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Assignment on Article
HRM301, Section-02
Group list:
NAME ID
Faiza Haque 0820319
Faria Rashid 0820257
Tarzana Khan 0830084
Anupa Mustafiz 0830264
Submitted to
Amlan J. Haque
School of Business
TEMPORARY WORKERS
Temporary workers are hired to assist employers to meet business demands yet allow the employer
to avoid the cost of hiring regular workers. Sometimes, it is the expectation of the employer that if
the temporary worker is successful, the temporary workers will be hired.
Most frequently, though, hiring temporary workers serves a business purpose for the company and
the objective is to hire temps rather than taking on the cost of a regular workers. Business purposes
include: seasonal customer demand, temporary surges in manufacturing orders, employees on sick
or maternity leave, and short-term, clearly defined work such as a census worker.
Temporary workers allow employers to maintain a cushion of some job security in employment for
regular workers. The temporary workers can be let go first in a business or economic downturn.
Temporary workers work for part or full-time. They rarely receive benefits or the job security
afforded regular staff. A temporary assignment can end at any time depending on the employer’s
needs. In other ways, temporary workers are often treated like regular workers and attend company
meetings and events.
Temporary workers are hired directly by the company or they are obtained from a temporary
staffing agency. If an agency provides the temporary workers, the employer pays a fee over and
above the compensation collected by the workers. Temporary workers, who work through an
agency, may have paid benefits such as health care insurance. These workers remain the worker of
the agency, not the workers of the company where they are placed.
The UK has the highest number of temporary workers in Europe. There are 1.3 million temps
working the UK; that’s around 5% of the UK workforce. In countries such as Germany and
France temp employees make up around 1% of the workforce. Temporary workers have always
played an important part in the workplace, and yet they have often lagged behind in terms of equal
benefits. New plans outlined by the government should see the equal benefits and rights issue
addressed but not until 2011.
According to the Bureau of Labor Statistics, there were approximately 1.2 million temporary help
agency workers in February 2005. Last year alone, temp agency jobs increased by 205,000.
The use of temporary help has enjoyed an upward growth ever since entrepreneur William Russell
Kelly opened the first temporary staffing agency in 1946. Like most present-day agencies; its
positions are no longer limited to secretaries and file clerks. Temp workers currently possess a
myriad of other titles including: accountants, financial officers, assembly line workers, nurses,
doctors, scientists, lawyers and information technology professionals.
Agency Worker
Agency workers are big business; indeed, the turnover of UK employment agencies supplying
agency workers was £22.8 billion in 2003/2004 (REC, 2005). Agency workers are classified as
temporary workers as their tenure within a company is for a limited period of time. However,
unlike other temporary workers who are employed in a two-way relationship by those they work
for, agency workers are characterized by a triangular relationship involving the employment
agency who hires them, the organization they work for, as well as themselves.
Morale Issues
Morale and employee relations problems can arise when employers have temps working alongside
permanent workers for months, doing the same work and putting in the same hours, but not
receiving the same benefits afforded their permanent employee coworkers.
Safety Issues
Certain types of jobs are inherently dangerous and require careful safety training. Studies show
that frequency and severity rates of on-the-job injuries are significantly higher with temporary
workers. No matter what a temp’s experience is, care must be taken to see that dangerous tasks are
performed safely. It should not assume a temporary worker is fully prepared to work unsupervised
until employer have taken the time to see that they can safely perform their work tasks.
Legal Concerns
Recent court decisions have highlighted the fact that businesses must be careful how they contract
for temporary staff. There must be no doubt about the workers’ status and about the lack of
eligibility for the benefits of permanent workers, and treat temporary workers with the same
respect and care would be needed for permanent staff.
Many temporary workers are employed with organizations for years without achieving the same
rights as permanent staff. Under the new government plans any temporary worker who has been
employed for 12 weeks will receive the same rights as permanent employees. Equal rights for
temporary staff will include holidays and pay and other conditions afforded to permanent
employees. Employee benefits such as childcare and transport services through employers will also
be included in the new government plans.
