RIS­ING COSTS PUSH COM­PA­NIES TO HIRE TEM­PO­RARY STAFF

China Daily (Canada) - - LIFE -

71.9 be­lieved the la­bor cost has been in­creas­ing too rapidly.

So­cial se­cu­rity fees ac­counted for about 30 per­cent of the com­pa­nies’ op­er­a­tions cost, which has been in­creas­ing by 10 per­cent an­nu­ally due to the rise in salaries ev­ery year.

Ac­cord­ing to Wang Guisheng, man­ag­ing di­rec­tor of the China unit of Rand­stad, the world’s lead­ing staffing com­pany, flex­i­ble staffing has be­come the se­cond-fastest grow­ing busi­ness for the firm in the past fewyears, next only to head­hunt­ing.

So much so that some staffing firms have even launched new apps like Yigong­bao for flex­i­ble staffing ser­vices. “Jobs of­fered on our plat­form are not of high-end va­ri­ety though,” said Liu.

Yet, by De­cem­ber-end — that is, in four months— more than 10,000 job­seek­ers had used Yigong­bao to land temp jobs. Well-known com­pa­nies such as MUJI, Fancl and Uber place job ads for temp staff on the app.

Liu’s startup is striv­ing to sup­ply 10,000 temp staff per day to com­pa­nies and re­ceive se­ries A fi­nanc­ing by the end of this year.

Flex­i­ble staffing so­lu­tions gen­er­ate a 10-20 per­cent profit mar­gin for hir­ing firms, higher than the 1-5 per­cent profit mar­gin for tra­di­tional HR agen­cies, she said.

Wouldn’t temp hir­ing af­fect the so­cial se­cu­rity sys­tem?

“Most Chi­nese peo­ple can’t ac­cept this kind of work sys­tem. Flex­i­ble staffing ac­counts for only a small pro­por­tion of the work­ing pop­u­la­tion even in de­vel­oped coun­tries. So such wor­ries are mis­placed,” said Liu.

In Europe, the US and Sin­ga­pore, flex­i­ble staffing is in huge de­mand be­cause it pro­vides a lot of flex­i­bil­ity for em­ploy­ers, said RioGoh, man­ag­ing di­rec­tor of the China unit of Mor­gan McKin­ley, a global re­cruit­ment spe­cial­ist. For em­ploy­ees, it is very en­rich­ing be­cause they can work for one com­pany for a cer­tain pe­riod of time and get enough ex­po­sure, es­pe­cially at the in­ter­im­man­age­mentlevel.

But in China, peo­ple like to have em­ploy­ment se­cu­rity by way of bind­ing con­tracts. Top­notch tal­ents are un­likely to ac­cept a one- to six-month job con­tract, he said.

“Not all com­pa­nies un­der­stand the con­cept of flex­i­ble staffing. For some, flex­i­ble staffing usu­ally means hir­ing a re­cep­tion­ist for a six-month ten­ure or to cover ma­ter­nity leave. When some­one reaches the middle man­age­ment level or above, the com­pany won’t re­place him or her with an in­terim man­ager. But in de­vel­oped mar­kets, that is a very com­mon prac­tice,” Goh said.

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