| What's
New In the World of Staffing? |
Remember the days
when penny candy really cost a penny, and doctors made house calls?
If you do, then you probably remember when temporary help meant female
secretaries. But times have changed. Penny candy now costs a quarter,
and if you're lucky, you'll get ten minutes with a physician's assistant
at your nearest HMO. But change can be positive and progressive. The
temporary help industry is one such example. Heralded as a forerunner
of change, it provides employment to as many males as females of all
age groups in every known and growing field.
In fact, the industry we speak of isn't even called "temporary help"
anymore! Traditionally, temporary help, permanent placement, contingency
recruiting and outplacement were all separate industries. But, structural
shifts in the workforce, combined with other socio-economic forces
caused these industries to come together under the umbrella of what
we now call the staffing industry. Just as coffeehouses of the 90's
are brewing more blended varieties than Maxwell House did in the 60's,
most staffing firms "blend" their services by offering a multitude
of options to today's clientele. For example, many larger firms that
used to supply just clerical and industrial temps now also place professional,
information technology and contract (engineering) personnel. Services
range from temporary staffing to direct hire to professional employment
services.
Economic conditions, market trends and technological advances have
helped build the staffing industry into a $25 billion a year business.
And, that figure is climbing steadily. According to Goldman Sachs
International, temporary help workers are likely to reach the 5.44
million mark by 2005. For basis of comparison, this will be double
what it was in 1995. More employers than ever are using some form
of flexible staffing - nearly 80%, according to the W. E. Upjohn Institute
for Employment Research.
More companies
are handing off non-essential functions and/or departments to temporary
help suppliers. Many of these activities are labor-intensive and are
considered to offer no competitive advantage for a company. When companies
outsource functions, be it on or off site, they can focus their time
and energy on core activities. And, often they can be performed less
expensively by outside organizations, making outsourcing a cost-effective
option.
A 1997 report issued by The Monthly Labor Review found that outsourcing
is replacing direct hiring in more and more instances. Goldman Sachs
issued a statement that said part-time work, job sharing and overtime
"do not bring the cost savings that an outsourced solution provides."
Manufacturers Alliance, a Virginia-based policy research organization,
found that of their 450 member companies in heavy industry, automotive
chemicals and high-tech industries, the top three functions being
outsourced are employee benefits administration, system design and
payroll.
Also carving a
niche in the marketplace is call center outsourcing. In 1997, call
center firms achieved annual revenue growth rates of 40% or more.
Currently, about 10-15% of U.S. companies use some form of call center
outsourcing. As this service catches on as a cost-saving measure,
more and more call center businesses are bound to spring up and grab
a slice of the pie. Call center specialists can provide everything
from personnel, equipment and management of the call center site itself.
Technology is a major force behind this outsourcing trend. With companies
installing more sophisticated software products, there is a greater
need for end user support.
Systems analysts,
computer programmers, network administrators - these are just a few
of the job titles common in Information Technology (IT) staffing.
For the past several years, this segment has enjoyed a 20% to 40%
growth rate.
Many IT professionals, who at one time preferred permanent positions,
are opting for the diversity that comes with contract employment.
These professionals are attracted by the chance to work on a variety
of projects, build new skills and use the latest technology. As an
added benefit, project-oriented work often offers technology workers
an opportunity to actually earn more (while costing the client company
less) than full-time employment.
Businesses typically have at least one staff person to manage their
information systems needs, but they may very well require professionals
with specialized skills to do programming, system design and development,
local area network management (LAN), internet web site creation, help
desk staffing or project management. Many staffing firms offer fixed-price
project work or outsourced services under the label of "IT services"
or "IT professional services".
| The
"Pulse " of the Market |
With the need
for allied healthcare professionals (respiratory, occupational therapy,
speech therapy, pharmacists, technicians and medical lab personnel),
medical staffing executives have been experiencing 100% year over
year growth. These growth rates are projected to climb from 5% to
15% or more. As a result, specialized nurses (ICU, cardiac care and
neo-natal ICU) will be in strong demand.
Managed care is having a tremendous impact on the trends emerging
in medical staffing on both the types of facilities used (e.g., rehabilitation
and surgery centers), and the types of personnel needed. Physician
groups have now become the norm, thereby increasing the need for physician
support personnel.
The shift from hospitals to alternative sites has brought a new wave
of buyers onto the scene. These decision makers are more educated
than before, and are open to ideas with respect to medical staffing.
They are realizing the benefits and practicality of forming relationships
with staffing providers. It can be a great comfort to them knowing
they have a staffing partner that can find and deliver the people
with the right skills at the right time.
The professional
staffing niche is also doing very well these days. Professional staffing
refers to highly skilled, highly educated temporary employees in specific
occupations such as, but not limited to, accounting, finance, HR,
marketing and law. It also includes temporary senior executives. In
the early 1990's, professional temporary placement was recognized
by Working Women magazine as one of the 25 hottest careers. Soon after,
the National Association of Temporary Staffing Services (NATSS) estimated
that professional staffing comprised nearly 25% of the temporary workforce.
As further indication of its strength in the marketplace, in the last
quarter of 1997, the majority of professional staffing firms reported
revenue increases of over 40%.
| On-Site
is "Out-of-Sight" |
As companies use
contingent workers in a greater variety of capacities and departments,
the effort required to coordinate temporaries' activities increases.
To help relieve this burden, many staffing companies offer on-site
coordinators. In this arrangement, a staffing firm provides an individual
to handle the administrative burden of coordinating temporary workers
right at the client's worksite. This type of coordinator manages everything
from scheduling to totaling time sheets to ensuring contingent workers
stay productive.
Other staffing firms offer dedicated coordinators to manage a client's
temporary staffing function from the staffing firm's location (i.e.,
they do not work at the client's worksite). These specialists would
more accurately be described as "near-site" coordinators. In both
cases, the staffing provider's goal is to decrease the hassles associated
with temporary staffing, while increasing quality and productivity
across the client's organization.
| Staffing
Companies get "Wet Feet" |
In 1995, a mere
nine million adults in the U.S. logged onto the internet at least
once daily. Today, that number is 28 million. Clearly, the internet
has become an invaluable resource for anything imaginable - that includes
serving as an outlet for job-seekers. This increased activity has
spurred interest in on-line recruiting and hiring. Staffing companies
who link with networks can offer a more extensive range of job opportunities
to applicants. And, by the year 2000, staffing companies will likely
be able to submit resumes directly to the client company's intranet.
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Soaring
To New Heights-
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Staffing
has evolved into one of the strongest industries in the U.S.
today, and shows no signs of letting
up.
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Booming
technology, continued workforce fluctuations, and socio-economic
circumstances will define and re-define
what is truly meant by staffing.
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Staffing
is becoming an increasingly popular alternative to direct
hiring and recruiting.
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Staffing
is an excellent strategic tool - used by companies to boost
productivity, and lower costs for
maximum human resource volume.
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