15 January 2015
What a difference a year can make! Our internal statistics, in conjunction with the U.S. Bureau of Labor Statistics’ December Jobs Report, show that job growth in December ended on a strong note – setting the stage for a promising 2015! For example, the BLS reported that December’s unemployment rate fell to 5.6% – a six-year low – and capped 2014 to be the best year in hiring in 15 years. Our internal data also shows that December was a strong month in terms of job opportunities with a yearly growth rate of 82% for all new job orders coming to us from clients that were hiring. While we experienced a 33% year over year growth in full-time job orders, temporary and temporary-to-permanent jobs were even more plentiful with a 106% yearly growth rate. The prevalence of temporary and temporary-to-permanent opportunities can be attributed to the finding that 63% of employers we surveyed for our 2015 Regional Hiring Outlook have stated that finding qualified candidates is their biggest hiring challenge. This shortage of talent in the marketplace has led to what we refer to as the “war on talent,” or the struggle for one company to outdo another for a top candidate, and according to Glenn Bernstein, COO of The Execu|Search Group’s Temporary Staffing division, this talent shortage has greatly impacted the temporary employee population. “In an effort to quickly adapt to evolving industry trends and address seasonal business needs, employers are turning towards professionals to work on a temporary or temporary-to-permanent basis,” comments Glenn. “For these professionals, there has been increased opportunity –resulting in a market where supply cannot meet demand. What this means for job seekers is that there is a surplus of assignments available to people who may not have considered temporary employment before.” For example, there is a strong demand for high-level, highly specialized consultants to see a project or transition through to completion. Additionally, unemployed professionals are experiencing an increase in assignment choices and according to Glenn, “seeking temporary employment is great way of getting their foot in the door and keeping their skills up-to-date.” To remain competitive during this talent shortage, Glenn advises employers to be more urgent when hiring. “To ensure employers can attract the talent they need to keep business moving forward, it would be wise to expedite the hiring process for both permanent and temporary employees,” he says. To learn more about what December’s job growth means for this year, our 2015 Regional Hiring Outlook can be downloaded, here.
15 January 2015
As the national economy experienced continued growth in 2014, employers and job seekers alike are optimistic about what 2015 will bring. Though hiring is expected to be high across the board, the temporary staffing industry is experiencing an unprecedented level of growth. For example, internal data from The Execu|Search Group’s Employment Index indicated a 72% increase in the quantity of temporary assignments we received from clients in 2014 compared to 2013, which indicates that both clients and candidates are seeing the value in temporary staffing. According to our 2015 Regional Hiring Outlook, in which we surveyed clients about their hiring plans for 2015, 41% of hiring managers currently utilize temporary/contract staff as one of their hiring solutions. We attribute the increased usage of temporary workers to the fact that employers are now seeing concrete examples of how a contingent workforce can contribute to an organization’s financial and operational success. Glenn Bernstein, Chief Operating Officer of The Execu|Search Group’s Temporary Staffing division, advises employers to understand how this new way of thinking can be advantageous to remaining competitive in the current economic climate. As an employer, utilizing a contingent workforce in 2015 has the potential to push your business forward through: Time and flexibility Hiring managers gain more time and flexibility to react to and prepare for quickly changing or seasonal business needs. For example, companies could utilize a high-level consultant to complete a project that will only take 2-3 months instead of investing in a full-time salary for someone you are going to utilize for 2 months of the year. Not only can you rely on temporary workers for time-sensitive needs, but both parties have the chance to determine if the current role is truly a good fit for them before making a longer-term hiring commitment. Cost effectiveness Utilizing a contingent workforce alongside permanent staff is proving to be a more fiscally-sound option for organizations as you are only paying for a candidate’s skillset when you need it. Having the option to bring in high-level talent only when you need it may help to keep your hiring costs low and limit potential financial loss that comes with layoffs or turnover from full-time employees. In the end, it allows you to better manage your organizational goals and budget expectations in this ever-evolving economy and job market. Test your candidates before you invest As the general nature of the temporary staffing industry is predicated on finding qualified candidates that can help to continue regular business operations, having the time to assess how well your candidate performs before potentially making a full-time commitment is an invaluable option to have as a hiring manager. While you may get strong technical skills from a temporary employee, you will also have the chance to measure their intangible soft skills such as personality fit, cultural fit, adaptability, leadership potential, etc. to determine if they are truly the best fit for your team/organization moving forward. With all of these advantages, the U.S. Staffing Industry Forecast: 2014 Update projects that the U.S. temporary staffing industry will grow by 6% in 2015. In light of the evolving marketplace, employers are encouraged to consider utilizing a contingent workforce to work alongside full-time employees and embrace how this opportunity can positively impact their bottom line.