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Germany – Temp-to-perm conversion rate improving

28 March 2012

Germany is one of the European countries where temporary work does not have the best of reputations – trade unions have in the past likened temporary staffing to slave labour and an opposition party has recently demanded the abolition of temporary staffing altogether.

But a new barometer by the association of temporary employment agencies, iGZ, aims to contradict this negative image and has found that the temp-to-perm conversion rate is increasing while more and more temporaries are also working on a full-time basis.   

The iGZ says that temporary employment agencies are “reliable employers who offer long-term employment with prospects.”

The barometer shows that 83.3% of temporary employees are working on indefinite employment contracts while almost 90% of them were working full-time hours. It also showed that more and more temporary workers are able to find permanent jobs as the temp-to-perm conversion rate is going up: in the second quarter of 2011 this figure was 32.6% but in the fourth quarter it increased to 36.0%. In response to these results the iGZ says that temporary work is becoming an important recruitment tool, providing “a springboard into permanent employment.” 

But despite these positive developments, only 11.5% of temporary employment agencies said that the image of temporary staffing in Germany was “positive” and 21.5% rated this as “neutral” – a staggering 58% said the image was clearly negative.

The survey also showed that the majority of temporary workforce is made up of men (77.8%) while almost 60% had recognised vocational qualifications. An age bias could be found as well: 33.1% of temporary workers were 21-30 years old, followed by those in the age range of 31-40 (27.8%).

To read the full study in German language, click here.

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