The contingent workforce has historically been a thermometer of the economy highlighting job recovering before full-time employment rebounds. According to the American Staffing Association, which tracks staffing companies that provide contingent and temporary workers to all industries, the number of people placed by staffing firms fell by one third since 2007. This equated to a drop from 3 million in 2007 to about 1.9 million in Q2 of 2009. Recovery in the labor market can be marked by the number of temporary workers, which has been steadily rising since the end of June, and was up 8 percent by early September. According to the Bureau of Labor Statistics, from October to November 2009 temporary employment increased 2.9 percent and 52,000 temporary jobs were added in November, the largest gain since October 2004. A rise in contingent staffing is clearly underway.

As we boldly march into 2010, we are entering a time in our history that will require a new way of thinking about staffing. In a recent survey conducted by Veritude about hiring in the post-recession, it was concluded that only 3 percent of companies would revert to the staffing model used before the most recent recession. Organizations are recognizing that contingent staffing can allow them to be extremely agile in any type of changing environment. Recent studies also indicate that at least 73 percent of employers will increase their contingent workforce in 2010. Among these employers, 35 percent predict more than a 50 percent increase in their flexible temporary employees. 

We have seen hundreds of our customers take advantage of the recent downturn by investing the time to evaluate the competencies and willingness of their workforce. Gut wrenching cutbacks obviously happened. However, we also witnessed some cutting of the fat, upgrading of talent, and alignment of the workforce with true corporate visions. A staffing approach including a higher degree of contingent workers in critical roles will be the answer for organizations that need to quickly attract top talent in order to execute its corporate strategy.    

Contingent workers often have experiences and skill sets that traditional employees do not. Some examples include interim executives acting as change agents leading software implementations, helping an organization go public, or creating and merging new compensation plans. This trend will obviously continue because our retirement age keeps extending. The best contract employees tend to enjoy 1-2 year assignments so they can keep learning. 

As you and your teams discuss the talent needed to meet your goals, you may determine contingent workers are a proactive model that should be a explored further. We have heard the call of our customers, and have worked diligently to locate only the best contingent staff in this marketplace.

• According to Sarah Needleman’s piece in the Wall Street Journal last week companies are adding more temporary workers with plans to keep them long-term if the economy continues to improve.   This is a big turning point for all of us and a great time for it to be happening, right before the holidays!
• The Associated Press (AP) reported on Nov 5 that stocks climbed in early trading after the positive news on jobs and consumer spending, two of the economy’s biggest trouble spots.
• Also according to the AP, the Labor Department said the number of newly laid-off workers seeking unemployment benefits fell to 512,000 last week, the lowest level since January.  Economists had originally predicted 523,000 new claims.  Initial claims serve as a gauge of the pace of layoffs and an indication of employers’ willingness to hire new workers. 
• Retailers posted their second consecutive gain in sales in October after more than a year of declines – we’re starting to spend a little more!
• Technology stocks led the market’s gains after an upbeat forecast last week from Cisco Systems Inc. and they expect revenue to grow for the first time in a year during the period ending in January.
• A recent report by Moody’sEconomy.com as reported on Stateline.com indicates that Nebraska, as well as 10 other states are showing indications of economic stabilization and even recovery, based on factors such as employment rates, home prices, residential construction and manufacturing production figures.

These are just a few indicators of a rebounding economy making us confident that 2010 will be a better year for all of us.  As our teams grow and bottom lines increase its more important than ever to acquire top talent.  We look forward to partnering with you. Happy Thanksgiving!