The need of hiring the services of staffing agencies

The recruitment industry that includes the staffing is quite larger than it seems. Staffing companies and recruitment agencies are offering a wide range of employment related services. Staffing companies in the United States are hiring more than 11 million temporary and contract employees during a course of a year and these temporary employees work in virtually all occupations in across all sectors. According to the American Staffing Association, percentage of temporary workers or employees during the year – 2013, consisted of 37% in industrial positions, 28% in office/administrative positions, 13% in professional/managerial positions, 13% in technical (including information technology, scientific positions), and 9% in health care position.

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Rising employment trends to benefit staffing agencies

Staffing agencies or staffing firms as an industry is quite larger and according to the American Staffing Association or ASA, there are more than 17,000 staffing and recruiting companies in the United States that are operating with more than 35,000 branch offices. These staffing firms or companies range from smaller pop up shops with one office to multinational organizations having offices and branches employing thousands of employees. Their growth is also helping the job seekers as well as companies as they are directly or indirectly providing jobs to the former and prospective employees to the latter.

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Staffing services climbing the economic ladder

The American economy is continuing to expand for more than five years in a row since the end of Great Recession. However, in this entire five year period the expansion is at sub-par levels. The U.S. economy took about five years to recover the jobs that were lost during the 18 months of Great Recession. Even though, the job losses have been regained but with the population explosion there are now new workers who are competing for the newly created jobs. The unemployment rate that has come on par with normal levels has also resulted in the decline of labor force participation to the lowest levels in decades.

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The positive emerging picture of staffing trends

The staffing companies or firms as of now are on the high growth trajectory as they were during 2013. The staffing firms are enjoying the higher demand for temporary labor and there is a demand for record number of temporary jobs that is expected to continue for the next successive years and beyond. The actual high growth trends in staffing industry started back in 2000’s with companies after getting weary of fighting Great Recession were searching ways for balancing increasing product demand with uncertainty about the workforce or prospective employees. Even though, recession is quite over, but the demand for temporary labor still exists.

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Reasons for quitting the job by temporary workers

The temporary jobs have been on a substantial growth plane with temporary help services growing continues to materially outpacing the overall employment growth. The U.S. staffing companies or firms accounted for 2.6% of non-farm payrolls or about 2.86 million workers during the month of May-2014. Amidst this growth rate in temporary jobs, a hidden problem faces the organization when hiring the services of temporary workers or employees and this relates to the workers quitting the jobs after they start on their assignments. The employer or organization therefore, should re-look into the reasons as to why the temporary workers are forced to quit the job and rectify them to finish off their projects.

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Employee happiness matters more for staffing firms

Staffing industry as a whole is a competitive one and is worth over 121 billion-dollar industry.  In this type of atmosphere, there is every possibility that these firms getting into a problem or going bust if they did not maintain an ethical culture in the workplace. Staffing agencies can reap the rewards of more motivated and productive employees resulting in getting greater financial success. For staffing agencies or firms, they should look up to their employees first to keep their clients happy. According to a recent survey carried on by Career Bliss, the most content U.S. workers or employees have credited their overall job satisfaction to employee incentives, benefits, career advancement and work-life balance provided by their respective staffing agencies or firms.

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The emergence of online staffing segment

The online staffing can be defined as an online platform that helps specific hires and specific workers to enter into a contract and transact work arrangements. The online staffing involves staffing firms providing staffing services to their client in hourly or project based tasks or roles by using very fast and highly automated online platform. The recent survey of the contingent work force buyers has found a sudden increase in plans to use online staffing. It is assumed that at least ten percent of the contingent work force buyers are expected to go for online staffing over the coming years.

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Overall review of the growth among staffing firms

Ever since the slowdown of recession in the United States, the fastest growing industry segments having been come to the fore is the Professional & Business Services Segments that include staffing firms of all specializations. In April-2014, unemployment rate dropped from 6.7% to 6.3% with the number of unemployed persons decreasing by 733,000. According to the BLS employment data, nonfarm payroll employment rose by 288,000 in April. In the IT temporary staffing, the median year over year revenue growth was 9% in April down from 11% in March as per the Pulse Survey results that are based on a monthly survey of U.S. staffing firms. The month of May’s survey included the data submitted by 114 staffing companies.

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Managing temporary employees/workers through motivation

Organizations to run effectively and efficiently need employees or staff for carrying out their businesses in a smooth manner. Organizations need not show any discrepancy when hiring employees as temporary employees or full time/permanent employees. The employees as a human capital requires huge investment on part of organizations and therefore employing temporary staff are ideal for short term based projects as temporary workers or employees comes at lower cost due to absence of providing them permanent benefits and compensation. Organizations can just hire the temporary workers through staffing agencies immediately at the heck of a call.

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Emerging trends of temporary staffing during 2013-14

Temporary staffing agencies are playing an important role in providing temporary workers/employees for companies who experience seasonal work demands and unexpected workloads. By hiring the services of temporary staffing agencies companies are getting benefits such as cutting down on the need to pay overtime to permanent employees along with indirect costs such as recruiting costs to be incurred for placing advertisements, cost of conducting interviews, skill assessment tests and opportunity cost of sorting through numerous resumes and applications. Companies are also able to save costs on the training of new employees as temporary staffing agencies provides ready made flexible work force.

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