The need for Labour Brokers
Interesting Industry Facts*
The financial benefits of AMT temporary employment services
For any employer, the costs of complying with employment regulations are high as are indeed the administration functions that permanent employment of personnel demands. AMT estimates that the direct costs of utilising our services equates to approximately 10% of the costs of employing a permanent employee directly. A recent report conducted in the United States reaffirmed the value of outsourcing non-core business processes, especially HR and benefits administration. The research found that 68% of the 515 clients reported significant savings by outsourcing the HR component of their businesses including contractual responsibilities, employment tax, payroll, health insurance, retirement plans and other employee benefits.
Employment issues require substantial management time and any manager’s time is a limited resource that must be used wisely, AMT removes the responsibility and risk associated with employing temporary labour so that your human resources can focus upon revenue producing activities.
It is interesting to note that in South Africa, albeit labour brokers represent 7,6% of total employment, we represent only 0.9% of all CCMA disputes. This figure is completely indicative of how, with a structured temporary employment strategy, AMT will save your business time, money and the operational and production disruptions and challenges associated with permanent employment will be dramatically reduced.
Regulating the Industry
AMT is completely supportive of the growing momentum and lobbying to officially regulate the labour broking industry which would establish an industry standard code of conduct. Labour brokers play a vital role in creating much needed employment opportunities, with the correct management via an independent regulatory body; AMT firmly believes that such regulation will protect both employees and brokers alike eliminating less credible operators who are frequently referred to as the ‘bakkie brigade’. Employment through labour brokers makes up 7,5% of the total workforce hence banning or over-regulating the industry does not make economic sense, however ensuring there is ethical business practice regulations does.
Our Role in the Economy and Common Misunderstandings
For in excess of twenty-five years, AMT has been easing the burden of employment our companies face in the ever increasingly difficult trading conditions our economy faces as well as facilitating labour and career opportunities for literally thousands of individuals who may otherwise not have found fair and honest employment.
Employees list with AMT for various reasons, but none more so because of our ethical and steadfast commitment to equality and the rights for all human beings to be employed. In many cases, previously disadvantaged individuals do not have an understanding of local labour legislation, employment processes and statutory requirements etc. hence they will utilise the services of AMT giving them peace of mind.
Professionals and artisans utilise AMT’s services to receive training and develop skillsets and experience across a variety of industries, while our people are focusing upon advancing themselves in life, we are seeking the next opportunity on their and our client’s behalf.
A recent survey was conducted by Bloomberg. Of the 61 countries surveyed, South Africa had the highest levels of unemployment at 25%, hence temporary and contract-based employment was seen to play a vital role in creating jobs in the future.
Growing the Economy
We grow the economy by keeping abreast of labour law, International HR trends and understanding the myriad of cultures that exist in Southern Africa; for these reasons we attract International Investors into the region who require professional services to ensure the success of their projects and businesses.
Even our Government institutions rely upon labour brokers to source and supply competent qualified personnel whose credentials and abilities have been thoroughly checked. Stories of corruption and nepotism are rife in South Africa so labour broking actually facilitates higher standards and accelerates service delivery within our country.
Protecting the Worker
People, unions and the ill-informed are frequently led to believe that labour brokers take a cut of the employee’s salary and are hell-bent on reducing salaries to broker labour. This is completely incorrect. On the contrary, AMT enters into separate agreements with employers charging fair fees for our services and in order to protect the employer and ensure our clients that they have the right people for the right job, salary levels are tracked, monitored and revised in accordance with both the individuals’ performance and Government based labour legislation criteria and standards. Our responsibilities and actions actually protect the employee, rather than negate their opportunities in life, hence brokering is gaining more support from Government and the ruling party. It is interesting to note that AMT is audited by the Department of Labour (DOL), MEIBC and SEIFSA. Solving our jobs crisis is going to be a generation-long mission, it is not about political parties waving magic wands.