02nd Dec 2011 - Newsflash! Perms aren’t trendy
A headline we can all appreciate when used to describe the 80’s hairstyle, sported by ‘legends’ such as Kevin Keegan and, more appropriately, Bobby Ball. But not one which has been commonplace when describing working contracts in Accountancy and Finance, at least during recent years.
With more and more regulations being put in place by the government protecting the rights of the temporary worker, including the recent AWR regulations (ensuring temps are paid to the same level as their permanent counterparts), businesses are becoming more wary of the quick fix and flexibility of a contractor.
Its beginning to cost them the same, if not more, than bringing on a permanent member of staff, and what with so many candidates being immediately available and looking for permanent work, there doesn’t have to be a delay in getting someone on board.
But after KPMG published their annual report on the growth of the Finance and Accounting workforce, the surveys index shows permanent placements fell for the first time in two years down to 51.6 from 55, and in October alone the figure had reduced to 49.7.
The main reason behind this decline is the uncertainty in the strength of the economy, employers are now more inclined to take on temporary staff to allow flexibility if markets continue to slide. ‘Career temps’ are now finding many more opportunities becoming available for them and those who have been permanent for the majority of their career are finding they can actually earn more in interim assignments.
Temp-perm placements are starting to increase again which gives the best of both worlds for both the candidate and employer – instant work with a try before you buy attitude. When the markets do start to improve and permanent placements again start to get the sign off – employers already have someone there who knows the work and the business, and candidates have their foot in the door.
Trends, as ever, will change and the love for perms will return. Hopefully though, just in the workplace and not on the catwalk.
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