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A +25% increase in temporary positions is being partly attributed to the introduction of maternity leave in Chile, according to Randstad. The introduction of the new legislation in October 2011, enabled new mothers to take six months maternity leave. While not the sole contributing factor, the new legislation has made the necessary use of temporary workers more widespread.
Giovanna Cordova, of Randstad, commented: “At the country level, [increased temporary recruitment] is mainly the development of a stable economy, a rise in productivity levels and consequently an increase in GDP.”
Mariano Valacco, of Global Partner Jobs, concurred in an article by Economia y Negocios: “SMEs often do not have the ability to recruit permanent staff. Factors such as [the] seasonality of some economic activity, against a backdrop of more demanding labour legislation encourages the use of temporary workers.”
Karina Perez, of Robert Half International, also commented to Economia, predicted that temporary recruitment will increase further, as hiring temporary employees lowers companies’ fixed costs. “If you take into account that in the markets like the US and Europe it is common for people to specialise in a field and then look for jobs in this field in different companies. Chilean professionals are more conservative, and therefore prefer the stability offered by a permanent contract.”
Marata Macarena, of Page Interim, explained to Economia that while employees value job security, companies are increasingly valuing employees that have worked steadily in various companies, able to demonstrate the ability to adapt and learn.
A study by Randstad showed that in 2012, 85% of respondents hired permanent staff and 38% used temporary staff. Experts believe that the increase in temporary recruitment will continue to grow as Chile develops its economy.