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Contracting possible solution to increasing poor employment

Published 23rd June 2015

As a result of the growing skill shortages and uncertain economy, Australian businesses are slowing their desire to hire new full-time workers. 

According to Manpower’s Employment Outlook Survey Q3 2015, the majority (76 per cent) of employers polled aren’t planning on adding to their workforce over the coming three months. In fact, just 12 per cent are in the market for employment – down from 21 per cent in Q2.

Lincoln Crawley, Managing Director, ManpowerGroup ANZ, wasn’t surprised by the results, but noted it was still disappointing. 

“Australian employers are currently facing a number of challenges, least of all the slowing of the economy, which is driving uncertainty in the market,” he said in a June 9 media statement.

“We have seen around a nine per cent increase in the number of employers making no changes; historically this figures sits in the mid-60s, so to see it at 76 per cent is disheartening.”

Change of focus

With recruitment and the economy not providing the best conditions for conducting business, Manpower believe that businesses need to look to the future and implement plans. Mr Crawley added that it is a “challenging, but promising economic environment”, so remaining ahead of the competition would be key.

“Australian employers are battening down the hatches, and to remain competitive they will need to address long-term workforce planning and embrace flexible working practices,” he noted.

“If anything the shifting economy is a chance for business to seize new opportunities. As we are seeing in certain states, diversified economies are more buoyant, and it is this model when applied nationwide that will allow Australia’s economy to remain globally competitive.”

This could suggest becoming more heavily involved with IT contractors rather than full-time employees. While businesses would still have the benefits of the skills and experience, the entire HR and payroll system is managed behind the scenes and is worry-free. This sector of employment is hot in demand, as highlighted in a recent report.

Competitive IT contracting market

According to Information Technology Contract and Recruitment Association’s (ITCRA) ICT Employment Trends Report for Q1 2015, recruiters are having trouble finding the right candidates due to the high volume of talent. 

In fact, the ratio of contractor to permanent roles has moved from 80-20 in September 2014 to 91-9 in March 2015. This suggests that businesses should be considering contractors over permanent employees moving forward.

For more information about setting your business up to manage contractors, contact the expert team at Oncore Services today.