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Contract workers, once believed to carry less value and capabilities than full-time employees, are now a viable and well-nurtured talent pool for many industries struggling with talent gaps. Sabrina Zolkifi reports.
As the saying goes, a rolling stone gathers no moss – but does this ring true in the world of contract work?With businesses across all industries and regions evolving to become more nimble in order to keep up with the pace of work, organisations are increasingly turning to contract workers to plug manpower gaps.
Among some of the employment changes that will take place in Singapore this year is the introduction of the Fair Consideration Framework, which is expected to result in higher salary levels for both permanent and contract staff.
In fact, Robert Walters’ 2014 salary survey predicted an increase in contract hires among HR professionals, “as employers prefer a flexible workforce, in particular for payroll staff and junior HR executives”.
“We look at getting the right people for the job, as most other companies do – and there are times that we have unique jobs that require contract staff to fulfil,” Atul Kholsa, vice president of human resources at Mondelēz International (Asia Pacific), says.
And there are clear benefits to employing non-permanent staff.
More often than not, if a recruitment agency is involved in the provision of the contract worker, they would be the ones in charge of managing statutory and legislative requirements, taking that responsibility off the shoulders of the hiring company.
The appeal of contract staff has traditionally always been their flexibility.
By tapping on a pool of temporary workers, companies are able to adjust their headcount in according to the current or short-term business needs.
“There are times during the year that we require extra hands on deck – such as at the end of a financial year – and the availability of contract staff allows us to get things done without committing to a long-term contract,” Chris Comer, CEO and property developer at Castlewood Group, shares.
He adds having contract staff on the payroll also frees up company resources to focus on training up and developing the local team’s skill sets.
“[It] gives you far more insight to a worker’s attitude and ability than any CV or interview would ever provide,” he says.
While Castlewood’s use of contract workers are usually for “temporary relief”, Mondelēz taps on them for a more specific role – that of a sensory panellist.
“Our sensory panellists’ job is to evaluate sensory attributes of products. Because of the nature of the job and by virtue of what we call sensory fatigue, this is not a role that can be effectively fulfilled by a full-time employee,” Kholsa says.
“By the nature of their flexibility as contract staff, they are able to effectively utilise their senses whilst testing our products and accurately provide us feedback for quality and innovation purposes.”
Kholsa calls these sensory panellists “special talent” with a different way of work from their regular full and part-time staff, as they only come into the office just three hours a day.
“We have provided them with a mix of above-industry remuneration and benefits, and make sure they are engaged and participating in all kinds of team activities or company initiatives,” he adds.
“We see them as our family.”
Michael Smith, CEO of Randstad, the agency used by Mondelēz to staff its sensory panellist roles, adds: “If you treat contractors like ‘hired help’, they will act like hired help.
“This is even more important in customer-facing roles, where the buyer doesn’t see the individual as a contract worker, but more as an employee of the host client.”
The concept of treating all employees as family is something part of Castlewood’s DNA as well.
“We regularly invite all staff to external events; for example, for the launch party of our latest project, staff were invited to the Singapore press launch and the official opening party in Thailand,” says Comer. “They all played a part in the success of the project, so they should enjoy the culmination and celebration.”
That’s the sentiment that’s probably needed to continue building and nurturing a pool of contract staff.
Comer agrees the biggest challenge with contract staff is continuity and stability, but says the key, as with regular employees, is to engage and incorporate them in the company culture.
“I see no need to micromanage – everyone should be able to stand on their own two feet,” he says.
That approach generally makes contract staff feel extremely positive towards our company, and so enjoy the work with us, making them more likely to take on a permanent position if offered.
These include coaching and development programmes, as well as an individual development plan which will help staff “bring more clarity to their own career progression within the organisation”.
“We also provide “intangible” career development opportunities like project involvement, on-the-job training or mentor/buddy sessions to help them develop functional expertise as well as leadership skills,” Kholsa says.
Ensuring staff realise the opportunities available is particularly important when taking into consideration that by design, contract staff are a very mobile and dynamic workforce.
“We monitor the progress of contract workers and if they have that X factor, we would endeavour to bring them on board as a permanent employee,” Comer says.
“We encourage an entrepreneurial spirit among staff such that they are empowered to make decisions for their role.
“We see this as an achievement and we strive to ensure that our culture echoed by top management is picked up by all, including contract staff.”
However, converting contract staff to permanent employees can be a challenge in itself.
Comer says one way leaders can manage it is to show the contract staff the benefits of a full-time position in the company.
“Make sure the process is being handled by people who are your finest and most devoted ambassadors; your walking and talking living, breathing advertisement should be oozing love, passion and loyalty for your company,” he says.
To attract and retain real raw talent, companies should focus on managing expectations and nurturing career aspirations, prove learning and development, and help employees grow with the organisation.
“Contract staff add value by bringing on board skill sets and innovation from their depth of experience from working in different environments and roles,” he shares.
As the working world continues to be more mobile and ever-changing, he expects contract work to becoming an integral part of workforces.
“For workers, quality of life is becoming far more significant, and so the freedom of contract work, providing the highest levels of flexibility between work hours and leisure time is enabling more of the population to remain working while accommodating other personal life demands,” Comer says.
“It is all changing towards a more balanced existence, and in my opinion, everyone is a winner.”
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