The Staffing Industry Has Yet to Reach Its Full Potential
Depending on who you talk to, some organizations see temporary staffing as a moral hazard that undermines the well-being of our economy. They say that temporary workers hired through a staffing agency have lower levels of job security and receive fewer benefits than direct hire workers. They go on to say that training, protection, and experience (or lack thereof) are also factors that add to the complexities of the temporary employment arrangement.
I say the market has changed.
Those statements above may have had some truth to them 10 to 20 years ago. However, the economy chose to staff employees on a temporary basis. Today, the rise of the contingent worker and the need for an elastic workforce are changing the landscape of business forever.
Here’s an excerpt from an article released by Staffing Industry Analysts back in 2011:
Today, roughly 10% of the workforce is contingent, according to Staffing Industry Analysts. Staffing Industry Analysts' own long-term projections for 2020 puts the U.S. Staffing industry at 3.4 million employees, $185 billion in U.S. Temp revenue, and 2.2% temp help penetration.
The expectation is by 2020, between 15 & 25% of the workforce will be contingent, as more and more companies recognize the benefits.
The way the things are changing, these numbers don’t seem too unrealistic.
To add to that point, the work place is forever changing. Applicants and employees want more control over their duties, schedules and lives. Due to this, staffing firms have a dynamic role to play by being a true partner with their clients to help them find creative, on demand solutions to talent acquisition.
When is the last time we have ever seen 5 generations working together all at one time? Of course, the baby boomers are on their way out. So, the big question is, have they done a good job in transferring their knowledge? Do we have enough younger people to fill the gaps? These are all legitimate questions that need to be answered now.
With unanswered questions, lies opportunity! That being said, who is going to step up?
You see the culture, behavior and systems of the old staffing company methodology had to change with the passage of time. Sometimes, it’s such a slight change that the lines become blurred at times between old and new.
The new staffing company will create flexibility and mobility, and embrace the new technology, such as social media, as the future of the industry. New staffing companies have to educate and train better than they did before.
Though, what will ultimately make or break the future staffing company is their ability to embrace government compliance and financial responsibility; for it is not leaving anytime soon. In fact, it is destined to grow at the same pace as, if not quicker than, the Staffing industry itself.
Like it or not, the Staffing Industry is poised for continued growth.
Besides, at the end of the day, when you walk into a business, can you really tell the difference between a contingent worker and permanent worker?