When she completed a one-year contract as a secretary in August,
Ms Brenda Ang looked forward to securing a permanent job.
But the 41-year-old had no such luck despite a three-month
search. Instead, she will start work tomorrow as a team
administrator in a multinational company under a five-month
contract.
'I was looking for a permanent job but, under current
circumstances, it's very tough, even though the economy's picking
up,' she lamented. She lost her permanent job last year when her
expatriate boss returned home.
Her situation is not unique. According to a Ministry of Manpower
survey whose findings were released last month, the number of
term-contract workers rose to 197,200 as of June.
That was a 4.3 per cent jump from the same period last year, and
made up 12.7 per cent of the total number of Singaporeans and
permanent residents employed.
The duration for most of the jobs was less than three months.
Such jobs soared 21 per cent from 72,200 last year to 87,400 this
year.
In contrast, the number employed on a permanent basis went up by
only 0.8 per cent over the same period.
Human resource companies are not surprised, noting that the
economic crisis has made term contracts a more flexible - and less
costly - hiring option.
One such employer is the local office of printer manufacturer
Lexmark, which has a dozen short-term workers among its total staff
of about 100.
Said Ms Jennifer Loh, HR director for Lexmark Asia Pacific: 'We
do not know when the economy will pick up but there's still work to
do, so using temporary workers is the way to tide us over and see
what the outlook is.'
HR firms have fielded many calls from clients for contract
workers. Take the case of Career Trend, which offered 36 per cent
more term-contract jobs as of October this year compared to the
same period last year.
Another firm, Achieve Career, had up to 15 per cent more such
jobs on tap.
Mr Joshua Yim, chief executive of Achieve Group which manages
Achieve Career, noted that many companies in a downturn have the
unenviable task of sacking staff.
'They do not want to get into such problems so contract
agreements are the best arrangements for them. If the situation
doesn't get better, they can let these people go without strings
attached. It's easier administratively and costs less.'
Term contracts also offer employers a way to get around hiring
freezes. HR companies report that they themselves sometimes hire
term-contract workers who then report for work at their clients'
offices.
These people do not appear on the payroll of that company which
pays the HR firm a fee for such services.
Term-contract jobs can last anywhere from a month to two years,
with the option for renewal.
Some come without benefits like bonuses and medical or insurance
coverage, but will dangle a premium of about 10 per cent above the
salary for a similar permanent post.
Others provide varying forms of benefits for the same wage as
that of a permanent employee.
These jobs cover all industries, from pharmaceutical and banking
to information technology and property. They are mostly executive
or junior management positions.
Those responding to such job offers are mostly in their 40s and
have been retrenched, or are seeking something new.
Fresh graduates would rather wait for something better to come
along.
Yet, Ms Lynne Ng, regional director for HR firm Adecco, said
term-contract jobs offer a chance to get a foot in the industry and
to network. These jobs can go on for many months or years, and have
become an acceptable way of working.
'As the world of work rapidly changes, more employers are
looking at operating flexi workforces,' she said.
Agreeing, Mr Declan O'Sullivan, managing director of HR firm
Kerry Consulting, said many contract positions get converted into
permanent ones too. These jobs may also pay better and help a
person chalk up experience.
'In terms of job security, there's not much difference because
it is relatively easy to dismiss someone - temporary or permanent -
here,' he noted.