Zero-hour contracts can work for some businesses

PEOPLE AND SKILLS: Business planning

Thi’ type of contract can work positively

The food, drink and hospitality sectors are extremely important to our local communities across Tayside, Perth and Fife, with many people reliant on employment in these sectors.

Around 9% of Tayside employment is in a sector categorised as “accommodation and food services”, according to Skills Development Scotland.

A skilled workforce is necessary and indeed vital to realise opportunities and support growth in organisations today. But with skill shortages in abundance, a skilled workforce doesn’t come without challenges.

Finding the right talent for the food, drink and hospitality sectors has always been difficult and, when seasonality is brought into the equation, day-to-day business planning is crucial. Add regular fluctuations to labour requirements and this could easily become a recipe for disaster if organisations are not able to adapt to the needs of their business operations.

Whilst the majority of organisations can maintain a regular core workforce, those involved in the seasonal business sectors cannot do so with the same ease with manpower planning changing day by day and in some instances hour by hour.

This is particularly relevant to the food, drink and hospitality industries. So what does hotel management do when a large wedding or event has been booked and additional manpower is required to assist; or perhaps a special order comes in and as the organisation cannot produce the required volume based on current staff levels, there is a requirement to hire additional staff?

The temporary labour market plays a significant role is assisting with these fluctuations. So how does this actually work for those involved in temporary positions? Some people will be recruited on a fixed-term basis where the timescale is known and definitive whereas others may be recruited to the highly controversial zero-hour contract.

Love them or hate them, zero-hour contracts do actually work - both for the recruiting organisation and also for the workers they hire.

Recent evidence from the Chartered Institute of Personnel & Development (CIPD) suggests that zero-hour contract employees experience similar levels of job satisfaction, work life balance and personal well-being compared to those people on permanent contracts.

From experience, I know that workers starting out on zero-hours often take up permanent employment with their employer.

The CIPD has also estimated the number of employees on zero-hour contracts increased from 1 million in 2013 to 1.3 million in 2015.

Whilst this type of contract has long been debated and stigmatised, zerohour contracts are becoming more commonplace in the UK labour market, with Scotland being no different.

Compliance with legislation goes without saying, therefore there is no need to fear such contracts and, in the main, they work very well for all parties concerned.

Well managed, this type of contract can work positively towards balancing a person’s working life cycle and the needs of organisations in the VUCA world of today that we have all come to know.

What is needed is a clear understanding as to what the zero contract is, how it works for both employer and worker and why this type of working arrangement may not suit everyone.

Liz Jackson is the managing director of complete recruitment and HR solutions company, Fairways. She is also the former chair of CIPD Scotland, which represents over 10,000 HR professionals nationally.