WITH THE dynamics of the Australian workforce changing substantially over the past few decades, a significant development has been the emergence of the ‘contract professional’, according to a workforce management firm
WITH THE dynamics of the Australian workforce changing substantially over the past few decades, a significant development has been the emergence of the ‘contract professional’, according to a workforce management firm.
These professionals, who contract their services to a third party for a limited tenure and typically for a specific result, are a product of both the changing nature of the employment relationship and significant legislative changes, said David Little, commercial manager for Marpeon.
Typically, people entered the workforce with a ‘job for life’ mentality, where career opportunities were often dependent on biding one’s time and toeing the company line waiting for retirements or other natural causes of attrition.
“The modern landscape allows people to take a much more significant and proactive role in career planning, and compels the employer to provide greater flexibility as well as adhere to an ever increasing number of compliance issues and legal responsibilities,” he said.
The reality is that employers now compete for the services of employees, particularly skilled individuals and key personnel, who are increasingly aware of their marketability.
“The outcome of this evolution is that, whether by increased legislative requirements, a generational change in philosophies, or simply to keep pace with positive employment practices to maintain a standing of an employer of choice, employers must continually evolve and review practices to ensure compliance and relevance.”
Whether it be perhaps the flexibility or autonomy associated with this type of career, Australians have adapted to contracting in huge numbers, he said.
“On a per capita basis we are one of the leading countries in the western world regarding contractors as a percentage of the workforce.”
Current estimates suggest that up to a quarter of the Australian workforce is engaged in temporary, part-time or contract positions.
Little said this evolution has been driven not only by the individuals’ need for choice, but also because businesses require more flexible solutions to their staffing requirements such as specific projects; fixed costs; reduced administration; perceived reduced employment responsibilities; and using initial contracts with a view to permanent work.
“Whether it is a commitment to outsourcing non-core activities, reduction in employment costs or a perceived reduction in risk, contracting has evolved from piecemeal early beginnings to a major industry sector,” he said.
Certain professions attract a higher proportion of contractors, Little added. Typically contracting is more prolific in: accounting, taxation and finance (with seasonal peaks) and information technology, engineering and building (with more project-based work and variable workflows).
Many of the conventions and perceptions relating to contractors were outdated, and he said that many of the practices relating to the hiring and management of external resources were also outdated and handled inefficiently. “You may be paying for services you don’t utilise,” Little said.
“The problem for organisations in the modern era is that whilst employment models have evolved considerably since the paradigm described of 50 years ago, most legislation relevant to employment was written prior to the advent of contracting.”
The initial drafts and subsequent amendments to such legislation focus almost exclusively on traditional permanent engagement models, he said.
However, both State and Federal Governments were constantly reviewing legislation and tightening it to ensure all employees the highest standard of protection.
The new awards system implemented in Victoria at the start of the year will see all Victorian employees covered by a certain level of entitlements. This does not exclude contract employees, Little said.
