Why Use A Staffing Service?

Businesses that obtain temporary and contract employees through staffing firms cite three main reasons, according to an American Staffing Association poll:

  • To fill in for absent employees or to fill a vacancy temporarily
  • To provide extra support during busy times or seasons
  • To staff special short-term projects

Staffing industry growth continued in 2005 and 2006 and is expected to continue strong in 2007 and well beyond.  Current economic conditions bode well for another year of double-digit growth for the staffing industry.  Besides the structural shift toward flexibility, three factors stand out:

  • With the improved economy, inflation is increasing, prompting the Federal Reserve to raise interest rates. Historically, rising interest rates are associated with staffing industry growth.
  • The unemployment rate is at a low level and the labor market is tightening. It is becoming increasingly difficult for employers to recruit workers, especially skilled workers.
  • Three-quarters of employees are looking for new jobs, according to a survey conducted by the Society for Human Resource Managers and Career-Journalist.com, suggesting a likely boost in employee turnover. More turnover means more vacancies.

In short, the problem businesses will face is a result of strengthening in the U.S. economy: more help will be needed for increased production requirements, turnover will increase because employees have more choices, the labor market will further tighten because there are fewer skilled employees for more jobs.  Solution?  Staffing companies - they offer access to talent as well as short and long term strategies.  Businesses seek flexibility in their employment strategies in order to compete in a fast-paced, ever-changing global economy.

U.S. staffing companies are giving their customers what they want: flexibility and access to talent. These are what customers value most from staffing firms and these are what they say the industry is best at providing, so concludes a major study conducted for the American Staffing Association.