The rise of contract staffing as a staffing model

The improvement in the prospects of the U.S. economy is resulting in an underlying shift in the complexion of work force that reveals about a large number of people do accepting temporary jobs by taking short term contracts. People as such are relying less on traditional full time jobs amidst a globally competitive economy. In addition, the implementation of the Affordable Health Care Act is hastening this trend making it easier for people or workers to purchase health care insurance on their own and thereby alluring the companies to use contract staffing agencies to fill positions so that they can avoid insurance mandates.

In addition, companies are still hesitant to hire on permanent basis as they want to dip their toes in as they try to expand and would like to try before use through contract staffing model. The staffing agencies are also getting candidates who have been working on contract for years and are creating attractive resumes with their overall job experiences. These people or contract workers are able to use and develop their skills in different industries in addition to having a liking for these varieties of work though contract to hire/temporary staffing jobs. Previously, these workers or candidates used to spend too much money on the health insurance plans but now they are able to work on contract and get great health insurance benefits at group rates.

As the legal employees of the contract staffing firms, the contractors are now offered rich benefits of packages that include health care insurance that meets the Affordable Care Act standards including dental, vision and life insurance in addition to 401(k). These contractors are also covered under the concerned staffing firm’s Unemployment Insurance and Workers’ Compensation Policy. Workers or employees are not averse to temporary jobs or contract positions as they prefer the flexibility or less restrictive work environment.

In 2011, high skilled professional positions such as engineering, scientific research, accounting and software development represented about 15.2% of temporary staffing positions that is up from 12.7% in 2007. It is also estimated that only about 6.8% of temporary or contract staffing positions in the United States lead directly to permanent jobs with the employer as per a study carried out in 2012.