A Quick Look At Flexible Staffing Strategies 2009-2014
As we have been reporting for the last several years, the “industry category” that has been consistently growing since the 2007 recession ended is the “temporary help” industry, which includes employees of agencies providing temp and contract workers to employers. Current indicators suggest that this trend will continue into 2014, with the Department of Labor projecting that the number of flexible employees who work in short term temporary jobs will grow at double the rate of core jobs over the next decade.
In the years between 2009 and 2013, “temps and contract” workers accounted for 15% of all job growth in the US. In 2013, 2.9 million people worked in temporary roles, representing an increase of 28% since 2010 compared to a 5% growth rate for all other jobs.
In many regions across the country, the share of job growth credited to temporary and contract jobs were even more significant. In Cincinnati, for example, the increased number of temp and contract workers accounted for over 65% of overall job growth, 51% in Milwaukee, 46% in Kansas City, and 40% in both Chicago and Philadelphia. In fact in most metro areas of the US, a significant percentage of local market job growth came from temporary or contract jobs.
According to a recent Career Builder survey, the temporary/contract jobs that will grow at the highest rate in 2014 will be:
- Human Resource Specialists, which is a job category that will grow by 4%, representing the folks the temporary help industry hires to provide services to their clients. Average earnings for these HR professionals are targeted to be close to $27/hr.
- Customer Service Reps will grow by 3%, with an average pay rate of $14.70/hr.
- Admin Assistants will grow by 3%, with an average pay rate of $15.58/hr.
- Help Desk personnel will grow by 3%, with an average pay rate of $22.32/hr.
Other temporary job categories scheduled to grow by 3% or more include Construction Workers, Registered Nurses, Bookkeeping or Accounting Clerks, Maintenance and Repair Workers, Inspectors/Testers, Truck Drivers, Machinists, and Sales Reps… which speaks to the growing diversity of the new flexible workforces.
A different Career Builder survey found that 42% of employers plan to use (more) temporary and contract workers in 2014, with 43% intending to hire their temporary employees into full time permanent staff. The “temp to hire” employee auditioning strategy is definitely alive and well.
There is no question that since our last recession, the growth in flexible workforces and the staffing strategies that are creating them has far outpaced the growth in core employment. This trend is targeted to continue and suggests the need for employers to expand their use of flexible workforce strategies as a way to stay competitive both in terms of costs and profits. The drivers of this shift to workforce flexibility are the usual culprits—the need to optimize workforce productivity, to lower fixed operating costs, and to move quickly and nimbly in volatile markets.
For more information about how to create a temporary workforce, and/or develop or apply flexible workforce strategies in your work environment, contact our Vice President of Partnership Development at email@example.com or call Nancy Swanson at 425-454-1075 ext. 3010.