I’ve seen in a couple of different places that 33% of businesses will be outsourcing employment. Is this why I can’t find work? Are all the good jobs going overseas? Do I have to give up stability and benefits and become a freelancer to make a living?
Dear, Third Degree,
I found the source of the statistic to which you are referring. A survey by the American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA) reports that in the next five years, more than a third of organizations expect half of their workforce will be made up of external talent.
But you don’t need to become a freelancer or a consultant to get in on this action. Staffing Industry Analysts touts U.S. Bureau of Labor Statistics (BLS) numbers that show the increase in temporary positions.
To understand this trend, take a look back at recent history. The Great Recession between 2007 and 2009 forced employers to lay off workers by the millions (according to the BLS, 8.8 million jobs were lost in the U.S.). Businesses are understandably cautious about adding jobs, particularly smaller companies who may find recent Affordable Care Act mandates expensive to implement.
Enter employment agencies. Staffing agencies specialize in one or more of three areas: temporary staffing services, personnel placement (often in a specific industry), and executive recruiting. The Select Family of Staffing Companies offers temporary jobs, temp-to-hire positions, or full-time job opportunities.
How Job Seekers Work with Temporary Agencies
A temporary staffing agency actually has two types of clients that it matches up: businesses needing staff and job seekers needing employment. We’ll just look at the job seeker side here.
After completing an application and proving work eligibility documentation, you’ll likely go through some assessments, skills testing, and interviews to determine your suitability for placement. Once accepted, the staffing company will try to fit your skills with requirements from area employers who may need a temporary for anywhere from a day or two to a long-term temporary assignment (that’s an oxymoron like “jumbo shrimp”). Businesses often have seasons when they need to ramp up production – think of accounting offices in the first quarter of the year or retail stores taking inventory before year-end.
You’ll actually be an employee of the staffing agency, who will provide your paycheck and take out the appropriate withholding and taxes. Fees are paid by the hiring companies, so there are no out-of-pocket costs for you (except for your snazzy interview outfit!). Employees are eligible for health care benefits – not from the client company, but from the staffing agency.
Temping is for you if you like a flexible schedule, enjoy diversity of tasks and working environments, need an entrance into a new company or job type, or want to use and increase your current job skills.
Temps: What made you choose to work with a staffing agency?
Do you have a job-related question? Ask Anita.
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