RETAILERS looking to ditch temporary agency working in favour of permanent staff have been advised strongly against such measures by the number-one purchaser of agency labour, de Poel.
Those put off by demands for equal pay for agency workers could find themselves in real financial danger if they recruit too many permanent staff too quickly, says de Poel, with slow market growth, risk and uncertainty forecast for the year.
The cost-saving consultancy, who manage the supply of agency staff to Sainsbury's, the Co-op and Peacocks, believe temporary staff will continue to be "extremely valuable" in helping retailers respond to shifts and dips.
Added to this, de Poel suggests temporary recruitment is an effective and inexpensive means of bringing more young people into the industry, with temp to perm arrangements offering real opportunities for retailers to source graduates.
Reporting a 16% increase in agency staff usage among their retail clients this year, de Poel is confident that temporary agency working is helping companies to supplement their workforces during bad weather and early growth stages.
Their views come shortly after Asda announced its decision to pay agency worker's the same as permanent staff in preparation for the European AWD, due to take effect next year.
Matthew Sanders, Chief Executive of de Poel, said: "We have no doubt that there are discussions going on within the retail sector at the moment looking at whether or not companies should switch their focus from temporary to permanent employment as a means of improving their recruitment strategies - especially with all the controversy over the AWD.
"And yet, whilst we can see the benefits of more permanent staff in creating a more stable workforce, companies need to remember that we are not out of the woods yet, and temporary agency labour is going to be extremely valuable in helping companies respond to peaks and troughs in the market."
He added: "Critically, temporary working is an effective and low-cost strategy for improving retail's reputation as a good career choice and aiding the influx of young graduates into the sector - something retailers have been trying to do for a long time.
"If anything, we think they should invest more into their temporary agency labour. As well as taking a more strategic approach to procurement and operations, they need to start swatting up on the AWD, because whether we like it not, temporary labour in the retail sector is never going to be altogether unavoidable and the AWD is going to happen."
At the end of April, de Poel will be speaking at the Retail HR Summit for 2010 to discuss these issues in more depth with some of the industry's biggest players, including Clinton Cards, Marks and Spencer's, New Look and Thorntons.
"de Poel's custom made cost reduction solutions have enabled Sainsbury's to achieve cost savings of over £2.5m on our contingent workforce throughout the Supply Chain and Store Development areas of the business."
