The Pendulum Swing
By Bill Yoh, CSP, TSC
The notion of trying to
predict when, where, and how our
economy and labor market will return
to the glory days is daunting because
an accurate prognosis is likely impos-
sible. However, as staffing professionals,
we can take solace in the fact that the
medium- and long-term prospects for
our industry are as solid as they have ever
been. I principally believe this because of
a concept I call the “pendulum swing.”
As many of you know, I have talked a
lot this year about talent advocacy—the
idea that we all need to do everything
we can to promote the best interests and
well-being of our contract employees.
The way power and control move back
and forth in our industry is one of the
key reasons I believe this is currently
such an important issue.
When economic times are weak,
buyers of temporary labor hold most of
the control. This means that there are
more candidates than there are openings
and that staffing firms are very hungry
to win their business, thereby driving up
competition and driving down prices.
Thus, the pendulum has swung over to
the buyers’ side.
Conversely, when economic times are
strong and labor markets are tight (i.e.,
low unemployment), candidates tend to
have more control in the process, so they
command higher wages and have more
choice in the assignments they accept. In
these instances, the pendulum has swung
over to them.
While unemployment currently re-
mains high—with employers continu-
ing to focus on productivity gains to
fuel growth, and on holding onto much
of their cash to remain conservative—all
signs clearly point to impending talent
shortages and a pendulum swing back
toward talent.
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