When Luc Bachelerie, the regional head of the large global staffing agency Adecco, arrived in Dubai last summer, he found a booming employment market hungry for his large database of potential staff. Nine months later, with more companies firing than hiring, Adecco has had to find new revenue sources. Seconding, or renting out employees to companies for limited times, has provided a profitable stream.
"The market just flipped," Mr Bachelerie says. "It switched from a scarce sourcing market to a very depressed market where we have to find solutions for our customers. Now we get visas for people, put them on our payroll and second, or outsource, them." The secondment market is thriving as many companies need to hire staff to work on urgent and temporary projects, but hiring freezes imposed by managers leave them unable to add staff, permanent or temporary.
"Is this a time to recruit? No," Mr Bachelerie says. "Instead, we provide our customers with staffing. Secondment has become our key added value." Hiring temporary workers enables firms to add staff quickly, without having to go through administrative procedures such as chasing visas. Once Mr Bachelerie receives the go-ahead from a client, he looks for the required staff either in the firm's local or international network.
"Usually we already have them on our payroll," he says. "Our strategy is to have indefinite contracts with trained professionals, not to hire and fire them. The ones in our permanent books are always in demand." Adecco's greatest demand is for IT and telecommunications experts, and engineers in the oil and gas and construction sectors. "The other day we needed seven mining experts for a mining-related company, so we looked for experts in Brazil, China, South Africa, Europe," Mr Bachelerie says.
While the economic downturn has sparked a wave of new secondment business in the UAE, companies are sometimes replacing temporary workers they previously let go. "When the crisis hits regulated markets they tend to first let go of the temps, because temping is mainly used for the purpose of flexibility," Mr Bachelerie says. The mix between its classic placement business and secondment helps to insulate Adecco from economic volatility. Companies pay Adecco a monthly salary markup for every worker who is seconded, and a lump sum when Adecco finds staff for them.
Some companies may turn to firms such as Adecco to rent staff even when times are good. "Some companies may only have visa rights for 10 people, or have permission to employ, for example, 40 workers in 1,000 square metres," Mr Bachelerie says. The absence of a clear legal framework can also make it difficult for companies to get work visas for additional employees, which makes staffing agencies attractive.
Mr Bachelerie hired employees from diverse cultural backgrounds for the running of his own company to allow him to aim for a wide array of candidates and cater for more companies looking to hire. Most of his 15 staff come from Europe, including Russia, apart from three Indian and two Arabic employees. The UAE has few regulations for temporary employees, which has advantages and disadvantages. Unlike Europe, where companies can hire temporary employees for up to only three months, there are no time limits in this country. But a lack of clear rules has also led to many unlicensed newcomers setting up shop here.
The Government recently began cracking down on unlicensed staffing agencies, Mr Bachelerie says.
"We have two licences; one for recruitment and one for secondment," he says. "The outsourcing licence is our key value-added because it is difficult to obtain."
uharnischfeger@thenational.ae
