Over the past decade, British manufacturing has become increasingly hi-tech, resulting in more standardised working hours and better conditions of service for employees. The sector is huge and encompasses a wide range of industries, including: food and beverages, process manufacturing, aerospace, automotive, pharmaceuticals, chemical industry, biotechnology, chemical industry, clothing and footwear, electrical equipment, electronics, metals and engineered metal products.
One of the most popular service models for temporary agency labour is a vendor neutral model such as de Poel which ensures a fair and unbiased agency selection process.
Further challenges presented themselves as to cope with the recession, many agencies began cutting corners on worker-checks, manipulating pay to candidates, and upping their margins, indeed 6 recruitment agencies were fined a total of £39.27m, by the Office of Fair Trading (OFT) for price-fixing and the collective boycott of another company, leaving retailers open to further high costings, legal exposure, and workers vulnerable to underpayment.
The use of temporary agency workers will continue to play a pivotal role within retail but with tight employment legislation and pressures to improve health and safety, the need to improve control of their temporary workforce will increase during 2010.
Retailers must improve their control and indeed cost of the temporary workforce, which is often fragmented if they are to be successful during 2010.
The decline in the UK's manufacturing industry has accelerated in recent years and without doubt has contributed to the number of medium-sized companies going to liquidation as well as having an adverse affect on transport and distribution.
Industries will emerge from the recession at different times and varying paces but all will face increasing pressures to accurately project costs, including resource. The use of a temporary workforce will cushion any risk by deferring such commitment until future uncertainties are resolved and confidence is strengthened. It is therefore not surprising that a temporary agency workforce is emerging as a strategy that can play a critical role during the economic recovery for the manufacturing industry.
Demand for industrial and blue-collar staff fell rapidly in 2007, 2008 and most of 2009, with the number of vacancies in the sector falling by around 40% but still totalling 19% of temporary placements. This was partly due to the slowdown in the economy, as well as the decline in industrial activity and the outsourcing of many lesser-skilled jobs abroad. However, in the latter quarter of 2009 there were signs that some jobs in the manufacturing sector were being brought back to the UK as the costs of sourcing abroad began to increase.
Manufacturing consists of a wide range skill sets which encompasses the use of machines, tools and labour to make things for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users - the "consumers".
Manufacturing companies utilise a sizeable amount of subcontractors and temporary agency workers, normally 19% to complete projects with strict deadlines.
There are approximately 10,000 agencies operating in the UK, with no recruitment agency owning more than 4% of market share. As well as being fragmented, the recruitment industry is largely unregulated, which means many of the 10,000 recruitment agencies in the UK do not comply with legislation, this particularly concerning for the manufacturing industry were health and safety process need to be adhered to.
Manufacturing companies use multiple agencies across all elements of production to book their temporary agency workers, with numerous recruitment agencies on board, manufacturing companies are often unaware of the wide range of pay rates, fees and terms and conditions, making it an expensive and often challenging area of the business to manage and control.
Perhaps the most beneficial aspect of using temporary agency workers is its flexibility and responsiveness. Workers can be provided by agencies quickly, as and when they are required. This is particularly useful for manufacturing companies who need to adapt immediately to supply and demand dedicated by the economic climate. The need for specialist skills will vary according to demand and the use of temporary agency workers accommodates such requirements.
"Since City Link implemented the de Poel solution in June 2008 it has delivered benefits to the organisation on many levels. From the initial discussion, through data analysis and implementation to ongoing account management City Link has been delighted with the de Poel offering."
