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Integrated Solutions Lead
San Antonio, TX

Advanced knowledge of programming language(s), software development tools and environment(s) and systems analysis and functional design

The Supply and Demand of Temporary Staffing

March 27, 2013
The Supply and Demand of Temporary Staffing

As the economy slowly emerges from recession, the number of organizations relying on a contingent workforce is increasing. Whether driven by caution or the need to creatively manage employment costs, the reality is that the demand for temporary professionals is on the rise.

 

According to Staffing Industry Analysts’ (SIA) U.S. Staffing Industry Forecast, overall demand for temporary employees across all industries is set to reach 106 percent of its previous high set in 2007. These forecasts are supported by CareerBuilder’s 2013 U.S. Job Forecast, which found that 40 percent of employers plan to hire temporary or contract workers in 2013, while 42 percent plan to transition some temporary workers into full-time, permanent employees.

 

With more opportunities available, the number of candidates opting for a contract or temporary career path is growing.

 

However, employers looking to fill some positions may experience some trouble, particularly those seeking temporary help in the finance and accounting fields. That is because 77 percent of respondents to a recent study from Kforce believe there is a shortage of qualified candidates available to fill the increased demand for temporary assignments.

 

Impact on the Market


As basic economics might suggest, the fluctuating demand creates a war for talent that impacts both the employer and the professional seeking temporary employment.

 

For those industries where the demand for workers exceeds supply, the temporary employee is likely to benefit from increased pay rates and decreased competition for openings.  For employers, however, it means that labor costs will go up and time-to-fill will lengthen as they compete for increasingly scarce resources. 

 

Organizations with a lengthy talent acquisition process will find themselves at a competitive disadvantage. That is because the best candidates often do not stay on the market long between engagements and the longer it takes for the employment decision to be made, the less likely it is that they will wait – which can hinder organizations’ ability to secure the top talent.

 

To overcome this challenge, many have turned to professional staffing firms to handle the acquisition process. By utilizing a professional staffing firm, organizations mitigate the risk of missing out on top talent and streamline the process by which candidates are vetted and placed in the temporary or contract position.  

 

Benefit to Employers/Employees


The reality is that leveraging contingent labor as a human capital strategy will continue to increase in popularity in the U.S. as organizations continue to look for ways to expand while managing cost.   

 

For organizations, hiring temporary staff often means that they can fill their human resource needs while saving money on the benefits and training typically required for full-time staff. Training alone can be a major expense that many presently do not have the resources to provide. Thus, it makes sense for organizations to seek out temporary employees who are experienced in their field.

 

Further, temporary staffing allows organizations to quickly expand or contract their labor force in response to changing market needs. When demand is high, organizations can rapidly increase their labor force. When it plateaus, headcount can just as quickly be reduced.  

 

Temporary workers also benefit from these short-term relationships. For instance, temporary staffing allows individuals to broaden their skill sets and bolster résumés to better position themselves for future opportunities. It also allows them to put to use their highly specialized skills that might not be needed by organizations on a full-time basis.

 

The result is a win-win situation which is likely to alter the supply and demand of temporary staffing even further as organizations and individuals realize the benefits of temporary staffing.

 

Click here for a PDF of this article.  

 

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About the author

KforceKforce is a professional staffing and solutions firm providing flexible and permanent placement services, as well as outsourcing solutions, in the skill areas of technology, finance & accounting, healthcare and government. Kforce operates in more than 60 offices throughout the United States and one in the Philippines.

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Comments (3) -

Baldemar Amaya

Baldemar Amaya United States
4/1/2013 10:22:44 PM #

If temp is so good why have I not gotten one single interview for a temp job since June 2012?

I am a degreed account with extensive accounting experience.

Theresa Phillips

Theresa Phillips United States
4/3/2013 6:34:16 PM #

I am interested in a temporary position with KForce, I have a vast knowledge of Secreterial/Legal , Administration, work.  Ihave worked in many different areas of expertise.  you  may contact me at (347)365-9603 and request my resume.
Thank you Theresa Phillips

Betty S

Betty S United States
4/3/2013 9:09:02 PM #

Pretty good article. I have been seeking work. I hope that staffing positions is on the rise!

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About
Kforce is a professional staffing and solutions firm providing flexible and permanent placement solutions in the skill areas of technology, finance & accounting and healthcare. Kforce operates in more than 60 offices located throughout the United States and one office in the Philippines.
About this blog
Knowledge Employed is a career advice blog and job tips resource center, created and managed by Kforce’s staffing specialists. Whether you are a professional needing career advice or a hiring authority seeking business guidance, our goal is to provide you with the knowledge and tools.