The temporary employment industry is set to have another successful year, as Staffing Industry Analysts predicts it will grow at a rate of 6 percent in 2014.
Temporary staffing continues to become a more permanent fixture for businesses, and the IT sector and overall workforce continue to grow. While many firms are struggling with the implications of the Affordable Care Act, overall, 2014 is looking out to be an exceptional year for temporary staffing.
Keep an eye on these trends.
- Temporary staffing will become more permanent. Although the United States is out of the recession, businesses are still hesitant to hire because of uncertainties such as how the Affordable Care Act will affect their business, and the potential for another government shutdown. They are using temporary employees to fill workforce gaps that don’t necessarily merit a full-time position with benefits or test candidates before offering a full-time position.
- IT staffing will continue growth. IT staffing is expected to grow 7 percent in 2014, according to Staffing Industry Analysts. The success of the niche comes as many businesses continue to invest in new technology to remain competitive. IT staffing is in demand in sectors such as health care, manufacturing, energy and finance.
- Pool of temporary workers will grow. Millennials who prefer more flexible work are using temporary staffing positions to gain experience at different companies and in different departments. In addition, boomers and traditionalists are staying in the workforce longer to combat recession losses and provide for longer lifespans.
- Companies will look in-country for help. Frustrated with difficulties in communication with overseas workers, more businesses desire to hire outsourced American workers rather than foreigners to help with gaps in staffing. Your staffing service can step up to the plate to replace these workers.
- Businesses will search for workers with multiple skills. After learning how to do more with less during the recession, companies are now looking for employees who can perform multiple functions, resulting in decreased labor costs. Ensure your workers are well rounded and can perform multiple tasks for maximum hiring potential.
- The Affordable Care Act will challenge staffing firms. Employers with more than 50 full-time-equivalent employees must provide health insurance or pay a penalty, and there is no distinction between temporary and permanent employees. This will affect an already cash-flow-problematic industry because the cost to insure temporary employees is typically high.