There are still many employee benefits available to permanent staff that temporary workers do not
receive. Maternity leave, adoption leave and paternity leave are not presently available to
temporary workers. Employee benefits such as access to on-site gyms and crèche facilities are not
always available to temp workers. Many employers do recognize the importance of temporary
workers and do not restrict them from using such facilities. The new government plans should
mean that these facilities, benefits, and perks are a right for all temporary workers.
Recruitment agencies are one of the biggest employers of temporary workers in the UK.
Recruitment agencies already provide their workers with a number of employee benefits and perks.
These benefits will differ between the agencies but will usually include accrued holidays, holiday
pay, and sick leave. Employees who are considering using a recruitment agency should always
compare agencies to ensure they receive the optimum benefits.
Temporary workers will be entitled to information on permanent vacancies under the new
government guidelines. This will mean temporary workers are given the same rights to apply for
permanent vacancies within their workplace. All of these new benefits and rights are only planned
for agency workers who work for more than 12 weeks at a company. Workers who are self
employed, do not use recruitment agencies or work less than 12 weeks have not been figured into
the government plans.
Pension schemes have often been a sticky point for temporary workers. The government plans
exclude pension schemes from the new directive. The government does say that temporary
workers will be covered by the Pension Act 2008. This means that in 2012 temporary workers will
qualify for pension schemes and employers will have to make contributions to the pension. Some
recruitment agencies do actually have pension schemes set up for their employees.
TURNOVER
Turnover is becoming a serious problem in today's corporate environment. The employment
culture is changing as well. It is now relatively common to change jobs every few years, rather
than grow with one company throughout the employment life as was once commonplace. In
addition, employees are increasingly demanding a balance between work and family life.
What is Turnover
In a human Resources context, turnover or labor turnover is the rate at which an employer gains
and losses employees. Simple ways to describe it are "how long employees tend to stay" or "the
rate of traffic through the revolving door." Turnover is measured for individual companies and for
their industry as a whole. If an employer is said to have a high turnover relative to its competitors,
it means that employees of that company have a shorter average tenure than those of other
companies in the same industry. High turnover can be harmful to a company's productivity if
skilled workers are often leaving and the worker population contains a high percentage of novice
workers.
High turnover often means that employees are unhappy with the work or compensation, but it can
also indicate unsafe or unhealthy conditions, or that too few employees give satisfactory
performance (due to unrealistic expectations or poor candidate screening). The lack of career
opportunities and challenges, dissatisfaction with the job-scope or conflict with the management
has been cited as predictors of high turnover.
Low turnover indicates that none of the above is true: employees are satisfied, healthy and safe,
and their performance is satisfactory to the employer. However, the predictors of low turnover may
sometimes differ than those of high turnover. Aside from the fore-mentioned career opportunities,
salary, corporate culture, management's recognition, and a comfortable workplace seem to impact
employees' decision to stay with their employer.
There are many reasons why good employees quit and go to another company, perhaps even to
competitor. Most of the reasons start with management and most are preventable. Good
people don't leave good companies, they leave poor managers.
• Management demands that one person do the jobs of two or more people, resulting in
longer days and weekend work. This turns into a morale killer not only for the person but
for the team.
• Management doesn't allow the rank and file to make decisions about their work. Therefore,
employees see their job as only a job rather than developing enthusiasm and pride of
ownership.
• Management doesn't take the time to clarify their decisions. For example, it rejects work
after it was completed, damaging the morale and esteem of those who prepared it.
• Management alienates staff by promoting someone who lacks training and /or the
necessary experience to supervise. This leads to employees to feel management shows
favoritism and so why do a good job?
• Management promotes departments to compete against each other while at the same time
preaching teamwork and cooperation. Therefore, employees become cynical and only put
effort in what they see management wants not what they say.
• Management throws a temper tantrum, points fingers and assigns blame when things go
wrong. Therefore, employees don't want to be at the other end of the barrage of negativity.
As we are working on unscheduled turnover of temporary employee we have find more specific
reasons associated with management behind turnover of temporary employee before
scheduled date:
1. Inadequate Socialization: Most of the temp is young enough and relatively new in job
and often they prefer contract works as their first job. So inadequate socialization makes
them feel new comer and give a boundary to seek information in order to work. That
creates dysfunction and misperception. New comers have a strong need to know
organization’s culture, expectations from them within boundaries to work soundly.
Inadequate socialization doesn’t allow them to receive and convey actual information.
