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WORKPLACE PLANNING FOR FLEXIBILITY:

WORKPLACE PLANNING FOR FLEXIBILITY: . STAFFING WITH TEMPORARY EMPLOYEES. WHAT IS CONTINGENT WORK?. Best understood by what it is not : Not permanent Not full time with single employer One definition:. Any job in which an individual does not have an

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WORKPLACE PLANNING FOR FLEXIBILITY:

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  1. WORKPLACE PLANNING FOR FLEXIBILITY: STAFFING WITH TEMPORARY EMPLOYEES

  2. WHAT IS CONTINGENT WORK? • Best understood by what it is not: • Not permanent • Not full time with single employer • One definition: Any job in which an individual does not have an explicit or implicit contract for long term employment and where minimum hours worked can vary in an unsystematic manner.

  3. WHAT ARE COMMON FORMS OF ALTERNATIVE EMPLOYMENT? • Temporary Help Workers • Leased Employees • Independent Contractors • Self-employed/Consultants • Part-time workers

  4. Two Legal Issues • Definition of Independent Contractor • Joint - Employer Status

  5. Tests for Independent Contractor • The Right to Control Test • The Economic Realities Test

  6. JOINT EMPLOYER STATUS • Client employer may be found to be “joint employer” along with temporary service provider or leasing company • Implication: Organization can be subject to all the rules, regulations, and liabilities that apply in the regular employment relationship.

  7. WHAT IS A JOINT EMPLOYER? • Basic criteria: When both temporary firm and client firm share determination of “matters governing essential terms and conditions of employment.”

  8. WHO WANTS TO BE PART OF THE CONTINGENT WORKFORCE? • People who want flexibility: • Working mothers • College students • People on periphery of labor market, such as newly retired • Short-term unemployed

  9. WHAT DO CONTINGENT WORKERS WORRY ABOUT? • Insecure economic future • Lack of insurance & pension benefits • Employer inaccuracy in describing & defining job assignments • Being treated like 2nd class citizens

  10. Occupational Distribution of Temporary Workers

  11. Temporary Help as a % of Total Employment

  12. MOVING FROM STRATEGIC DECISION TO IMPLEMENTATION

  13. STRATEGIC QUESTIONS What are the Strategic Goals of our organization? • What are our Core Competencies? • What is our Organizational Culture?

  14. Strategic Staffing Supporting Functions Auxiliary Skills Core Skills Primary Business Temp Staffing Core Staffing Future Needs

  15. 2 STEPS • Define what is core and what is contingent in your organization. • If a job is not core, determine if it should be performed under a regular or alternative work arrangement. • Evaluate the costs and benefits of using contingent workers relative to core workers.

  16. EVALUATING USE OF CONTINGENT WORKERS Need to consider direct costs, indirect costs, and productivity of both core & contingent workers Decision rule: The Ratio of Temporary Productivity to Core Productivity must be equal to or greater than The Ratio of Temporary Costs to Core Costs

  17. MAKING THIS WORK • Communicate with core employees • Orient temporaries • Think about: space, who answers questions, what training is needed • Be clear about likelihood of permanent hiring

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