There is a huge influx of skilled professionals and executives into the temporary employment category, which has sprung up a number of temporary employment agencies. One of the harsh lessons learnt by companies from the economic slowdown is not to bite more than they can chew. The volatile economy has left companies with no choice but to disband their long term projections and work for today. Such an attitude has changed the outlook of an average American on temporary employment.
In recent developments it has been noted that the pay rates for temporary workers overweighs those of full-timers. Temporary employment agencies have been on a hiring spree and some of them house more employees than large American corporations. In a dynamic labor market temporary workers not only enjoy the competitive pay, but also the time it gives them for other activities. The average time span of a temporary assignment ranges between 10 to 12 weeks. A lot of the work-force prefers to hang-on to the temporary jobs while looking to land a more stable job; it puts them in a win-win situation. In 2010 it was predicted that temporary workers would account for 4% of the workforce within three years, the same number was 1.65% before the recession.
Temporary employment agencies are making hay while the sun is still shining; their clients pay them a service fee and cover the temporary workers wages, payroll taxes, unemployment insurance and workers’ compensation fees. Organizations have also found it profitable to tie-up with such agencies because it reduces their costs by almost 8%.
The picture is not all rosy for temporary employment agencies as they have to shrug off immense competition from fellow agencies. The rise in the number of agencies has also lead to clients being more demanding with respect to negotiating fees and other expenses.
It is also worthy to note that temporary employment agencies are starting to dole out attractive benefits and other perks to further draw more talent towards temporary employment.
With the economy not showing great signs of recapturing its former glory, the rise of temporary employment agencies is a significant development in the larger picture.