Temporary Workers Are Making a Comeback

During the week of Nov. 26–Dec. 2, 2012 temporary and contract employment increased by 3.67%, and staffing employment in November is up 4.2% from the same month last year, according to the ASA Staffing Index.

The temporary staffing industry has always been a strong economic indicator of recession recovery. It can be said that when the economy is bad, temporary workers are the first to be let go. When the economy improves, temporary jobs account for much of the growth.

A recent U.S. News & World Report article indicated that after hitting a peak of nearly 2.7 million workers in 2006, the temporary help industry lost more than one-third of its members during the downturn. Since then, it has regained a vast majority of the workers it lost - 87 percent - and continues to add them steadily. Compare that to all private employers, which have only brought back just over half of their jobs.

Although it is positive that the economy is showing signs of recovery, this trend can potentially lead to a rapid escalation of labor cost - especially towards the end of projects.

How can you minimize the impact of rising labor costs and a higher demand for skilled workers? Here are 3 ways you can gain a strategic advantage using temporary staffing:

1. Identify High Turnover Positions - Positions with turnover rates of fourteen months or less can cost you money in the long run. Many employers have added to their bottom line by outsourcing jobs that have high-turnover rates instead of using valuable resources to recruit and retain for these positions.
2. Take on New Business - Don’t turn away new business because of labor constraints. Instead, consider hiring specialized temporary workers for unexpected special projects. This can give you the flexibility to expand your business model with minimal risk.
3. Use Temps for Short-Term Projects - Instead of hiring a new permanent employees and then trying to find new work for them when the project is complete, consider using temporary workers. These individuals can work on the project at hand and then move on at completion 

In a struggling economy, recruiting qualified construction workers is much easier than in a more stable economy when businesses are thriving and qualified workers are scarce. Using temporary workers can be a great strategy to minimize costs and help your business in the coming year.  Please contact us or call 1.866.532.6777 if we can be of further assistance.