Staffing Growth Increases Industry Competition

Denise Martinez Market Trends, Staffing, Staffing

Staffing companies are performing remarkably well, just as they were at this time last year, according to Workforce. The temporary worker penetration rate has just hit another record high at 2.10 percent in September, and staffing agencies across the country are enjoying high levels of success, including publicly traded staffing companies. This continuing high growth trend puts the traditional wisdom that temporary workers are in greatest demand during a recession and less necessary thereafter in question. Instead, many believe contingent work is the future of employment.

"Following the recession, we've seen tremendous change in the industry, and the progression has accelerated in the last year," Jorge Perez, senior vice president of ManpowerGroup in North America, told Workforce. "Employers are more strategic with their workforce planning. Employers are finding the right mix of contingent and permanent and part-time and full-time employees to drive their businesses forward most efficiently while harnessing as much productivity as possible."

Many organizations are now looking for flexible workers as a constant part of their workforce planning rather than as a stopgap for an uncertain economy. This involves using temporary employees, contractors and freelancers for many tasks within a company, which can in turn reduce the burden on full-time staff and keep them happier.

Trends in Temporary Staffing
Temporary positions that lead to permanent employment are now trending, according to Workforce. A temp-to-hire position is considered a great opportunity for the worker, and staffing industry professionals should be sure they tell candidates as much. In addition, though, it's also good for the company in question, which has the opportunity to evaluate a candidate before committing to hire him or her.

Workforce also noted that baby boomers who want to come out of retirement to work often choose temporary work on a part-time basis.

"They're boomeranging back into the workforce after retirement," Paul McDonald, senior executive director for Robert Half International, told Workforce. "They've got a lot of brain power and energy, and they want to get involved in the workforce again."

As staffing firms compete for top talent and build relationships to that end, they may want to consider their mix of candidates. Are they making temp-to-hire opportunities clear? Are they making an effort to reach out to retirees with vital skills? Both of these avenues of recruitment can help staffing firms create and maintain a competitive edge in a thriving staffing market.

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