Temporary workers new reality for Canadian companies.

Canadian companies are contracting out more work to temporary or contractual workers according to The Conference Board of Canada's recently-released report Contingent Work: Trends, Issues and Challenges for Employers. The report is based on a survey of 87 human resource executives from medium

Globalization and technology are changing the workplace and how we work. Contingent workers are one key way for companies to attain labour flexibility and acquire special expertise on an as-needed basis says Pat Booth, author of the report and Associate Director of the Board's Centre for Management Effectiveness. But she adds that this raises new issues for human resource personnel who must now include workforce flexibility in their planning processes. '

According to the survey, 57 percent of the major companies contacted have increased their use of contingent workers over the past two years, and most expect to rely even more heavily on them in the future. Yet most companies have no formal policies for dealing with this growing contingent workforce. "The findings suggest a real need for organizations to look at the impact and implications of their contingent work arrangements from two critical perspectives: strategic workforce planning and organizational effectiveness," says Booth.

While companies say that using contingent workers has given them greater labour flexibility and access to special expertise, employers are struggling with a number of issues that revolve around how to best manage this more flexible workforce. "Management must now grapple with new issues," says Booth. "All the rules are changing. Worker loyalty and commitment becomes a real concern, as do legal questions such as who constitutes the employer in a contract/subcontract situation." One thing is certain, however, it is important for organizations to ensure that contingent workers know what is required of them.

"Smart organizations are harnessing the power of their contingent workforce," says Booth. "They realize that seeking strategic solutions means hiring people to do work rather than filling jobs." Ultimately she says, successful companies know how to capitalize on their contingent workforce and support rather than impede the process.

The Conference Board of Canada is an independent, not-for-profit applied research institution whose mission is to help our members anticipate and respond to the increasingly changing global economy. We do this through the development and exchange of knowledge about organizational strategies and practices, emerging economic and social trends and key public policy issues.

Joan Milne, P. Mgr., RMP Executive Director