Role of temporary work in company recruitment
Published: 11 March 2010
The Centre for Population, Poverty and Socioeconomic Policy Studies (Centre d’Études de Populations, de Pauvreté et de Politiques Socio-Économiques/International Networks for Studies in Technology, Environment, Alternatives, Development, CEPS/INSTEAD [1]) carried out a survey in 2007 on behalf of the Luxembourg Ministry of Labour and Employment (Ministère du Travail et de l’Emploi [2]). The survey results show that the more frequently temporary labour is used, the greater the number of workers concerned. Among companies that used temporary labour very frequently, more than 40% employed more than six temporary workers at a time (Figure 1). It was found that in the majority of enterprises that used temporary workers, the latter represented one fifth of their paid workforce at most.[1] http://www.ceps.lu/[2] http://www.mte.public.lu/
A survey conducted on behalf of the Ministry of Labour and Employment in 2007 shows that temporary work is an important recruitment channel for companies in Luxembourg. Between 2004 and early 2007, 42% of enterprises which had recruited stated that they had used temporary workers. About 15% of these companies do so all or nearly all of the time, while 46% do so from time to time and 39% rarely do so.
The Centre for Population, Poverty and Socioeconomic Policy Studies (Centre d’Études de Populations, de Pauvreté et de Politiques Socio-Économiques/International Networks for Studies in Technology, Environment, Alternatives, Development, CEPS/INSTEAD) carried out a survey in 2007 on behalf of the Luxembourg Ministry of Labour and Employment (Ministère du Travail et de l’Emploi). The survey results show that the more frequently temporary labour is used, the greater the number of workers concerned. Among companies that used temporary labour very frequently, more than 40% employed more than six temporary workers at a time (Figure 1). It was found that in the majority of enterprises that used temporary workers, the latter represented one fifth of their paid workforce at most.
Frequency of use of temporary work among companies (%)
Source: CEPS/INSTEAD, Ministry of Labour and Employment, Survey on company recruitment practices (Enquête sur les pratiques de recrutement des entreprises), 2007
Frequency of use of temporary work among companies (%)
Reasons for using temporary labour
The reasons most commonly cited to explain the use of temporary labour were the replacement of a worker who was on temporary leave and the need for flexibility, accounting for 65% and 63% respectively of companies that used temporary labour.
Enterprises also recruit temporary workers either as a form of preselection of personnel before giving them permanent employment (32%), or in the early stages of an economic upturn until it has been confirmed (19%).
Type of workforce
In Luxembourg, more than 68% of companies stated that they had used temporary workers for skilled labour. One third of businesses also used temporary workers mainly for unskilled labour. Generally, the jobs in question, which were often blue-collar positions, required some particular skill – such as metalworking, tiling or bricklaying.
Some sectors of activity make almost exclusive use of temporary labour for skilled positions; these include financial intermediation (85.5%), real estate and business activities (72.5%), and transport and communication (70%). Other economic sectors use both skilled and unskilled labour, such as wholesale and retail trade, hotels and restaurants, and construction. The manufacturing sector is distinguished by a relatively high proportion of companies (53%) that mainly use temporary solutions for unskilled labour (Figure 2).
Figure 2: Type of temporary workforce in companies, by sector (%)
Source: CEPS/INSTEAD, Ministry of Labour and Employment, 2007
Type of temporary workforce in companies, by sector (%)
Company characteristics
The larger a company is, the more inclined it seems to be to use temporary labour (see table).
| No. of employees | Companies using temporary workers |
|---|---|
| < 10 employees | 34.1 |
| 10–49 employees | 42.3 |
| 50–249 employees | 59.7 |
| > 250 employees | 71.6 |
Source: CEPS/INSTEAD, Ministry of Labour and Employment, 2007
Overall, between 2004 and early 2007, 42% of enterprises which had recruited stated that they had used temporary workers. About 15% of these companies do so all or nearly all of the time, while 46% do so from time to time and 39% rarely do so. However, when different economic sectors are considered, significant discrepancies emerge (Figure 3). Just over 60% of companies in construction and manufacturing had hired at least one temporary worker during the previous three years. By contrast, this was the case for only 28.8% of companies in the transport and communication sector and 32.7% of enterprises in the hotels and restaurants sector. The financial intermediation sector is consistent with the national average.
Figure 3: Companies hiring at least one temporary worker, 2004–2007, by sector (%)
Source: CEPS/INSTEAD, Ministry of Labour and Employment, 2007
Companies hiring at least one temporary worker, 2004–2007, by sector (%)
Level of competition and profile
Companies that regard themselves as subject to intense competition are more inclined to employ temporary workers than those in sectors where competition is less serious or very limited: 47% of the former enterprises hire such workers, compared with 33% of the latter.
Moreover, the better known a business is, the greater its use of temporary labour turns out to be. These results can be explained by the fact that companies that are subject to intense competition or are very well known have to respond to rapid changes in global demand and to markets characterised by pronounced fluctuation; this obliges them to constantly adapt their output and thus their workforce.
Influence of working conditions
From a descriptive viewpoint, the proportion of companies that have used temporary labour is the same (42%) regardless of whether they had arduous or difficult working conditions.
Human resource strategies
Companies most commonly use temporary labour when they face recruitment difficulties. For example, the survey showed that more than 48% of enterprises affected by recruitment difficulties relating to blue-collar positions used temporary labour, compared with 37% of businesses that had not experienced such difficulties.
Companies with a human resources management approach that generally focused on promoting quality of work also tended to use temporary workers more often. Enterprises that offered induction training, flexible working hours or career-end adjustments, or that paid higher salaries than their competitors tended to make more frequent use of temporary workers (45%) than those which did not engage in such practices (23%).
Role of cross-border workers
The higher the proportion of Luxembourg nationals in the company, the lower its use of temporary labour. Among enterprises where the proportion of resident Luxembourg people in the workforce was less than one third, about 45% had employed temporary workers.
Reference
Leduc, K., CEPS/INSTEAD, ‘Le poids de l’intérim dans les recrutements des entreprises implantés dans le Grand Duché de Luxembourg’ (847Kb PDF) [The significance of temporary work in the recruitment of companies established in Luxembourg], Population & Emploi, No. 43, September 2009.
Véronique De Broeck, Prevent
Eurofound recommends citing this publication in the following way.
Eurofound (2010), Role of temporary work in company recruitment, article.
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