Written by Howard Gospel, Emeritus Professor of Management at King’s College London, the report, Direct Employment – A study of Economic, Business and Social Outcomes urges contractors and clients to enforce direct employment into their workforce to improve productivity.

Acknowledging that non-direct working offers firms some short-term conveniences, the report reiterates that these are outweighed by potentially negative consequences affecting areas such as apprentice training, take up of new technologies, health, safety and wellbeing.

In addition, the Construction Leadership Council (CLC) notes that: “Direct employment delivers a highly-engaged, competent workforce, increased productivity and higher value. It is reported to overcome skills shortages, spiralling labour costs, poor productivity and quality, avoiding low uptake of new work processes and technology…reducing risks around delivery certainty, reputation and quality.”

The CLC is developing recommendations for procurement reforms mandating direct employment. Their goal is that by the end of 2024, direct employment will be required throughout supply chains for pre-qualification questionnaires and tender criteria for public sector contracts.

As an electrical contractor which has always prioritised direct employment, we at West & West wholeheartedly support these calls for action and the need to use the right employment model to help support quality, innovation, safety. And we believe that all building firms – large and small – should set an example.

Enhancing skills

We have learnt first-hand that employing people directly as opposed to relying on subcontracted or agency staff, makes a fundamental contribution to the individual’s skill levels and abilities.

At West & West, all our direct employees are given the opportunity to undertake additional training and professional development in areas that interest them, ranging from electrical design through to security systems and fire safety. We also offer courses in management training to equip employees with the attributes and mindset needed for career development – whether this is with us or elsewhere.

As well as helping them to upskill, this investment in training ensures our people feel valued, encouraging motivation and loyalty.

A cultural fit

Another key benefit of directly employing staff is the opportunity to select individuals with the right attitude for the business and its culture. Finding an individual who is proactive, motivated and capable of working collaboratively is initially more important than them having all the required technical skills as these gaps can be filled later.

Whether someone joins West & West as an apprentice or later on in their career, as direct employees they learn our approach to the trade and our expectations in terms of quality of work and attitude, which is to go above and beyond client requirements.

Relying on subcontracted and agency staff risks a low commitment to the job and them leaving part way through. Our experience has also shown that temporary staff, who are unconnected to the company long term, are not versed in the standards and work ethic necessary for each project’s success. They are more likely to turn up and do a day’s work with minimum effort.

Investing in the workforce

When there is a recession or dip in economic circumstances, people will often follow the work and be more likely to take on agency or subcontracted jobs. That means it is up to employers to offer attractive enough roles with additional benefits in terms of induction, training, development to encourage individuals to stay and prosper with the business.

We have found that this investment has proved crucial during the pandemic, enabling us to recruit more people. While other companies have laid off staff, we have increased our recruitment activity, enabling us to bring on the best in the industry and offer individuals job security in tumultuous times, as well as continued professional development opportunities.

Seizing the opportunity

The authors of the foreword in the JIB report state they want it to become ‘a catalyst to action in the work we are all embarked upon to create a more innovative, productive, sustainable, and attractive industry.’ The recommendations present an opportunity for electrical contractors to eliminate the risks associated with non-direct employment and build highly-skilled workforces with the right attitudes and mindsets to raise standards across the whole construction sector.

Daniel West is Managing Director at West & West.