Now here we are going discussed some negative effects of employee turnover:
Hiring Process
The effects of hotel employee turnover result the high price of recruiting, interviewing and hiring
new workers, in addition to lost productivity.
Actual Cost
The U.S. Department of Labor estimates that it costs about 33 percent of a new employee's salary
to replace the worker who left. This means major companies can spend millions of dollars a year
on turnover costs.
Lack of Staff
High turnover rates can create a lack of staff to complete essential daily functions of a company.
This can result in overworked, frustrated employees and dissatisfied customers.
Loss of Productivity
New employees take some time to get up to speed, particularly in complex jobs.
Customer Dissatisfaction
For service-oriented careers such as account management and customer service, high turnover can
lead to customer dissatisfaction. Newer representatives lack expertise and knowledge, and
customers have no way to build a relationship with one particular service representative.
The success of any organization depends on the ability of managers to provide a motivating
environment for its employees. Motivated employees are more productive, happier, and stay with
the organization longer. One of the primary tasks a manager faces is to find out what motivates
their staff. By understanding employee needs, managers can understand what rewards to use to
motivate them.
Motivating people is far from an exact science. There is no secret formula, no set calculation, and
no work sheet to fill out. In fact, motivation can be as individual as the employees who work for
you. One employee may be motivated only by money. Another may appreciate personal
recognition for a job well done. Still another may work harder if she has equity in the business.
Matching the right job with the right person will further help to motivate employees. An employee
who feels mismatched with their job will feel frustrated and motivation will decrease. Many
individuals express frustration in performing the same responsibilities repeatedly. The ability of a
company to structure career planning programs, including job rotations, skills training, and project
management assignments are of interest to many employees. Providing immediate recognition for
a job well done is most rewarding. This will likely ensure work to continue to be good throughout
the day, week, or month. If recognition is only given at specific times, employees will only be
motivated closer to the time the recognition or reward is expected.
This strategy can help to ensure a short-term employee is happy to return to work for a particular
company for future projects. Offering good employee incentives to this section of a workforce can
also help to maintaining an organization’s reputation. The quality of the employer is what it comes
down to. As a business, organizations want to uphold their reputation and to do what they have to
do to ensure their employees deliver the company's values through their work.
But organizations often make the mistake of setting up separate reward systems for contractors and
permanent staff, resulting in a misalignment of objectives between the two groups."
One issue for organizations in charge of multi-agency projects to consider is what type of incentive
strategy to offer short-term workers. Employers need to understand the psychological contracts
these people are working on. Even if someone is going to be there for only a few months, things
can be done. Employers can offer a bit of training, so the employee's skills are being developed.
There are things they can do to make them feel part of the workforce.
It is about both recognizing contract staff will have different expectations and also being as fair as
possible, so people feel valued. Employers should also be prepared to deal with the concept of
fairness, Employers may have to deal with issues like resentment because often, consultants that
are brought in get paid more than their bosses, or they may want access to flexible benefits.
12. Be sincere
Employees are adults and they can tell when employers are sincere or not. Astute employees look for
patterns of behavior. If they surmise that employers are unfair and insincere, that will be the first step to
their leaving and looking for other opportunities. Give sincere praise and honest feedback to motivate
employees. Take a few minutes to let employees know when they have done a good job. Good feelings
come from these acknowledgements and the same good feelings motivate employees to repeat behaviors
that bring about compliments and high productivity.
The award for employees should not given based on what employers like or what employers want
15. Be flexible
Learn to be flexible will help to reduce turnover. Today's generation is trying to learn how to integrate work
and family. Help make that happen. It should be stopped watching the clock and watch production. If the
employee is meeting the timeline and producing quality work, reward them with some flexibility on work
hours and vacation time when needed.
Turnover costs for many organizations are very high and can significantly affect the financial
performance of an organization. Direct costs include recruitment, selection, and training of new
people. Much time and expense go into this process. Indirect costs include such things as increased
workloads and overtime expenses for coworkers, as well as reduced productivity associated with
low employee morale. Estimated costs vary from organization to organization, some as low as a
few hundred dollars to as high as four times the annual salary of the employee.
Many surveys say that the number one issue facing business is finding and keeping good
employees. Nationally, the average annual employee turnover rate for all companies is 12 percent.
