Wednesday, February 24, 2010

To Temp or To Contract? Whatever Shall I Do?

Temporary Worker: Can also be known as a seasonal worker, contingent workforce, a person hired for a temporary possibly undefined period of time but typically used on a short term basis to augment a busy period, vacation period, project, maternity leave or increased but temporary workload driven by projects or production.

Contractor: A role or position offered to a specific worker utilizing specific skills for a specific period of time. Industries that are well known for contractors are IT, Engineering, Drafting, Graphic Arts.

Not all Job seekers are looking for that permanent full time role where they can spend their work days until retirement. Some of us love the flexibility and challenge or learning opportunities presented to us in a constantly fluctuating world of work or perhaps we need this free form of employment to accommodate other worldly passions. We may be caregivers to aging parents, new parents returning to the work force, what ever situation you might be in it seems that these two options can be very attractive. Unique employment relationships or "non-standard" employment relationships such as part time, working with employment (temporary agencies) or contracting are actually pretty standard in today's business world.

My many years of working within the staffing industry has shown me that virtually everything I touch, use or work with has been built by, administered by or serviced by a temporary worker somewhere along the way to market. It is pretty amazing when you stop and think about that. The toothpaste you use each day, the cell phones we talk on, the car we drive, the packaged foods we consume, beverages, the call center you argued with this morning, guess what? All of them utilize a temporary workforce to get their products to market. In a 2009 survey conducted by the Ontario Provincial Government while exploring the options of Bill C139 (which I will address later), discovered that over 700 000 workers in that province held temporary jobs through agencies. In the US that number of temporary workers is substantially magnified.


The Business Case for Non-Standard Employment

Contractors and temporary workers augment an existing workforce within a company. These workers come in ready to work during busy peak times of production and enable deadlines to be met. These roles may also back fill a permanent workers vacation time which is common for office workers as well as fill in during sick time, maternity or personal leaves.

Advantages to these types of temporary or contract roles can be really great for you for a number of reasons such as:

- A temp role can get your foot in the door of an industry or company you want to work for

- It is an excellent way to re-enter the job market after an absence such as maternity leave, school or travel

- Temp work offers incredible flexibility so if you are seeking that work life balance that enables you to go to school, care for loved ones because you are choosing when you want to work you can.

- You can move job opportunities fairly quickly and with great flexibility because you do not need to give much notice.

- You can travel and work at the same time! Some of the best temp workers I have had the pleasure of working with were recent post secondary grads that came to Canada for a work/ski vacation time through the SWAP program.

- Experiment with different roles and industries without the full commitment until you decide what you want to do.


There are some disadvantages to be mindful of as well in the contingent/temp world of work. Pay rates can be up to 40% lower in this form of employment as compared to actual salaries paid within a company to permanent workers. The hiring company has flexibility to end your assignment at any time which can open a can of worms regarding pay in lieu of notice or severance. Your employment agency is on the hook for this if you qualify for that pay out. Vacation pay as well as statutory holiday pay may also come into question for you. Taking your own vacation time may be a challenge because you are there augmenting a busy or already short staffed work force. Many temporary workers have expressed frustration to me over the years because they have felt pulled in multiple directions listenting to the employment agency rules or direction as well as the hiring company. They have felt powerless in this three way relationship.

The heart of the business case or reasons why temporary agencies are used by corporations of all sizes are the incredible cost savings. Yes, cost savings! Lower salaries are built into the bill rates for your work. Hiring managers do not need to concern themselves with worker's compensation insurance, cost of fringe benefits such as your vacation pay, medical/dental benefits, paid sick days, paid vacation time not to mention the incredible paperwork during tax season. Companies that employ temporary workers do not incur legal responsibility because those temp employee names never appear on their payroll. Many times as a temp or contract worker, your pay rate is fixed and there is seldom room for further negotiation around that. It is what it is.

A Brief Comment About Bill C139

I am far from being the "Subject Matter Expert" regarding this bill soon to be potential law when passed in the Province of Ontario but I will tell you it is going to have some profound and sweeping changes to how temporary workers and their agencies do business. In fact, this bill once passed will likely see a migration across the country to other provinces.

This bill was born out of difficult economic times where highly paid workers were downsized and began to look at returning to former work sites as temporary workers perhaps or other places of employment. Due to the fact that temps do not receive paid sick time, vacation pay in some agency environments (not all), workers felt they were not working in a fair or equitable environment. They were working beside permanent employees who did receive all of the benefits and pay so you can only imagine how this would feel. Employers say they require a flexible labour force but some of these temp workers have actually worked on their sites for quite a long period of time. If these long term workers were hired permanently, the cost of benefits and of course the legal responsibility would shift from the agency to themselves.

Another sticking point with Bill C139 addresses is the charging of fees between agencies and employers to hire, convert or process a temporary worker from agency payroll to the permanent job. Temp to perm fees or these administration fees can prevent a business from making the hire due to budget or policy. Another concern is that after a six month stretch of employment or more, why is a fee necessary other than profit to the agencies bottom line since the cost of recruiting the temp has surely been paid off months ago.

At the end of all of this, Bill C139 in a very general statement is trying to address the definitions and employment terms between the tripod relationship of temp, temp agency and company that pays for the service. It attempts to clarify these relationships and create fair, equitable and reasonable work practices for all workers regardless of the temp/perm debate.

Resume Tips To Attract Temp Recruiters Attention

In another blog I will address the whole topic of agencies, how they work and the hot ticket, how to make them work for you. One of the ways you can ensure that your resume stands out and attracts the attention of a temp recruiter is to make sure you focus specifically on your core competencies, your achievements and your personality. Recruiters need to be aware of your hard skills immediately so they see the fit with their client group. Be sure that you mention your software skills and work experience. Lay it all out clearly and concisely. Temp recruiters will use you for their immediate opening so they need to understand your capabilities fast.

One little trick that I loved but drove me crazy at the same time was to see a resume of a job seeker listing every company that they ever worked on temporary assignment for. I loved this because I instantly understood the types of environments they fit into and the type of work they enjoyed. It was a great marketing gift as well because I saw where my competitors were staffing. I also cringed because I knew this market intelligence from my group of temporary employees was out there for my competitors to see as well. Oh Well!!!

Good luck and happy hunting! Your next career is just waiting for you to take it on!