In This Edition...

NEWLY UNEMPLOYED

SUPPLY CHAIN

CONFEDERATION BOARD

MEDILINK AWARD

RECESSIONARY SQUEEZE

HR MAP UPDATE

20% OFF COURSE

FOOTBALL GAME

ASPIRING ENGINEERS

RACE FOR LIFE

EMPLOYEES OF THE MONTH

Wakefield
01924 241010
wakefield@jonlee.co.uk

Leicester
0116 299 4040
leicester@jonlee.co.uk

Stourbridge
01384 397555
consult@jonlee.co.uk

St Albans
01727 841101
jobs@jprecruit.com

Basildon
01268 889250
southfields@jonlee.co.uk

International
00 44 (0)800 6529801
int@jonlee.co.uk

www.jonlee.co.uk

Contractors the answer to
recessionary squeeze

The ability of engineering, manufacturing and construction companies to take on new talent has been hit, as spending freezes take effect across the board and cash flow is managed more closely than ever. However, all is not lost for those unable to get appointments signed off by the board. Contract workers have long been popular as a way to fulfil short-term needs, but now the concept is coming into its own in response to the recession.

There are a number of benefits to employing contract workers. Firstly, the recession means that there is now a healthy supply of contract workers available for short-term assignments; from working on a specific project to covering maternity leave.

Many of those permanent employers who have been made redundant over the past year or two are now more willing to consider short-term contracts, as making ends meet becomes harder and a full-scale recovery remains elusive. The benefit to a potential employer is that many of these people are highly skilled and experienced candidates who, prior to the recession, would not have been available for this sort of work.

Organisations in all industries can benefit from making the most of the transferable skills available. For example, people who once worked in the automotive or construction industries can bring invaluable experience to the table in other industries, often bringing innovative processes and procedures with them. This is especially relevant in fields like procurement or project management.

A second major benefit is that the employer doesn’t take on employment liability when recruiting contractors. Instead, the agency supplying the contractor will take on all liabilities and responsibility for administering and providing payroll, holiday pay, National Insurance contributions and insurance. This means that the cost of every appointment is transparent and fixed and doesn’t add to the company’s administrative costs.

This leads on to the third benefit. Contract workers allow companies to keep close control of cash flow - allowing them to decide how often they pay for the extra labour. If they need to increase or decrease contractor hours then this can be done at short notice, plus the duration of employment is not fixed and can be terminated without penalty – giving hard-pressed organisations the flexibility they need during these unpredictable times.

An additional benefit is that if a contractor performs well and the organisation decides it would like to make the arrangement permanent, then this can be done very easily. In this way, using contractors is an excellent way of identifying top talent.

It is not just employers who gain from contract workers. The arrangement also benefits employees who are struggling to gain employment during the recession. It is also a great way to gain experience and knowledge, especially if the role is in a different sector to what the contractor is used to. If a contract worker can prove themselves as a valuable addition to the company then there is always the chance of a permanent position or at least a referral elsewhere.

Companies are undoubtedly feeling the pressures of this recession but despite budget cuts and freezes, the majority still need to recruit good people to keep the business running successfully. Contractors are an ideal way to recruit quickly, without long-term risk and at a fixed and manageable cost. Call David Powers on 01384 446132 to find out more.

david.powers@jonlee.co.uk