Thu, Sep 22, 2005 - Page 10 News List

Demand for temps increases: analyst

SAVING COSTS Local employers are increasingly turning to temporary workers in an effort to ease the financial burden of pension reform, a human resources company said

By Jessie Ho  /  STAFF REPORTER

Demand for temporary workers, or temps, has been rising among Taiwanese companies after the passage of the new Laborer Pension Law (勞工退休金條例), which was implemented in July, a human resources company said yesterday.

According to a survey conducted by the 104 Job Bank (104人力銀行), 30.3 percent of enterprises outsource part of their operations or contract temporary workers as a means to reduce the added costs incurred by the new pension law.

Companies in Taiwan are now required by law to set aside 6 percent of an employee's salary for a pension fund, after the new pension law came into effect on July 1.

The survey of 5,011 effective samples (including 4,311 individuals and 700 companies) was taken between July 25 and Aug. 1, and had a margin of error of 1.5 percent for individuals and 3.7 percent for companies, respectively.

"Most companies that have experience in hiring temporary employees were pretty satisfied with the results, as the contract form of employment fills their needs and saves in recruiting, training and other personnel costs," Monica Chiu (邱文仁), marketing director of the 104 Job Bank (104人力銀行), told a press conference yesterday.

Administration assistants, IT specialists production line workers are the positions most often available to temps, according to the survey.

In addition to employers, more people are willing to work on a temporary basis, from which they are able to learn from different jobs, or use their time flexibly, the survey said.

This form of employment is mostly welcomed among college students, through which they can find a path to a career after graduation, Chiu said.

The survey found that 88.6 percent of companies polled said they would offer permanent positions to temps if they perform well, which is another incentive for temporary employees to enter big corporations, Chiu said.

As many have concerns that temporary workers are paid lower and have poor benefits, Chiu said that, like general full-time jobs, temporary employees are entitled to health insurance, labor insurance and pension funds.

Before taking temporary positions, employees should confirm stipulations in the contracts to ensure their interests are protected, she suggested.

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