In an ever-evolving global job market, private employment agencies have become vital players, offering flexible and formal solutions that benefit both employees and employers. During her recent presentation at the HR Insights Forum: Driving Success Through People, Viktorija Proskurovska, Labour Market Intelligence Manager at the World Employment Confederation, delivered a compelling speech on why these agencies are crucial to the global workforce. Here, we explore the key themes and insights from her presentation, reflecting on how private employment agencies are driving change and fostering a more inclusive and adaptable labor market.
1. Bridging the Gap Between Informal and Formal Work
One of the central messages in Viktorija’s speech was the need for a more formalized approach to employment worldwide. According to the International Labour Organization, 60% of global employment is informal, leaving many workers without basic social security and stability. Private employment agencies are stepping in to address this gap by offering flexible, yet formal, employment contracts.
„Private employment agencies are indispensable for the labour market ecosystem. We offer flexible and formal contracts, and that is very important because, according to the International Labour Organization statistics, 60% of all employment in the world is informal,” said Viktorija. „We offer this opportunity to work formally, to get social security benefits, to help people breathe easier and be more confident by themselves.”
These agencies provide millions of people worldwide with the opportunity to access the benefits of formal employment, including health insurance, retirement contributions, and other essential social security measures. By doing so, they play a significant role in improving the quality of life for workers who would otherwise be left vulnerable.
2. Flexibility: Meeting the Needs of a Diverse Workforce
Viktorija emphasized that one of the main strengths of private employment agencies is their ability to cater to a diverse range of employment needs. Whether it’s young professionals looking to gain experience or older workers seeking part-time opportunities, private agencies provide the flexibility that allows people to work on their own terms.
„There will be people who can work and who want to work full-time, open-ended contracts, and there will be people who cannot for whatever reasons, for whatever limitations or preferences they have in their life,” she explained. „And there, I think, agency work steps in as an excellent bridge, a stepping stone for these people to get into the labour market.”
This flexibility has become increasingly important, especially as the modern workforce continues to evolve. Workers now seek jobs that allow them to balance their professional and personal lives, and private employment agencies are uniquely positioned to offer these flexible solutions.
3. Enhancing Labor Market Efficiency
A major theme of Viktorija’s speech was the role of private agencies in enhancing labor market efficiency. By connecting surplus talent with demand, these agencies ensure that businesses can operate smoothly, even in times of economic fluctuation.
„We make labour markets more efficient because we use the places where labour market is in excess and we move them to the places where labour is more scarce,” Viktorija noted. „We help client companies with HR management, as I mentioned before, and we make labour markets therefore more efficient.”
This matching process is beneficial not only for companies that need to fill short-term or seasonal positions but also for workers who may be seeking temporary employment opportunities to gain experience or supplement their income.
4. Adapting to the Future of Work
The modern labor market is marked by rapid changes, influenced by technological advancements, economic shifts, and global events like the COVID-19 pandemic. Viktorija highlighted that private employment agencies are well-equipped to help businesses and workers navigate these changes.
„The majority of senior executives say that the idea of one person following one career path is gone for good,” she said. „92% say that they will need a more flexible workforce in the next two years.”
These statistics point to a growing trend: the traditional concept of a linear career is becoming obsolete. In response, private agencies are offering training and reskilling programs to help workers adapt to new industries and technologies, ensuring that they remain relevant and competitive in a fast-paced market.
5. The Need for a Modern Regulatory Framework
One of the challenges that Viktorija addressed was the need for a modern regulatory framework that reflects the current realities of the job market. Many existing labor laws are outdated and do not account for the flexible, dynamic nature of today’s workforce.
„We need a legal framework that corresponds to today’s labour market which evolves and is changing over time,” she said. „If the legislative framework is made for last century, but this century things have moved on so fast for so many different reasons, there will always be tensions and misalignments.”
Viktorija called for continued collaboration between private agencies, companies, and policymakers to develop regulations that support growth, flexibility, and inclusivity. This approach would help to create a more resilient and robust job market that benefits everyone involved.
6. Promoting Continuous Dialogue and Collaboration
As she concluded her speech, Viktorija emphasized the importance of ongoing dialogue among all stakeholders in the labor market. She encouraged private agencies, companies, and policymakers to work together in building a cohesive strategy for the future.
„Our purpose is not to publish the report and then forget about it; we would like to continue the dialogue with all parties involved and hear your views so that we can come up with a good strategy for the future,” she stated.
By fostering collaboration, private employment agencies can remain adaptable and responsive to new trends, ensuring that they continue to provide valuable services that meet the needs of the modern workforce.
Conclusion: Private Employment Agencies as Key Players in the Future of Work
Viktorija Proskurovska’s presentation at the HR Insights Forum underscored the indispensable role of private employment agencies in today’s job market. From offering flexible employment solutions to advocating for a modern regulatory framework, these agencies are at the forefront of creating a more inclusive and adaptable workforce.
„Agency work is not here to completely revamp the labour market. The purpose is not to have a 50% penetration rate. This will never happen, or maybe not in the next 10-20 years,” Viktorija said. „The point is that there will be people who can work and who want to work full-time, open-ended, and there will be people who cannot… And there, I think, agency work steps in as an excellent bridge.”
As the world of work continues to change, the ability of private employment agencies to respond to these shifts will be critical in ensuring that everyone has the opportunity to succeed. By fostering collaboration and dialogue, we can build a labor market that is dynamic, resilient, and prepared for the challenges and opportunities of the future.
Key Takeaways:
- Formal Employment: Private agencies offer a pathway to formal work, essential in a world where 60% of jobs are informal.
- Flexibility and Inclusivity: Agencies provide adaptable solutions that cater to the diverse needs of the modern workforce.
- Efficiency: By matching talent with demand, private agencies help improve labor market dynamics.
- Adapting to Change: The need for reskilling and flexibility will define the future of work, and private agencies are ready to meet this challenge.
- Modern Regulations: Collaboration between agencies, businesses, and policymakers is essential for developing a supportive regulatory framework.
- Ongoing Dialogue: Continuous engagement is key to shaping a resilient, inclusive, and efficient job market.
As we move forward, let’s embrace the flexibility, adaptability, and inclusivity that private employment agencies bring to the global workforce.
