Employment Trends: U.S. Companies are Hiring More Temp and Temp-to-Perm Workers
May 18th, 2012As a weak economy struggles to find its feet, both large and small companies look for ways to stay flexible and agile. Forward thinking firms want a staffing strategy that allows them to grow quickly at a moment’s notice as tides lift, but they also want to cut back if an unexpected event requires them to contract.
This tendency has a few implications for the broader economy. First, the staffing sector can be seen as a reliable indicator of coming rises and falls in employment indexes. And second, a sign of increased temporary hiring suggests that companies are about to add more permanent staff, or are looking to spend newly available capital brought on by promising lending trends and relaxed restrictions to growth.
What’s Happening in the Staffing Sector?
As it happens, the staffing sector is experiencing robust growth. Hiring rose steadily in December, continued its rise in January, gained 45,000 jobs in February and has continued to show promising numbers throughout the early spring.
According to analyst expectations, the percentage of temps in the U.S. workforce, now at 1.86 percent, will soon pass 2 percent, exceeding its April 2000 peak. What does this mean? It means employers are reaching for flexibility. It itself, that’s not a sign of complete economic recovery, but it’s definitely a positive trend. Employers may not be ready to hire full time help at full time wages with traditional benefits, but an increase in temporary employees suggests easier credit and a strong interest in staffing positions that were previously beyond the reach of hiring budgets.
In another promising trend, staffing firms are reporting high conversion rates, or high levels of temporary employees who are later hired as permanent staff. In cautious economic times, companies can use temporary employees to stay flexible and keep hiring costs down, but they can also use temporary placement as a risk-free vetting process for new employees.
Both employers and job seekers should take note of this tendency. While temporary placement lacks the structure and potential wage growth of standard employment contracts, it allows both employer and employee the freedom and flexibility to change course when necessary. And it allows long term relationships to grow organically between hiring managers and their teams.
If you’re looking for ways to build your bottom line and expand your workforce, but you also want to stay flexible in uncertain times, contact the staffing experts at RPC and find out how we can help. Temporary or permanent, let us connect you with the qualified employees you need.