In our 1996 Wisconsin study, we found that 75 percent of the demand for new employees is simply
to replace workers who have left the company
It has been estimated that, on average, it costs a company one-third of a new hire's annual salary to
replace an employee. Therefore, at minimum wage, the cost to replace an employee is estimated at
$3,700.
The impact of turnover has received considerable attention by senior management, human
resources professionals, and industrial psychologists. It has proven to be one of the most costly and
seemingly intractable human resource challenges confronting organizations. This paper provides a
summary of information, abstracted from published research, on the costs of turnover, factors
contributing to its magnitude in organizations, and proposed remedies.
Analyses of the costs associated with turnover yield surprisingly high estimates. The high cost of
losing key employees has long been recognized. However, it is important for organizations to
understand that general turnover rates in the workforce can also have a serious impact on an
organization's profitability, and even survival. There are a number of costs incurred as a result of
employee turnover. These costs are derived from a number of different sources, a few of which are
listed below.
HRM systems consisted of important function like payroll, work time, benefits administration,
recruiting, and performance record. Temporary Staffing practice is suitable for organizations that
need additional and dedicated resources for immediate project requirements. HRM provides
strategy to firms that helps to develop few strategies those are contained some rules and regulation
for temporary workers to reduce temporary employee turnover.
Though our focus is temporary staffing HR provides services such as trainings, employee
satisfaction survey, compensation benchmark survey and employee verification etc.
Functions of Human Resource Management
Human Resource Management involves the development of a perfect blend between traditional
administrative functions and the well-being of all employees within an organization. Employee
retention ratio is directly proportionate to the manner in which the employees are treated, in return
for their imparted skills and experience. A Human Resource Manager ideally empowers inter
departmental employee relationships and nurtures scope for down-the-rung employee
communication at various levels.
Every organization now has an exclusive Human Resource Management Department to interact
with representatives of all factors of production. The department is responsible for the
development and application of ongoing research on strategic advances while hiring, terminating
and training staff. The Human Resource Management Department is responsible for:
A vast literature exists on the determinants of employee turnover, long considered an important
outcome for both individuals and organizations. Most of this research has focused on individual-
level variables, such as employees' satisfaction with their jobs and their organizational
commitment. The organization-level human resource characteristics are also significantly related
to the overall turnover in firms, expecting higher turnover in organizations control systems than in
those with commitment systems. Temporary and contract workers are a key part of the labor
market, giving employers flexibility without permanent contracts.
HRM practices influence employee skills through the acquisition and development of a firm's
human capital. Recruiting procedures that provide a large pool of qualified applicants, paired with
a reliable and valid se- lection regimen, will have a substantial influence over the quality and type
of skills new employees possess. The effectiveness of even highly skilled employees will be
limited if they are not motivated to perform, however and HRM practices can affect employee
motivation by encouraging them to work both harder and smarter. Examples of firm efforts to
direct and motivate employee behavior include the use performance appraisals that assess
individual or work group performance, linking these appraisals tightly with incentive com- pension
systems, the use of internal promotion systems that focus on employee merit, and other forms of
incentives intended to align the interests of employees with those of shareholders can reduce
employee turnover.
The HR strategy perspective suggests that the effect of turnover level on organizational
performance depends critically on the nature of the context or system in which the turnover occurs.
System characteristics can be seen as affecting the performance impact of a number of the
predicted consequences of turnover.
Give thought to the specific jobs you assign to temporary employees. Determine how much
time will be required to train the temp to complete the job successfully. For short-term
temporary employees, select jobs that require little training.
Although temporary employees may have specialized related work experience .there will
always be a need to spend time teaching them how to do things "your way." Not every job
should be customized for temporary employees, particularly those related to final quality
analysis.
• Recruit Specifically
There is an abundance of agencies ready to supply your need for temporary employees.
Many provide employees with a highly specialized background No longer can you expect
to simply get help with your clerical needs, but you may also request an engineer,
accountant, trainer, or production line worker.
Temporary agencies agree that the more specific you are in the initial request, the greater
their success level in providing the best qualified employee.
• Interview
Many supervisors have learned that making the time to interview potential temporary
employees, particularly those who will be employed for longer projects, is time well spent.
