all occupations, from day laborer to chief
executive officer (see Figure 18). Assignments have been shifting toward occupations that require higher levels of skills
and education.
46
Businesses Need Flexibility
Flexibility and access to talent drive
business demand for staffing services.
In an American Management Association survey of human resource
Figure 18: Temporary and Contract Employees Work in All Occupations.
Percentage of Employees in Each Sector
7.8% Health Care
15.7% Technical/IT
35.1% Industrial
55.5% Commercial
21.0% Professional–
Managerial
managers at 1,248 firms, 91% said “
flexibility in staffing issues” was important,
and 95% said that flexibility was being
achieved through the engagement of
temporary and contract employees from
staffing companies. “Finding specialized talent” also was important. Saving
on payroll and benefits costs was a low
priority.
47
In an ASA poll of 500 businesses that
use staffing services, nine out of 10 said
it was important to them that “staffing
companies offer flexibility to businesses
so that they can keep fully staffed during
busy times.” When survey participants
were asked specifically why they use
staffing firms to obtain temporary and
contract employees, they cited three
main reasons (see Figure 19)
48
n To fill in for absent employees or to
fill a vacancy temporarily
n To provide extra support during busy
times or seasons
n To staff special short-term projects
20.4% Office–Clerical
Source: American Staffing Association analysis of unpublished
data from the U.S. Bureau of Labor Statistics (see note 46)
Figure 19: U.S. Businesses Turn to Staffing Firms to Fill Work Force Gaps,
Augment Their Own Staff, and Find New Employees.
Percentage of Businesses With 25+ Employees That Cite as a Main Reason
Fill in for absent employees or temporary vacancies
80%
Provide extra support during busy times or seasons
72%
Staff special short-term projects
68%
Help find good permanent employees
59%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Source: American Staffing Association, Staffing Client Survey
Besides flexibility, the ASA poll
shows that businesses also look to
staffing firms as a good source of talent
for permanent employees. Regardless of whether they need the talent on
a temporary, contract, or permanent
basis, businesses tap staffing companies
for quality talent in virtually all occupational sectors (see Figure 20).
“Use of temporary or contract
employees to smooth out labor needs
has grown substantially,” said Erica L.
Groshen and Simon Potter, economists with the Federal Reserve Bank
of New York. “Uncertainty and financial headwinds likely constrain new job
creation.” After outlining the considerable obstacles employers must overcome
to create new jobs, they argued that
structural changes may be occurring in
the economy because of management
innovations that result in leaner staffing.
“Firms increasingly hire temporary help
when they are busiest and then cut back
when demand falls.”
49 ➤
