Buyers grow temporary labour role

4 October 2005
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05 October 2005 | Anusha Bradley

Purchasers are increasingly involved in purchasing temporary labour to help consolidate suppliers and drive down costs, according to recruiters.

More than a fifth of companies are looking to consolidate suppliers of temporary workers, and a further third intend to do so in the next year, according to a survey of 100 HR managers by Loudhouse Research and recruitment agency Adecco.

Of the businesses surveyed, temporary staff made up, on average, 6-10 per cent of the total workforce. However, 11 per cent had a temporary employee base of more than 30 per cent.

Steve Twelftree, director of managed services at Adecco, said procurement was becoming more influential in HR decisions because large companies were using more temporary workers.

The study found 40 per cent considered the growing provision of recruitment-managed services to be a positive trend.

The firms questioned had an average of seven suppliers, although 15 per cent had more than double that number. Nearly half believed valuable resources were wasted dealing with multiple suppliers.

Billy Hamilton-Stent, research director at Loudhouse, said: "Employment is a sensitive situation because there are a lot of compliance and legislation issues, which are always changing. The trend towards consolidation will affect purchase agreements and what managed service provisions are delivered against.

"That is where we can see procurement taking more of a role in the future, leaving HR to focus on the strategic issues."

SMoct2005

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