The more the temporary employee knows about your expectations, and the more you know
about the temp's previous work experience, the greater the likelihood that there will be a
good match.
One manager (whose entire team consists of temporary employees tilted to complete a
short-term project) knows from experience that she will interview twice as many temps as
site ultimately selects. She feels that this step saves her time later. However, in that those
employees she selects are far more likely to be successful, reducing the need for further
recruiting later in the process.
• Orientation
Give careful advance thought as to what needs to be expanded in order for the temporary
employee to be successful. Determine what you will cover in training, and who will be
responsible for completing the training. Ensure that the person conducting the training is
both thorough and patient.
If safety is an issue, make sure that the temporary employee is briefed and understands
potential safety hazards.
Think back to the day you first started your job and you'll agree that first impressions arc
extremely important. They can't be erased Plan accordingly. The start of any day, or shift,
can be hectic .When appropriate, have the temp start later, allowing you more time to begin
the orientation and introduce the regular employees to the temporary employee
In UK, seemingly little legislation covered temporary workers in the UK up until recently. During
the 1980s and mid to late 1990s, temporary workers were afforded protection against
discrimination on the basis of sex, race, disability and trade union membership. However, these
workers did not have any protection against unfair dismissal or redundancy rights, which meant
they could be dismissed relatively easily, even after working for an employer for many years. UK
legislation governing temporary workers were:
The Employment Agencies Act (1973) governs employment agencies and businesses that supply
agency workers and permanent workers to third-party employers (updated by Employment
Relations Act (HMSO, 1999a).
The Rehabilitation of Offenders Act (HMSO, 1974) and Northern Ireland Order (HMSO,
1978) allows for the rehabilitation of individuals who have been convicted for an offence (ex-
offenders) after a given period of time.
The Sex Discrimination Act 1975 (amended by the Sex Discrimination Act (HMSO, 1986) and
the Employment Act (HMSO, 1989)) prohibits direct and indirect discrimination against women
and men on the ground of sex and marital status.
The Race Relations Act (HMSO, 1976) (amended by the Race Relations Amended Act 2001),
prohibits direct and indirect discrimination on racial grounds (color, race, nationality and ethnic or
national origin).
The Trades Union and Labor Relations Consolidation Act (HMSO, 1992) makes it unlawful to
discriminate against an individual on the basis of their union membership or unwillingness to join
a trade union.
The Disability Discrimination Act (HMSO, 1995) makes it illegal for employers with fifteen or
more employees to discriminate against existing or prospective staff for a reason relating to their
disability.
The Employment Rights Act (1996), introduced the concept of “worker” as opposed to
“employee” extending some employment rights to temporary workers (revised by the Employment
Relations Act (HMSO, 1999b)).
Working Time Regulations (HMSO, 1998) stated that a worker’s working time shall not exceed
an average of 48 hours for each seven days.
The National Minimum Wage Regulations (HMSO, 1999c) approved the minimum wage for
temporary workers.
The intended equal rights and employee benefits for temporary workers will include:
A recent survey claimed that if these laws do go through, as many as two thirds of employers
would cut back on the use of temporary workers. Undoubtedly these new laws may make
employers think twice before taking on a temporary worker. But for the 1.3 million temporary
workers in the UK it does seem like a step in the right direction towards equality within the
workplace.
IN CONTEXT OF BANGLADESH
While temporary employment is a fast growing work option, there's both danger and opportunity
in the growing numbers of short term employment relationships. Ideally, temporary engagements
offer the employing organization lower costs and increased flexibility. In turn, temporary
assignments offer an individual variety and growth. The organization's benefits can prove elusive,
though, if temporary employees are less skilled or less committed to their work. And the
employee's benefits come at great cost if temporary workers become a wandering underclass in the
labor pool.
Bangladesh is not different from this flow. Temporary employment is popular among young
generation. There are many sectors available where temporary workers are needed significantly.
Sectors are; Teaching profession, IT sector, Banking, Call centre profession, Business sector,
Medical sector and most importantly migrant as temp worker.
