,
Hong Kong, Singapore, Australia and the US, were surveyed to gauge
how the temporary worker market is coping with the current economic
situation.
Only 11% of contingent workers see their contracts getting
extended over the next 12 months, with just 12% expecting a rise in
pay. 50% of respondents believe the number of positions available
will reduce in 2009, with 41% expecting the competition for roles
to increase as more jobseekers enter the market. Contractors are
bracing themselves for an uncertain future, but changing workforce
planning indicates opportunities for those willing to adapt. A more
strategic look at the use of the contractor workforce in many
bluechip companies is seeing new opportunities open up, as
businesses look to target skills gaps.
Matthew Rodger, Director at Alexander Mann Solutions says,
“Contractors have enjoyed a favourable few years where they have
been able to command a premium for their services. Times are now
changing. Today, companies are managing their contingent workforce
more tightly, for shorter spells, often on a reduced cost of
ownership. Contractors are realising this and changing the way they
operate by recognising the importance of good brands and changing
the way they assess contracts.”
The poll found that the most significant factors when
considering contracts are pay (76 per cent) and industry sector (75
per cent). The size of the company, although still important, was
rated bottom with a mere 20 per cent. Interestingly, almost half of
those surveyed also stated that the reputation of a potential
employer’s brand to be important or very important.
Findings point towards two types of contractor workers the
‘stability hunter’ and the ‘brand buddy’.
Stability Hunter: The
original contractor would primarily seek better pay and longer
contracts as their main objectives, snubbing companies with a
higher quality reputation who pay less and offer shorter contracts.
This wasn’t previously an issue due to the positively buoyant
marketplace, however the poll results indicate that these contracts
are becoming few and far between.
Brand Buddy: The new breed
of contractors acknowledge the importance of having good brands and
respected companies on their CV. These modern contractors use big
brand employer reputations to leverage their next contract. With a
lot of companies feeling the pinch and not wanting to take risks
when hiring staff, permanent or contract, the use of familiar
brands provides assurances of a contractors capabilities and
experience.
This split in profiles represents something of a sea change with
regard to how contract workers are adapting to economic conditions,
with many now building their own brand as the competition for
contracts increases. Rodger continues, “The contractor marketplace
is becoming more competitive, as the economic climate tightens.
This is a positive thing for employers as the contractor talent
pool is widening. Organisations can benefit by having a clear
understanding of how contractors are used, whilst strategically
reviewing their use to identify where skills are needed to drive
business goals. Contingent workers enable companies to manage their
resourcing needs both up and down. Contractors need to adapt to
these changing work practices to meet new business demands.”
“For employers, this means greater flexibility in matching the
right contractor to your resourcing needs. The employment landscape
is constantly evolving. In recent months Alexander Mann Solutions
has seen conditions beginning to balance out once again with more
flexible, brand strong contractor talent available. This combined
with a strategic review of contractor use means a more effective
use of contingent workers going forward,” said Rodgers.
Billy Hamilton-Stent from research agency Loudhouse comments,
“Contractor employment is often an early indicator of wider
employment trends. Respondents are evidently experiencing a
tightening of available work in the market, leading to a greater
number of professionals pursuing fewer contracts. The expectation
is also that pay rates and rises will cool. However, the desire for
some employers to introduce greater levels of flexibility into the
workforce during economic uncertainty may favour professionals
working on a contractors basis.”