Challenges in the temporary work market: the future of employment requires an innovative approach

The temporary work market, which plays a key role in the global economy, is currently facing new and unique challenges. As economies evolve and technologies and employee expectations change, temporary recruitment companies face new tasks to which they must find answers. Piotr Rafalski, CEO of Formika Temporary Employment Agency, comments on the situation.

Market volatility
On the one hand, there is a noticeable increase in demand for flexible employment models that allow companies to adapt to rapidly changing market conditions. On the other hand, employees are increasingly seeking greater stability and job satisfaction, which challenges temporary employment agencies to find a balance between flexibility and providing decent employment conditions.

Added to this are the high demands of temporary agency clients who are struggling in their industries.
"Volatility in the temporary work market is a daily occurrence. Employment agencies have to be highly flexible and keep up with changes in every industry they serve. These changes in times of transformation are many, from legislative to process and technology. This, among other things, is also the reason why the temporary work market is shrinking in Poland and agencies are increasingly competing for clients or closing down their operations," says Piotr Rafalski of Formika Agencja Pracy Tymczasowej.

At the end of 2022, there were 8791 employment agencies operating in Poland, including around 5400 on the temporary work market. In comparison, in 2021 there were 9286 in total, which means a decrease of 495. Since 2021, we have also observed a cyclical decline and deceleration in demand for temporary work (around 2% to 3% year-on-year). Data for this year is not yet available, but further declines are to be expected.

Digitalisation and new skills
As technology advances, the labour market requires new applications from employers and new skills from employees. Temporary employment agencies now need to adapt their recruitment and training processes to provide temporary workers with the skills they need to perform in the modern business environment.
- Technological implementations i.e. automation, robotisation are becoming commonplace in logistics and industry. This places certain demands on employees, who must have the right skills to work with modern equipment. Many times, this problem is thrown at employment agencies, who must ensure that the employee is trained and properly inducted into the workforce. On the other hand, digitalisation is encroaching on recruitment processes to optimise and speed them up, thus adapting them to the rapidly changing business environment, explains Piotr Rafalski of Formika APT. - Responding to these needs, based on our own experience of several years, we have built the EAC Solution platform, which simplifies the recruitment processes of temporary employees, reducing their recruitment costs by up to 60%. This innovative platform is a base adapted to the changing technological environment, as well as to the times of searching for savings and optimisation. It serves manufacturers, logistics operators and also FMCG companies," adds the CEO of Formika Temporary Employment Agency.

Multicultural teams and diversity
The latest data from the Central Statistical Office (analysis entitled 'Foreigners performing work in Poland in 2022'), show an increase in the number of foreigners on the Polish labour market. At the end of December last year, there were more than one million foreign workers in our country, which is 27.3% more than a year earlier. The share of foreign workers in the total number of employees was 6.5%. Foreign workers represented as many as over 150 countries. The most numerous groups were Ukrainians (approximately 73%) and Belarusians (10.1%). The CSO analysis also shows that the median and average age of foreigners (37.4 years) was lower compared to Polish employees (42.6 years).

"The ability to manage diversity is a necessity today, especially with regard to temporary workers coming to us from other countries, often with different cultures. This is quite a challenge for employers. It is fair to say that many companies, especially manufacturing, retail and logistics companies, are still not ready for this. More often than not, communication, which is managed skilfully by three people, fails, and hardly anyone takes care of this area of business. This is a huge challenge for the labour market and especially for temporary employment agencies, which have a dual role here. Not only do they have to prepare employees for their deployment, but also the employers themselves how to manage and communicate in cultural diversity," explains Piotr Rafalski, owner of Formika Agencja Pracy Tymczasowej.

A new era
These are just the main challenges of today's temporary work market, and there are many more. The temporary labour market is entering a new era that requires an innovative approach to hiring and managing employees. The decline in the number of employment agencies, the increase in the employment of foreigners and the seasonal fluctuations in the demand for employees require innovative and flexible solutions for both employers and recruitment agencies. Job stability and a focus on long-term relationships with employees can become key elements for success in the changing temporary staffing market.

Author: Formika Agencja Pracy Tymczasowej