Insights

Many firms are unaware as to what they are spending on temporary agency labour, where it is being allocated or how costs are being calculated.  de Poel allow businesses of all sizes to analyse and manage temporary agency labour spend through the revelation of visibility and con­trol of costs at all levels.

de Poel also cater for large firms who use a large amount of temporary agency workers to supplement their work­force in response to seasonal and market shifts. Despite regularly planning for taking on extra staff to cope with increased demand firms still incur extra avoidable costs through additional administration, legal compliance and supplier performance costs.

As the recession draws to a close and the debate on climate change is revived, UK businesses embark on projects to control and streamline internal operations as a means of recovery and efficiency-driving. Their supply of temporary agency labour is no exception. Indeed, it is one of the chief, so-called "back-office functions" targeted throughout the recession as one of the few areas with massive saving potential.

Managing temporary agency labour spend is never easy, especially whilst the recruitment industry remains unregulated.

Our report looks at three, straightforward ways to gaining control over your yearly spend on temporary agency labour, which in turn, will allow you to reduce costs in what has become a fragmented and sometimes unscrupulous marketplace.

Estimates from the Annual Survey of Hours and Earnings report show that the number of jobs paid below the national minimum wage in the UK was 242,000 in April 2010, amounting to 0.9 per cent of all jobs in the labour market.

The UK's recruitment industry has fluctuated over the past 12 months adjusting to the economic turmoil that hit all industries and organisations large and small. The industry has grown significantly since the 1990's, so too has the varying recruitment solutions that emerged to adapt with the changing needs of organisations and their HR functions. Although it supports a large number of companies, the recruitment industry remains a highly fragmented marketplace, with high staff turnover.

Building and maintaining your employer brand - how you are seen as an employer - is a challenge at the best of times. Translate this into a recession, where budgets are at best minimal, and the potential to lose presence is suddenly a big risk. Most organisations have been focused more on survival and downsizing, than on managing talent and enhancing their employer brand.

Our experience within the recruitment industry, as a neutral vendor, provides us with in depth insights into trends, forecasts and labour movement within the UK.  Recent research highlighted the difficulties facing HR in the current economic environment.  Now more than ever, HR professionals need to demonstrate their strategic role in improving organisational efficiencies and performance.  As the number one procurer of temporary agency labour in the UK and a neutral vendor partnering with leading recruitment agencies, our network and negotiation power is unrivalled within the industry.

Organisations' approach to resourcing is being affected by the present economic climate, most fundamentally by the supply and demand of labour. Most employers are experiencing changes to their resourcing budget and have to think more creatively about how to deal with the current resourcing challenges. A recent CIPD survey wanted to find out about organisations' views of the employment market and the respective changes they are making to their resourcing activities.

Most organisations are increasing their use of HR outsourcing (HRO). Over the last five years, 20% of survey respondents report significant increases in HRO activity, with 44% reporting a slight increase. Only 11% have reduced their reliance on HRO.  According to the survey HR professionals view their current operating environment as turbulent and highly pressured. They most commonly cite the pressure to enhance efficiency (91%), a pressure to enhance quality (85%) and an increasing need to innovate (82%).