These businesses are looking to contract workers to plug shortage gaps

Though the recently reported “Santa shortage” is sure to fill the most festive among us with no small amount of dread, the shortages could well be similarly widespread across other industries this holiday season.

According to a recent study from Robert Half, as many as 53 per cent of Australian business leaders are planning to hire contract staff this summer (strictly from 1 December 2023 to 3 January 2024) to help meet seasonal work demands and staff shortages. Though the vast majority of surveyed business leaders (79 per cent) expect to be able to find the talent they need, this leaves more than one-fifth expecting to fall short.

Contract workers make-up just under 10 per cent of the employed population in Australia and can be defined as independent employees who are hired for a specific project or over a certain time frame for a defined fee. Employer demand for contract workers, said Michael Page, is only growing.

For many businesses, the holiday season is among the most important periods, meaning that staff shortages could have major implications. As noted by CNBC, many major companies rely on the Christmas period for more than 30 per cent of their annual revenue.

“The employment market is recalibrating during the holiday period, and companies are making opportunistic, selective hires to ensure they bring in the strongest talent,” said Andrew Brushfield, director at Robert Half.

Vacation deprivation

The extent of staff shortages could be higher than expected as an unusually high proportion of workers are projected to take leave over January 2024, according to Robert Half.

Vacation deprivation rates are similar to those experienced towards the end of COVID-19 lockdowns in 2021, meaning employees are likely feeling the time-off itch. January comes in top place as the peak month to take annual leave, holidays, flex time, and long-service leave, and this coming January will likely be no different.

Which roles are companies trying to fill?

Though shortages are likely to be widespread, not all industries will be affected to the same extent. The survey asked a range of business professionals which roles they anticipate will be most in need of contract filling. Firstly, surveyed chief financial officers answered the following:

1. Payroll (27 per cent)
2. Financial reporting (25 per cent)
3. Budget and analysis (24 per cent)
4. Finance and financial planning and analysis (17 per cent)
5. Tax and treasury (17 per cent)

Next, chief information officer and chief technology officers named the following positions as most in need of filling:

1. Security, privacy and compliance (26 per cent)
2. Software and applications development (24 per cent)
3. Cloud architecture and operation (22 per cent)
4. Network and systems administration (21 per cent)
5. Project and program management (17 per cent)

Finally, general hiring managers pointed to the following:

1. Data entry (25 per cent)
2. Customer service/call centre (25 per cent)
3. Account management (21 per cent)
4. Logistics (18 per cent)
5. Front desk/reception (16 per cent)

“Opportunities abound in the holiday period for contractors who are nimble, and particularly for those who hold stellar analysis and reporting skills in finance, security, and privacy knowledge in the technology sector, and data entry and customer service skills in the business support industry,” said Mr Brushfield.

Though the suitability of contract work will depend on the nature of the relevant business, Michael Page suggests employers of contract workers can reap the following benefits:

• Find and onboard employees quickly.
• Fill temporary skill shortages.
• Adapt to changing market needs.
• Trial new employees or positions.
• Complete projects efficiently.
• Give employees shorter notice periods.
• Protect your bottom line.

According to Mr Brushfield, contract work should be approached purposefully and with mind paid to the suitability of such an arrangement in light of the work needed: “Before hiring contractors, employers should carefully assess their needs, the nature of the work, and the potential benefits and drawbacks to ensure that it aligns with their overall workforce strategy.”