One of the best ways to predict the future? Look to the past for trends, patterns and insights.
It’s been four years since the end of the Great Recession. Since then, the temporary staffing industry has grown dramatically. That growth will likely be sustained, as Staffing Industry Analysts has predicted that the U.S. staffing industry will continue to grow at a rate of 6% in 2014.
Across industries, companies are employing more and more temporary and contract workers. Currently, temporary employment as a percent of total employment resides at 1.89% – near historic levels.
Undoubtedly, the temporary workforce is a permanent part of the workforce – throughout the U.S. and right here in Middle Tennessee. How can you use this reality to your company’s advantage in the year to come? Use this list of factors that are driving staffing growth for ideas:
Economic uncertainty is the one true constant. Given the unpredictability in our marketplace today – fueled by the implementation of the Affordable Care Act, the recent governmental shut-down, stock market fluctuations, etc., the staffing industry will likely continue to grow as companies bring on temporary workers and part-timers when workers are needed.
The way we work is changing. In many industries, companies are starting to outsource projects that are outside their core competency. In addition, many tasks are being rewritten as projects. This evolution is particularly notable in the IT, engineering, legal and financial fields. Skilled workers are recognizing these opportunities and are entering the world of contract labor – which, in turn, is causing statement-of-work (SOW) contracting to rapidly increase within many organizations. In many ways, contracting is the only way to attract needed, skilled labor, and it provides greater opportunities for cost containment.
Backlash against off-shore contingent solutions heightens. Many companies have grown dissatisfied with the communications gap that exists between themselves and offshore support workers. As a result, they are turning back to onshore contractors to staff-up during their busy seasons.
Demographic shifts are changing the face of work. An increasing number of workers will look to contract work, part-time work and other less-than-long-term employment arrangements. Here’s why:
- Younger workers are more mobile and receptive to contract staffing.
- People are staying in the workforce longer. The recent recession, coupled with the fact that people are simply living healthier longer, is causing people to look for ways to stay employed.
- Technology is providing the flexibility people need to use their skills in new ways. Combine this with the focus on statement-of-work contracting, and you have both the employment model as well as the needed workforce to propel growth in the temporary employment sector.
Are you ready to see how temporary staffing can benefit your company’s growth goals and objectives? Wood Personnel would like to offer you a free workforce consultation. Let’s get together to discuss your business goals and create the right staffing plan to help you achieve them.
Though we don’t actually have a crystal ball, this list of factors driving staffing growth may spur a few ideas for you:
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