Abstract
The use of temporary workers in organisations is for different reasons such as cost-savings
and improvement of the flexibility of the workforce. The choice of using temporary workers
instead of regular or full-time workers is driven mainly by the desire for competitiveness and
success. Business organisations are willing to use temporary workers as efficiently and
effectively as possible to achieve and maintain their competitive advantage. However, not all
the companies using temporary workers are achieving competitive advantages. This
research investigates the effective use of labour brokers by an engineering company. The
aim is to find out the truth about the matter and make recommendations that will help the
company utilise temporary employment services (TES) efficiently and effectively in order to
compete successfully in the market.
A qualitative research design was followed as a data collection technique or data analysis
procedure that helped in the generation of data for the research. One-on-one interviews
were conducted with four temporary workers placed in the company by the labour brokers
and five workers who were placed by the labour broker but who have recently been
employed permanently by the company. In addition a Human Resources (HR) Manager of
the company was also interviewed about using the labour brokers’ and the reasons for
choosing to use them. The Manager representing the labour broker supplying the company
with workers was also interviewed.
Having searched and carefully studied literature, and conducted research on the identified
engineering company a conclusion was reached that the company sources all types of
workers from TES to fill in vacancies left by permanent staff as well as employees who are
temporarily absent from work due to illness, maternity leaves and other short-term absences.
In addition the company is paying short-term employees the same rate as long-term
employees. These employees also enjoy overtime work at the same rate, the shift
allowances, and the inconvenience allowance like their permanent counterparts.
However, temporary employees sourced from TES do not have all benefits that are enjoyed
by the permanent workers such as medical aid, housing allowance, transport allowance,
retained services allowance, and company-based rate of pay for all weekly-paid staff.
TES pays the employees that are sourced to the company with the money that the company
gives to it depending on hours worked and the rate of pay per hour. TES charges the
company a levy for their employees. This levy depends on the rate of pay of the placement...
M.Com. (Business Management)