Chile – staffing industry grew 10.5% in 2018

25, April

According to the new survey developed by the Chilean Association of Human Resources Firms (AGEST), the average net ...

According to the new survey developed by the Chilean Association of Human Resources Firms (AGEST), the average net wage in the outsourcing industry reached CLP 685.000 in 2018, while in the temporary staffing industry, the gross average wage was close to CLP 641.258.

“This survey shows the growth level and contribution of this type of human resources services. Outsourcing candidates and clients gain benefits from greater flexibility, proper wages, and formal employment. Furthermore, the country also benefits from this industry, as it helps to transform informal employment into formal jobs”, explains Juan Pablo Dañobeitía, president of AGEST.

2018 was a good year for the Chilean outsourcing and temporary staffing industry. AGEST members’ revenues grew 10.5% when compared to 2017, reaching USD 380 million. Such growth rate doubles the growth rate of the Chilean economy. In the outsourcing industry, the annual revenues growth reached +13.3%, while in the temporary staffing industry it was around + 6.1%.

The survey also shows that the sectors that used outsourcing services the most were Retail (24%), IT/Telcos (16%), non-financial services (12%), and Utilities services (9%). As regards Temporary Staffing, the main industries that demanded their services were Retail (19%), Finance (15%), Mining (13%) and Utilities Services (9%).

The number of workers hired via outsourcing were 59.375, and via temporary staffing 58.797.

Around 56% of temporary staffing workers are between 18 and 29 years old, and 33% are between 30 and 44 years old. When it comes to outsourcing, 42% of workers are between 30 and 44 years old and 37% between 18 and 29 years old. “It has been proven that Temporary Staffing and Outsourcing are very efficient ways in placing young people into formal working opportunities. As a matter of fact, 6 out of 10 temporary workers are younger than 30 years old”, said Dañobeitía.

As regards gender differences, male labour participation in the Temporary Staffing sector was 59% (versus 41% female), and 67% in outsourcing (33% female).

Finally, in 2018, 95% of temporary staffing workers and 94% of outsourcing workers were Chilean. Among foreign workers, Venezuelans represent the largest share (43.79% in temporary staffing and 32.91% in outsourcing services).

AGEST member firms involved in the survey include: HumanNet Consultores, Manpower Group, Adecco, Grupo Cosmos, Randstad, Incosec, Alternattiva, Teamwork, SSI, Grupo Expro, Grafton, Workmate, CDO, and Helpbank.