Refer to your news source of choice and you are bound to hear about
employer reluctance to hire because of uncertainties regarding
taxation, health care, the condition of the US economy, the European
debt crisis and the associated long-term costs of hiring. Despite these
challenges, businesses still have needs for skilled human resources,
whether to replace departing employees or to buck the trend and drive
growth in an era of economic doubt. How then can business leaders
balance their need for quality employees with the concerns that are
plaguing most businesses?
The answer to this question was provided by a number of the recent
jobs reports – bring human capital into your organization through a
staffing firm. In recent job reports, over 31% of the new jobs added
were through staffing firms. Given that individuals employed through
staffing firms typically represent just 2% of the working population of
the United States, this is an enlightening figure. Positions with
staffing firms can range from short-term temporary assignments to longer
term contract roles and even roles that may become permanent within the
next year. As such, they are not simply “temp” jobs that are often
referred to in a derogatory manner. In a USA Today article posted to
their website on July 6, 2012
the story is told of a health care company using staffing firms to help
them fill administrative roles because of uncertainties about health
insurance costs. Another story is told of technology firm using
staffing companies to help them identify experts in a specific skill set
needed for their business. Both illustrate the value of a partnership
with a staffing firm.
As you plan how to either maintain or grow your business, the
lessons learned from recent jobs reports are something you too can
follow. Using staffing firms, like MiSource, Inc. (www.misource.com),
will help your business in the following ways:
- Flexibility. The unstated reason that the companies cited in
the USA Today article are using staffing firms is the flexibility
afforded to them, which helps to balance out some of the uncertainties.
Not sure you need a skilled employee for 5 years, but know you have a
critical project that could take a year? A staffing firm can find you
that resource without the long term commitment. Worried about the costs
(insurance, taxes, health benefits, etc.) of adding permanent staff,
without really knowing their true abilities or work ethic? Temp to perm
arrangements from staffing firms relieve these concerns. Are the
economic conditions in your business sector so uncertain that you fear
hiring, maybe because you have revenue streams tied to government
contracts that could become victims of the budget ax? Again, staffing
firms can provide that flexible contract labor for as short or as long
as you might need that skilled employee.
- Limit your need to hire or expand the number of internal
recruiters. Business leaders understand the risks of adding overhead,
especially in times of uncertainty. If you are looking for IT
professionals, for example, MiSource, a specialized IT staffing firm, is
talking to hundreds, if not thousands of these professionals each day.
Their ability to find quality employees often exceeds the capacity of
an internal recruiting function.
- With unemployment in the IT sector under 5%, staffing firms can
be a tactical partner in helping to identify and recruit the 95% of
professionals who already have a job. This is especially valuable if
you would like to hire top talent away from a competitor or an industry
- Morale. Some companies are finding themselves in a very
difficult position when it comes to the morale of their employees.
Caution in hiring new employees may result in increased work loads for
your existing employees. On the other hand, expanding your employee
count, only to lay them off weeks or months down the line could be an
even worse blow to employee morale. Bringing in additional resources
through a staffing firm allows you to relieve the additional work burden
on your employees, without the level of commitment that would present
itself as a layoff, should the economic tides turn against your company.
A growing number of business leaders understand the value of partnering with a staffing firm, especially during these rocky economic times. Business owners, executives, directors and managers recognize that it is their responsibility to guide the business through the “rough spots” and to seek solutions that either help them maintain their market share or even grow, while others fail. Businesses are estimated to spend between 40% and 80% of their revenue on labor costs. With such a significant investment, your approach to your human assets cannot be understated. Businesses across the country are partnering with MISource to balance the needs of the business against the economic headwinds and uncertainties facing us each day. Until business leaders become more confident in expanding their payrolls, look for staffing firms to play a critical role in supporting the ongoing human capital needs of business.