Workforce Trends – time to reboot how we staff our companies?
We wanted to share with our customers an edited version of a recent article by John Zappe published in The Fordyce Letter. Here’s the data Mr. Zappe is referencing—data from a recent study conducted by Duke University, polling over 500 US CFOs.
It would appear that US companies are shifting away from a reliance on full-time, permanent workers and moving to workforces with larger representations of temporary, contract, and part-time employees.
When I see data like this I remember back to the days when I first became a student of staffing and heard futurists like Charles Handy (author of Age of Unreason) talking about the future of the work force looking like a clover leaf—33% core employees; 33% temp employees (auditioning for core positions) and 33% outsourced providers (doing work for an organization that fell outside the organization’s core competencies). Mr. Zappe attributes the current trend to “a fragile economy and the looming implementation of the national healthcare program.”
As reported in this study, 59% of CFOs have increased temporary and part-time workers and are turning with greater frequency to outside consultants and advisers. “The results show the emotional impact of the recession lingers on, keeping CFOs wary about spending, especially on hiring, even as they are more optimistic about their company’s financial health.”
The level of optimism about profitability was good. US CFOs reported their expectations that profits will raise an average of 10%. At the same time, they predicted hiring to stabilize at the current low levels, overall headcounts to increase by only 2%. Outsourced employment was targeted to grow at 3%–significantly faster than other types of workers.
Economic uncertainty was cited by 44.3% as the reason for not hiring permanent full-timers. The new healthcare law was cited by 38%, while 24% said salary considerations kept them from full time hiring.
Of the 28% of companies reported to be employing workers outside of the US, almost 75% expected to add additional workers in the coming year, with the majority of them adding at least as many overseas as in the United States.
This article was prepared by Kyle Fitzgerald, Client Solutions Manager of the PACE Staffing Network using information from a variety of sources.
For a conversation with our consulting team on what this change in workforce demographics means to you and your company, email us firstname.lastname@example.org. Our mission is to help companies use alternative staffing strategies to their competitive advantage.