Benefits of hiring IT staffing versus direct hire staffing

Staffing industry as such has emerged as the most complex market when dealing with the IT clients. The importance of quality and services is on decline with price or cost factors gaining prominence. The staffing agencies or firms are in the race of picking up more businesses that is resulting in fewer services to the clients. However, the growth in the information technology sector is good for staffing industry as a whole. There are challenges in the field of IT related positions being faced by IT staffing agencies as tech related positions were cited as difficult to fill by direct hire staffing firms.

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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 role of contingent work force in staffing

The staffing industry is positive about the contingent work with reports showing that the number of temporary workers in the workforce having increased by 29% during 2009 to 2012 and this is a rapidly growing work force. With the contingent work force segment continuing to grow, organizations are in a frenzy trying to keep up with the management and alignment of these workers alongside their current full time or permanent work force. The role of contingent work force has become important with the changing economy and recovery from Global Recession.

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An overview of temporary staffing industry

Staffing Industry Analysts have just released the latest forecast report for the U.S. staffing industry that projected that the year – 2015 would be another solid year for the IT temporary staffing market with an expected 7% revenue growth that result in a market size of $27.8 billion (which is 24% of the overall temporary staffing market). However, the analysts do predict that in 2015 the temporary IT staffing market will remain below its peak of 2000 when adjusted for inflation. 

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The role of staffing agencies on small business enterprises

Staffing agencies are now an important part of recruitment process not only for large-scale business enterprises or for Multinational Corporations but are also playing an important role in the providing qualified and qualitative personnel to small and medium sized business enterprises. Staffing agencies are helping and assisting small businesses in hiring the right talent and are acting as an extension of their existing human resources department. Now small businesses are outsourcing their hiring practices to staffing agencies thereby boosting their productivity and goodwill within their respective business sectors. By hiring the services of staffing agencies, small businesses are able to keep constant tabs on their staffing needs and the critical positions that need to be filled up.

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Challenges faced by employment agencies in United States

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.

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