Shifting economies and temporary agency labour
A few weeks ago we looked at the CIPD’s predictions for the next 20 years in procurement. We’ve looked at the role technology plays in the procurement of temporary agency labour and at how risk will affect the market, this week we discuss the dreaded economy.
Whilst emerging markets pose problems to procurement professionals in material purchasing functions; it’s the market at home which will impact those buying temporary agency labour. High levels of unemployment are generally beneficial to those who require a blue collar contingent workforce, but for those in need of a skilled workforce it can be more difficult.
As business confidence fluctuates the needs and demands of businesses do too – making it very difficult to predict peaks and troughs in activity and therefore manage workforces effectively. Often recruitment is one of the first budgets to be cut, resulting in a headcount freeze or a reduction in permanent staff. In turn this leads to a reliance on temporary agency workers, which can result in unexpected increases in cost.
Whilst it is difficult for even leading economists to predict how markets will react to global events, procurement professionals can gain clear visibility of their temporary agency labour spend provided they have the correct technology in place. The management information provided by electronic systems can be vital to understanding how a business can react rapidly to market fluctuation through the use of a temporary agency workforce. The ability view on demand, and therefore forecast, spend is imperative to budget management in shifting economic times.