Bangladesh is developing country. It has a vast population. But 80% people are poor as well as
illiterate. They are not eligible to have a good profession like; teaching, engineering, corporate job
neither this kind of jobs are matched to them. They can’t have even their own business. So people
decide working as temporary worker being migrated to overseas or other countries. These people
are not skilled and literate. They have to face a lot of problems but still they are working for better
survival. They don’t even know their employee rights, benefits, facilities they should have. So they
are being oppressed by employers. They are being treated valueless on the contrary they are being
used for having betterment of organizations, industries.
As of 2006, expatriate workers' remittance flows were four times greater than Official
Development Assistance (ODA) and eight times more than Foreign Direct Investment (FDI). The
importance of the migrant workers and their role in the development of Bangladesh is not lost on
policy-makers, with increased attention being paid to other temporary migration mechanisms such
as those offered through the Temporary Movement of Natural Persons (TMNP) of the WTO's
General Agreement of Trade in Services (GATS). An understanding of the challenges to, and the
potential gains from, increased temporary migration is thus imperative for Bangladeshi policy
makers.
With the World Bank recently describing migration as the third pillar of globalization, alongside
trade and capital flows, it is no surprise that policy discussions on migration and its impacts are
gaining importance in Bangladesh. From a few thousand in the 1970s, the number of Bangladeshi
migrants has exploded to a gross figure of more than three million by 2002, with about $23.7
billion being sent back in remittances over that period.
Between 70% and 80% of migrant workers from Sri Lanka and the Philippines to Arab states are
women, and 60% of female migrants from Bangladesh were employed in the region between 1991
and 2007, according to the report. It added that these women now face harsh conditions. Many are
heavily indebted when they leave their home countries, and others experience sexual abuse by their
employers or are kidnapped by human traffickers. Conditions are expected to become harsher for
even the employed migrant workers as they try to hang on to their jobs, and undocumented
workers are among the most vulnerable and might accept almost any circumstances to hold on to
their jobs. Desperation for work may lead to migration under unsafe conditions, sexual exploitation
and increased vulnerability to HIV infections.
• Language problem
• Health Problem
• Exclusion from society
• Less wages than labor
• No facilities
• Learning skill problem.
According to a recent research the call center outsourcing market reached $19.5 billion in revenues in
2005 and is likely to reach $20.1 billion in the course of 2012. The outsourcers are also under
increasing demands to do more than just increase efficiencies. Clients expect outsourced call centers to
improve retention, and reliability as well. These days, companies look during vendor selection process
is political stability of the location. They will certainly make sure that the location is in a politically
stable place for doing business at ease.
Though as Bangladesh from this perspective needs to work hard to prove that the company will get 100
per cent support from the government and leading political groups, the Bangladeshi organizations
entering into successful call center outsourcing relationship requires a major time commitment.
The prospects of this industry very new to Bangladesh, Bangladeshi companies initiated joint venture
with USA and India to open up training academy in collaboration with Call Center School, the leading
for the professional development of individuals in the Call Center industry. Many foreign companies
invest call centre business to use temp worker as outsourcing.
Call centre are a great opportunity for working as temporary worker. But here temp are facing few
problems than permanent workers.
As time passing away, necessity of this department getting higher and higher. Employees (permanent,
temporary, governmental, nongovernmental) of Bangladesh of any working sector do not get all facilities as
their working level, hours. They are not being treated as assets, most of the time they are mistreated.
To have more skill, knowledge on work for temp is nothing else but cost where permanent employees are
not sent abroad through most of the organizations. Even they are sent to abroad they are not asked about not
to worry about their family. A person only can work in peace when he/ she have sound mind. Leaving
dearer nearer one away no one can work in sound mind.
To sort out these kinds of personal problems those could become hindrance to work can be sort out by
taking help of HRM. As temporary employees are relative new to any organization, so before work they
want to have sufficient information about their assignments, employer and environment of the organization.
Lack of information creates problem among employer and employee which can be removed with help of
HRM.
To change the view of organization to temporary or permanent worker HRM department is highly needed.
HRM department can sort out all problems, needs wants of temporary employee as well as permanent. Now
let’s take a look what can do HRM for temporary employee:
Bangladesh Ministry of Labor and Employment has taken few steps for migrant temporary worker of
Bangladesh with country like UAE, Malaysia, India, Sri-lanka, Australia. Hope these step will surely lessen
the problems of migrant temp workers and turnover of temp worker.