Staffing Issues

Q&A About the Staffing Industry
Nary a day goes by when business owners and leaders fail to question me about the local economy or the condition of local employment. It’s to be expected that these things are a concern, as they affect the business decisions within the community. They listen to the information presented and understand how to utilize it. However, when I discuss the staffing industry itself, it becomes clear the information offered is a little more foreign. Therefore, it seemed sensible to present a list of frequently asked questions (FAQs) on the staffing industry. I hope it helps.

How big is the staffing industry?

The staffing industry generated approximately $62 billion in revenue in 2002: $55 billion from temporary help services and $7 billion in permanent placement services.

How many companies use staffing services?

Ninety percent of companies use temporary help services.

How much has the staffing industry grown?

Average daily employment for temporary help services has increased at an average rate of 10 percent per year over the past seven years.

What accounts for the growth of the industry?

America’s workforce is changing as more and more people are looking for the flexibility temporary work provides. Companies are tapping into the flexible labor market to keep fully staffed during busy times.

Do staffing firms charge employees a fee for temporary assignments?

No.

How long do people hold temporary jobs?

While specific jobs may last from a few hours to several years, the best estimates for the average tenure of temporary and contract employees range from three to five months.

What types of assignments do staffing companies offer?

Jobs range from light industrial to CEO positions and are available in virtually all occupations.

What are the trends in the kinds of jobs being assigned?

The fastest growth is occurring in professional and technical occupations.

How many staffing companies are there in the U.S.?

There are about 7,000 firms that have been in business one year or more. Those companies operate approximately 20,000 offices.

What kind of pay and benefits do temporary and contract employees receive?

To attract the most qualified employees, staffing services offer highly competitive wages and benefits. The average temporary or contract employee earns more than $10 per hour. In fact, some earn more than their permanent counterparts. Most staffing companies offer health insurance, as well as vacation and holiday pay, and many offer retirement plans. Virtually any temporary or contract employee who wants benefits can find a staffing firm that offers them.

What kinds of services do staffing companies provide?

Staffing services include temporary help, permanent placement, temporary-to-permanent placement, long-term and contract help, managed services (often called "outsourcing"), training, human resources consulting, and PEO arrangements, in which a staffing firm assumes responsibility for payroll, benefits, and other human resource functions. IBI