News

The contracting sector in Australia is experiencing continuous growth. According to government figures, approximately 40% of the USA workforce is currently made up of contingent workers, and this is predicted to reach 48% by 2020. (By now you will have heard of the Gig economy, a term which refers to the growing number of workers abandoning traditional 9 to 5 employment in favour of working independently on a task-by-task basis for various employers)

Australia’s contingent workforce is predicted to reach 25% over the same period. Data from the Australian Bureau of Statistics also shows Australia is embracing part-time employment, with over 80% of all new jobs created in the past twelve months being part-time. The HR market is no exception to this trend and as a leader in this sector, we’re beginning to notice that contract and part-time roles are becoming more commonplace. The clear benefits for companies employing people on a contract or interim basis extend beyond the ‘try-before-you-buy’ cliché. Organisations are increasingly finding more reasons to utilise contractors, ranging from the simple need to get talent in the door quickly, to new hiring policies focused on hiring contingent workers.

Source of Demand

Hiring contractors can address the demand for flexibility and agility in rapidly changing business environments and adapting to the need for flexibility can bring about a similar change in the approach to managing resources; scoping or testing new positions, potential plans for growth, pending restructures, or unconfirmed mergers or acquisitions. So, uncertainty isn’t always a negative. It can also stem from positive change, which in turn can result in real career-shaping opportunities for HR professionals, even within short-term assignments.

Organisations and hiring choice aren’t the only reasons for the increased demand in contracting within the HR employment market. HR professionals at all levels are showing a keener interest than ever before in contracting vacancies, as they too are looking for flexibility and career-enhancing moves. As the quality and nature of the work within the contract sphere has become more interesting, these roles are capturing the attention of high calibre talent within the HR industry. Skilled people are now seizing contracting opportunities and agree that roles are progressing their careers through gaining exposure to a variety of different industries and projects. Contracting also gives many professionals a window into different HR models and cultures that they wouldn’t have had the chance to directly experience on a permanent basis.

Debunking Myths

There is a range of commonly accepted myths associated with contracting, the first of which is that contracting always pays more. While it’s true that contracts can sometimes pay more than permanent roles, generally speaking contracts tend to pay a market rate similar to what you would be offered for the same level of role in the permanent market. It’s also not impossible that people find themselves accepting lower rates of pay than a permanent position, especially if it’s a particularly short-term role.

Another incorrect popular belief is that contract roles are easier to obtain than permanent positions. Although the recruitment process for contract roles can be faster when there is a strong alignment between role requirements and available talent, this doesn’t mean that clients are more open-minded to broadening their criteria. The requirements for contracting can often be tighter and more rigid than a permanent hire, as there is no room for any learning gaps. With contractors, there is often a requirement for immediate credibility within the business and expectations to deliver straight away, usually without much support. There may be an unspoken expectation that the contract will be extended or even become permanent, which means a good candidate needs to be aligned to the role long term and at the same time able to deliver in the short term. This can make hiring a suitable contractor a far more challenging process than it might first appear.

Summary

The contract market is maturing and evolving at a rapid pace, and contracting is becoming a highly desirable employment option for organisations and candidates looking for flexibility. The interim and contracting HR market is further embedding itself into the fabric of the Australian workplace, shaping candidates’ careers and changing the very essence of employment as we have traditionally known it.