Effects of contract staffing on organizations

The exponential growth of communication and the possibilities to connect with people across the globe completely changed the core feature of the global business environment.  It is a growth opportunity for various industries, economical conditions of various countries are now directly depending upon the capacity of its communicative strength with the rest of the world.  However, undoubtedly it remains as a core factor for the development of various new types of industries across many countries.  This opened up a channel for corporate and business world to venture into new industries which were not known to exist earlier.  Naturally the demand for the new work force having a different skill set were in great demand.  HRD of every new industry finds it very difficult to meet the demand.

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Benefits in hiring Contract Staffing Agency or a Staffing Firm

Resource management always remains one of the core concerns for any business organization. Successful resource management goes a long way in a business to grow exponentially and to firmly establish its foothold in the market. Getting service from a contract staffing agency can solve many complex issues concerning staffing and precious time for an organization. To keep a business on the perfect track, it is necessary to hire suitable and efficient staff, who can be proactive and goal oriented. Such employees act as supporting pillars for any organization. Even though this is very vital, many organizations wish to outsource this responsibility to a skilled and experienced consultancy firm which provide expert staffing services. Over the years, corporates , after a thorough cost-benefit analysis, are gravitating towards using the services of a contract staffing agency.

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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.

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The booming of contract staffing in United States

Staffing firms have emerged as the largest employment providers in the United States with vast resources at their disposal in the form of temporary, contract and permanent staffing options or types. Staffing firms are also a rich source of providing contract to hire staffing services, as there is more demand for such type of staffing in recent years. The history of contract staffing dates back to the late 1940s when there was a demand for seasonal workers in the form of secretaries and typists but with the passing decades, the parameters of hiring contract hire staffing has vastly changed.

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Understanding the distinction between types of staffing

Staffing as such has emerged as one of the most important placement or employment providers in the United States with the total number of employees in the U.S. employed through staffing firms reaching nearly to three million weekly. The year over year temporary staffing growth remains high at 8.61% and the job growth in temporary services is usually considered as a growth of the current state of employment. The Employment Trends Index or ETI witnessed an upward trend in July that now stands at 120.31, which is up from previous years 119.92 in June.

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The increased role of staffing services in United States

Staffing service firms or agencies are playing a pivotal role in  getting people to be engaged in jobs irrespective of the type of employment options such as temporary, permanent, contract to hire etc. Statistics do reveal that in the United States alone there are about 2.9 million workers working in the month of September-2014. However, it is not just about the industry engagement of temporary workers that has provided them with employment but also many of the staffing service firms or agencies have created jobs and placed millions of people in them.

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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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Recruiting and retaining competitive work force

Organizations as of now, amidst the global competition are looking to increase their market share and to improve their market competitiveness through expanding their portfolios. Business enterprises are facing challenges of launching new products and services every other day and therefore one can see a direct impact on demand for talent across a number of key disciplines. Especially for small and medium sized businesses recruiting and retaining top employees is a major cause of concern for these organizations. According to the Arthur J. Gallagher & Company Survey, the second largest challenge that employer participants reported was attracting and retaining a competitive workforce.

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