In 2008 many staffing businesses began to feel the pressure of the economic down turn that started with the collapse of the subprime mortgage industry in 2007. Some agencies may have even been working with these types of companies and felt the effects immediately. Over the last 7 years, the economy has improved and staffing, as always, has been at the forefront of that change.
Staffing, as we all know, is an indicator industry. When staffing picks up, other businesses can expect growth as well. It makes sense. Companies are less confident about their hiring options since many had to go through several rounds of layoffs as the recession hit. Staffing becomes the perfect answer.
While the economy has been slow to recover this time, the important take away is that it is recovering and temporary staffing, of all varieties, is riding the crest of that wave.
Let's take a look at some of the numbers from 2014.
- Unemployment at 5.8%: as of November, the unemployment rate was holding steady at 5.8%, the lowest since May, 2008.
- Payroll increases: According to the same Department of Labor report, wages have increased by 9 cents in November. This is a difficult stat to track since wages are so reliant on location, production, and experience.
- Increased staffing index: In 2006, the American Staffing Association launched an index to track the growth of the staffing industry. It was set at 100 when it was released and during the recession dipped as low as 66 in 2009. In 2014 it remains comfortably above 100.
- 11 million temporary employees: Back in 2013, the staffing industry reported that it had hired over 11 million temporary and contract employees across all specializations.
- Sales at $122 billion: In the same report, the ASA indicated that staffing sales had also reached an all-time high.
So, what's in store for 2015?
The staffing industry is continuing to experience growth and at the same time technologies are changing the game to allow for more opportunities including online staffing. What can you do to keep the momentum for the New Year?
- Consider online staffing: Offering the ability for your pool of candidates to connect directly with hiring managers can bring in more revenue this year.
- Streamline technology: Automating processes, connecting current systems, and allowing candidates and clients to have access to self-directed portals can also increase your company's ability to source and place talent.
- Improve on-boarding procedures: It is currently believed that up to 20% of new employees will quit before their first 90 days is complete. This is a horrifying statistic and many businesses are turning to staffing and temp-to-hire options to help with the onboarding process. Your business can become a bridge to success for both clients and candidates.
Take your staffing business to the next level today!