Australia is the 15th largest market globally for contingent workforce engagement, down from 4th in 2013, according to new research by global workforce solutions organisation ManpowerGroup.
The 2014 Contingent Workforce Analysis, undertaken annually, measures the ease of sourcing, hiring and retaining a contingent workforce relative to competing global markets. It examines workforce availability, cost, regulation and productivity and assigns a value that reflects the relative difficulty in entering one market over another.
A higher ranking indicates the country is more likely to support contingent hiring with maximum cost efficiency for the organisations, based on the productivity and quality of output by its contingent workers. Each geographic ranking should be a key consideration for organisations when planning for recruitment, expansion, forecasting and restructuring.
The contracting landscape in Australia:
- Australia has declined in terms of workforce availability (suitable candidates within the contingent workforce), though it still remains in the top 10 globally
- The overall ranking can be attributed to a decline in both cost favourability (i.e. increased manufacturing costs) and workforce availability
- Australia remains one of the most attractive regulatory markets in the world, ranking fourth
- Countries with a high regulatory ranking indicate higher levels of workforce flexibility, this, coupled with the relatively decent remuneration offered to contingent workers, highlights why many international contingent workers choose to relocate to Australia for skilled work
The global landscape:
- Hong Kong and the United States remain the highest ranking countries for contingent workforce engagement
- China, New Zealand and Singapore round out the top 5
- Singapore’s ranking has increased with contingent resources now accounting for 28% of its working population
- New Zealand has the best regulatory environment for contingent workforce engagement globally
- Australia has the highest average monthly wage in the Asia Pacific region at USD$3,993.66
If you are a global organisation, how do you compare Australia’s contingent workforce market? Have you noticed changes in the contingent workforce market in the last 12 months?