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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Contract staffing back with a bang to pre-recession levels

The staffing industry has seen huge changes during the last decade that are on par with economic upheavals and technological advances. This has resulted in companies changing their hiring strategy that consisted of relying more on contract staffing agencies for their hiring needs. Contract staffing has emerged as a big business and has seen an incredible growth in 2014 with expectations of further growth in the coming years. According to the data released by the American Staffing Association or ASA, the U.S. staffing companies employed on an average of 3.26 temporary and contract workers per week during the third quarter of 2014 that is about 6.1% increase for the same period of 2013.

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Reasons for Hiring Temporary Employees

Business organizations of this decade are facing tough competition not only from their local competitors but also global ones. With the online technologies growing rapidly, the whole world has become a global village with a huge number of entrepreneurs competing for a market pie to move their businesses forward. In the dog eats dog business world, enterprises are working hard to attract new business, reduce costs and become a market leader. The small and medium sized business enterprises are feeling the heat of competition and to beat the heat they require talented employees or workers who can help them in carrying out their day to day business activities.

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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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Survival tips for staffing firms in the new job market

With the job market going gung-ho with the emerging job seekers the time has come for majority of staffing firms or agencies to be bullish in the market.  The hiring levels are up with services such as finance, legal, oil and gas, education and IT and there exists the growing gap between the demand and supply. When it comes to employment these gaps should be filled up or addressed to by the staffing firms. With the U.S. economy recouping from recession and related job cuts, still there are after effects that has caused many people to disengage from the workforce after months or years of unemployment.

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