Employers adopt “try before you buy” approach
As the job reports start showing signs of life with the unemployment rate declining again in March to a two-year low of 8.8 percent, one wonders if the temporary job market will remain strong. While the economy is slowly improving and Americans are finding new jobs, there has been no letdown in the temporary job market. So what is behind the growth in the temporary job market at a time when permanent jobs are on the rise?
U.S. Bureau of Labor Statistics data show employment in the service sector expanded in March, gaining 78,000 jobs in professional and business services. Over 40 percent of that gain — more than 29,000 jobs — came from temporary help services.
Among the 15,000 businesses we serve, we are seeing companies of every type and size satisfying their employment needs by hiring temporary employees first before hiring them as permanent employees. Besides the economy, the force behind the growth in temporary staffing reflects the desire of businesses to make sure new employees are a good fit. In my view, businesses are more cautious these days than in the past. They don't rush headlong into a hiring decision. Instead, they are adopting a “try before you buy” mentality. If competency is king, chemistry is queen.
One of my favorite authors, Jim Collins, says in his book “Good to Great” that businesses must get the right people on the bus and the right people in the right seats. The cost to hire and fire is so expensive and the risk is so great today, getting it right the first time has never been more important.
The American Staffing Association found that 80 percent of staffing clients believe temporary employment offers “a good way to find people who can become permanent employees.” In other words, businesses like the idea of courtship before commitment. As we survey our clients across the country, we are seeing many adopt this “try before you buy” approach. And, frankly, we believe this approach is here to stay because of federal employment regulations that keep adding more risk and costs.
Interestingly, we are also seeing a growing number of former full-time employees choosing temporary staffing work. For some, it better suits their lifestyle. The same ASA report showed 64 percent of staffing employees said their work gave them “the scheduling flexibility and the time for family that they desire.” Just as businesses like to try out employees before they hire them, some potential employees like to try the company out before they commit — it works both ways. Also, 33 percent of temporary employees prefer it “because they like the diversity and challenge of different jobs.”
The temporary staffing job market will remain strong in an overall strengthening job market. The recent recession has reinforced the criticalness of the temporary job industry to America's economy. A strong temporary job market coupled with a strengthening overall job market is good news for Oklahoma and the country.
Read more: http://newsok.com/employers-adopt-try-before-you-buy-approach/article/3565077#ixzz1LgdT8ZO1
