Service Providers in the Information Society – Temporary Contracts Becoming Ever More Popular

In recent years, service providers in the information society have implemented a number of different organisational measures in order to optimise the provision of their services. It is with this aim in mind, that they have particularly embraced temporary contracts.

Between 2002 and 2004 the proportion of all service providers in the information society, who concluded temporary contracts with their employees, rose constantly. Accordingly, in 2004, 85 per cent of service providers in the information society hold temporary contracts with workers. In 2002 this figure was around only 70 per cent. In the telecommunications industry, the personnel policies of nearly all companies make use of temporary contracts. In contrast, the frequency with which software and IT-service providers, as well as tax consultancies and accountants conclude temporary contracts is well below average. The percentage total, of nearly 80 per cent, does suggest that a majority of companies in these sectors do, however, implement this instrument as part of their personnel policy.

These findings are the result of a business survey carried out in September 2004 among service providers of the information society. The survey was conducted by the Centre for European Economic Research (ZEW), located in Mannheim, in cooperation with the credit reference agency Creditreform, located in Neuss. Approximately 1,100 companies took part in the survey. Service providers in the information society include those active in the field of Information and Communication Technology (ICT), (companies providing software and IT-services,specialisedICT trade and telecommunication services) as well as knowledge-intensive services(companies active in the fields of tax consultancy and accounting, management consultancy, architecture, technical consultancy and planning, research and development as well as marketing).

Alongside temporary contracts, part-time contracts also play an important role in this economic sector. In 2004, more than 80 per cent of companies conclude part-time contracts with their employees. This figure has, however, fallen slightly; in 2003 the proportion totaled nearly 90 per cent. It is management consultancy firms and telecommunication providers who most frequently offer their employees the possibility of working part-time. In comparison, software and IT-service providers, as well as tax advisors and accountancy firms, rarely make use of this personnel policy instrument. 

Furthermore, service providers in the information society seem convinced of the potential of incentive payments. In 2004, almost 80 per cent of companies included a performance-related component in the remuneration of their employees. In 2003, this proportion was 90 per cent. Incentive payment policies have already been particularly embraced by service providers in the telecommunications sector (almost 100 per cent) and management consultancies (almost 95 per cent). In comparison, architecture firms (around 65 per cent), as well as tax consultancies and accountancy firms (around 70 per cent), rarely make use of this instrument.

Contact

Prof. Dr. Alexandra Spitz-Oener, Telephone: 0621/1235-293, E-mail: spitz@zew.de