Use of temporary agency labour grows in February

Businesses turn to temporary agency workers despite upcoming legislation

New data from de Poel, the number one procurer of temporary agency labour, shows the use of temporary agency workers in the UK rose by up to 65% in February, compared with the same period last year.

Figures show that the number of hours worked by temporary agency workers increased by an average of 17.8% in February 2011, with sectors such as facilities management growing by 65% and business services by 58%.

The rise in the use of temporary agency labour comes as businesses continue to adapt to fluctuating demands using a flexible workforce.   Despite that pending new legislation, Agency Workers Regulation, in October, will affect the way many organisations operate their flexible workforce many businesses are still unprepared.  Organisations will be left exposed to hefty fines and damaging company image.

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The Agency Workers Regulations (AWR) will see temporary staff entitled to the same rights as permanent employees after 12 weeks in a job. This could incur added costs for businesses that rely on temporary agency labour during boom periods such as seasonal fluctuations at Christmas.

de Poel’s figures show a growth in temporary agency labour in sectors such as waste, retail and logistics, but a decrease in manufacturing and care.

Matthew Sanders, CEO of de Poel commented: “Temporary agency workers are continually being seen as a great way to fill skills gaps in the workforce. Therefore it is imperative that businesses across all sectors become aware of the pending Agency Workers Regulations (AWR) and what it means for their businesses.

Matthew continues; “Temporary agency workers are the backbone of UK Plc as they offer a rapid solution to market fluctuations, often filling skills gaps at short notice- especially during times of economic unrest. Although the AWR legislation does not come into force until October, organisations need to start preparations for the introduction now, otherwise there could be a huge increase in the cost of temporary labour. Consideration from businesses also needs to be given as to how they are going to place temporary agency workers within their organisation in the future to ensure they can still maintain an efficient, cost effective and flexible workforce.”

Key facts
1.    The number of hours worked by temporary agency staff increased by 17.8% in February 2011 compared with February 2010
2.    Businesses are relying on temporary labour because they are still reluctant to hire permanent staff
3.    Increase in temporary agency labour usage by sector:
a.    Waste 20.96%
b.    Retail 21.08%
c.    Facilities 65%
d.    Business services 54.18%
e.    Construction 184%
4.    Decreases of temporary agency labour usage by sector:
a.    Manufacturing  -1.35%
b.    Care -7.34%
5.    ONS employment figures are due out on 16 March 2011