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Contract Labour Cannot Solve All Your Problems

By CEO Online

Time to hire some contract staff? A leading Australian labor firm gives advice on what you should do - and should not do.

Entrepreneur Jill Clementson & Julian Barson
Company Australian Personnel Solutions
Business type Labor hire
Head office South Melbourne, Victoria
Contact details +61 3 9682 3555

Key Learning Points

Contract labor 

Do not dial for contract labor as a quick fix to reduce the bottom line or union problems. Managers who bring in contract labor are often not responsible for company profits and are focused only on their fixed costs. Make sure there is a strategic approach to bringing in contract labor that is shared by others in the company.

Contract labor management 

There is debate about whether to use contract labor for core competency tasks. To get the best out of contract labor, a company must have a strong management team and a key group of permanent employees with company knowledge. Contract labor works best when used for either long-term or short-term projects, for vacancies, or as part of a strategic plan.

Hiring contract staff 

Always check the reputation of the labor hire company. Make sure it has a reputation for sending out committed staff with good presentation and customer-service skills. Ensure your managers know how to prepare detailed briefs which list the qualities and skills required – this will give you a much better chance of getting the right person. Managers need to know how find hire staff, direct them, keep them performing, and measure their performance.

Work safety liability 

Always check the labor hire company has an acceptable occupational health and safety policy so that if someone is hurt on your site, it is very clear who wears the obligation.

Relationships with labor hire firms 

Establish a long-term relationship with the labor hire company. This means the labor hire company can get to know your requirements and strategic goals and you do not need to reinvent the wheel every time you require staff.

Responsibility 

Accept that labor supply companies are the only companies in the world where the product has its own mind. Even the best plans can go array. Understand a person coming in can not be everything to everyone. Everyone needs direction.

Relating to contract staff 

While you need to treat a worker from a labor hire company with respect, it is a mistake to develop a long-term relationship with them. The relationship is based on productivity. You are not there to improve their skills or attitudes.

Jill Clementson's Views

Over the last five years, there has been an enormous increase in the use of casual labor. And this is set to continue, predicts Jill Clementson, CEO of Australian Personnel Solutions.

However many employers harbor the fear that only devoted full-time employees can provide the level of service necessary to build a successful business. This is reinforced by management gurus on the lecture circuit who preach that casual staff and contract labor lack the commitment of full-time employees.

Clementson admits that this is sometimes the case. But she says there are ways to motivate and manage contract labor and casual staff.

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