The challenges facing employment retention with reference to the Labour Brokering industry : a case study of a National Temporary Employment Service provider

Abstract

The labour broking industry has been the focus of much controversy since 2009 in South Africa. The constant pressure from trade unions to ban the industry with opposing views from business and temporary employment agencies on the significance of temporary employment has led to legislative changes in the Labour Relations Act (LRA) on temporary employment services (TES). These changes have thus created uncertainty in business, the TES industry and both the temporary and permanent TES workforce. The purpose of this study is to identify key factors and existing policies that influence employee retention and to further critically analyse the regulations on TES and its effect on employee retention within the labour broking industry. A four phase multiple methods research design with questionnaires, semi- structured interviews, focus groups and a Delphi analysis were used to examine the factors affecting employee retention from the employees and various stakeholders within the TES industry. The present and future impact of the regulations and TES demand was also explored. The findings showed that the regulations did reduce TES demand and work security. The negative reputation of Labour Brokers, union pressure and the nature of temporary contracts were contributing factors to employee retention challenges. This study indicates that the TES industry should repair the negative reputation and image in the minds of its stakeholders and the general public, makes strides towards more sustainable job security within the industry and create added value through training and development initiatives.