The emergence of temporary employee as a staffing model

The recessionary periods of the mid 2000’s and the recovery later one has resulted in the businesses and companies adopting temporary staffing as the best staffing model. In the United States, staffing firms employ about three million people every week and about eleven million temporary and contract employees are being hired by these staffing agencies as per the data provided by the American Staffing Association (ASA). It is estimated that temporary workers or employees make up roughly about 2% of the U.S. labor force. After the end of the recession, the staffing agencies have helped in creating more jobs than any other sector.

From June 2009 to July 2012, the American staffing companies have added more than 786,000 jobs to their payrolls. According to the U.S. Bureau of Labor Statistics data cited by the ASA, temporary staffing jobs accounted for 91% of total nonfarm growth from June 2009 to June 2011. This shift to temporary staffing represents the highest ever shift of the work force towards temporary workforce model. Still, there is much room to be filled up in this arena with the staffing industry expected to grow by 6% in 2014 and by another 7% in 2015 for the whole nation.

The need for temporary workers especially in health care and online retail sectors is in rise. The other sectors that are in need of temporary workers include business sectors such as in engineering, Information Technology, accounting and finance as well as in light industrial sectors that include manufacturing and logistics. The global competition across sectors is forcing U.S. companies to remain vigilant to face competition with industries located in developing as well as developed economies of Japan, China and India. The outsourcing of IT and accounting jobs has resulted in depending more on temporary work force than hiring a permanent staff.

For employers, the benefits of hiring the services of staffing agencies for their workforce requirement are multifaceted. For instance, organizations can use the services of temporary workers or employees seasonally or on a project basis. The advantage for temporary workers is that it allows them to gain expertise in different skill sets that helps them to work on new projects as and when there arises new job positions. Now the time is ripe to reap the benefits of temporary staffing model for both the employers as well as the workers/employees.