Employment agencies are providing recruiting, staffing and human resource functions to employers and candidates for decades. However, in recent times new recruiting trends are emerging due to advancement in the Information Technology and their related fields. The emergence of social media is also changing the landscape for hiring manager and the Human Resource (HR) departments of the organizations the world over. The traditional employment agencies have been effected by the financial crisis of late 2000’s that is considered by majority of economists to be the worst ever since the Great Depression of the 1930’s.
There emerged significant work changes and as per the estimates of the United States Department of Labor, the recruiting industry will increase by more than 50% by 2014. There has been an increase in the skilled professionals searching job listings by using job search engines and recruitment websites and other top job sites to find a new career opportunity and to post their resumes. Even though, this trend has changed the dynamics of the recruiting industry, the traditional brick and mortar employment agencies are still a major resource for companies that need to locate for top talent in their specific fields or discipline within their business sectors.
Candidates or professionals who consider new career opportunities by reviewing employment opportunities in newspapers, job boards and reading about job vacancies and job openings on a company website career pages still prefer job offers from staffing/employment agencies, headhunters, recruiters and recruitment firms. Even employers who use online hiring websites for recruiting candidates, to fulfill their staffing needs and to hire right candidates prefer to hire the services of employment agencies that specialize in specific industries and disciplines.
It is estimated that employment agencies within the staffing industry in the United States has employed on a daily average of about 2.6 million temporary and contract staff during 2010. A growing number of employment agencies use employee benefits to recruit workers and these benefits include paid vacation, holidays, bonuses, health care insurance, in-house job training, stock purchase options/discounts etc. Majority of employment agencies benefited from the increase in the internet activities and many of them considered the use of computer database and online services to track potential employees and job openings that are low-cost alternatives compared to traditional job search methods. The U.S. staffing industry revenue is expected to reach as high as $ 134.4 billion in 2013 and this revenue is expected to beat the industry’s previous high of $132.3 billion as it was in 2007.