Casual Staff May Cost More

Casual staff may cost more: research

By Samantha Baden

May 16, 2006

BOSSES who hire casual workers to save money and gain flexibility could end up paying more in the long run because of the hidden health and safety costs of temporary staff, research shows.

A study by University of NSW (UNSW) PhD student Maria McNamara has found that casual workers are at a greater risk of being injured compared to permanent employees, creating significant costs for companies.

Lower motivation and productivity also impose a further hidden cost on employers of casual workers, the research says.

Casual workers are often considered a cheaper alternative to permanent staff because they are not entitled to either paid holiday leave or sick pay.

"(But) there is a growing body of international research linking casual employment with an increased risk of occupational injury and illness as well as other adverse outcomes," Ms McNamara says.

"These adverse outcomes include increased staff turnover, lower motivation and job satisfaction, lower productivity and higher costs to companies."

With 2.3 million casual workers in Australia, more than one in four Australian workers are casual workers, according to the Australian Bureau of Statistics.

While it is too early to tell what effect the federal government's Work Choices legislation will have on the prevalence of casual labour, Ms McNamara says it could encourage even more companies to employ casuals.

"In making it generally easier for employers to restructure work arrangements, Work Choices may encourage the use of more temporary workers," the report says.

"On the other hand, the reduced access to unfair dismissal protection may make some employers less reluctant to take on permanent workers."

Whatever the effect, Ms McNamara says companies need to focus on ensuring temporary workers are properly trained.

"Companies that want to lessen the risks associated with a temporary workforce should pay attention to ensuring that all casual employees get appropriate levels of induction training and on-the-job supervision," Ms McNamara says.

"There have been many recent court cases where inadequate supervision of casual workers has been cited as contributing to increased accidents and injuries."