The Future of Staffing

by Julie McCoy

Where is the workforce heading over the next decade? What is the optimize mix of employees for my company and how will it affect how I manage my business?

Below are excerpts from an article published in Staffing Industry Review, January 2011 to help answer these questions. See a link at the bottom for the full article.

Staffing in 2020:
"A Good Place to Be"

Most staffing execs we spoke with say they expect the staffing industry to grow quite a bit by 2020, fueled by the need, on the one hand, for a flexible workforce, and on the other, desire from the worker for a mobile, educational and flexible work arrangement.

By 2020, between 15% and 25% of the workforce will be contingent, as more and more companies recognize the benefits of it, believes JoAnn Wagner, CEO of SOS Staffing.

Wagner believes staffing in the United States will grow and start to catch up with Europe, where the industry is significantly larger right now. "I think that's a possibility," she says.

"Well over 20% of companies will use staffing as of 2020," foresees Scott Wintrip, founder and president of StaffingU. "Right now that number is in the teens. It will be, by best estimate, mid-20s. This is in alignment with what the BLS Bureau of Labor Statistics has predicted."

The Drivers

David Searns, president and CEO of Haley Marketing Group, says the climate indicates sunny weather for staffing, for various reasons. "Best guess is that we're going to see a very good time for staffing," he says. "Work is changing. People want more control over their employers, duties, schedules and lives. This is a HUGE opportunity for staffing firms to play the role of the true workforce partner, enabling organizations to find creative, on demand solutions to talent acquisition. The movie industry already follows this model. Other employers are catching on."

Consultant Tom Kosnik emphasizes customer savings and other drivers. "There are so many external factors influencing the growth of the staffing industry," he says. "Economics is the big variable. It is more cost effective for companies to outsource a certain percentage of their workforce, plain and simple - on-boarding costs, off-boarding costs, reducing unemployment expenses and healthcare expenses, etc. From a dollars point of view, it makes sense. Legal is the other big variable. Buyers will want to mitigate liability down to a staffing vendor. And who would not? To quickly staff up and retract a workforce without tons of liability, this will be desirable.

The Workforce in 2020

Baby Boomers Retiring: A Challenge and an Opportunity

Lynn Taylor, workplace expert and author, calls this cohort GU: Generation Unretired. "Baby boomers are not retiring and retirees are not either," she says. "That is not to say they are all working for corporate America. Many will be highly sought after as project employees who can call their own shots because they have the work savvy and experience that their more junior counterparts do not possess. It takes years of experience to develop the intangibles, such as diplomacy, which are critical to a work deliverable."

Lines Are Blurring

We are increasingly seeing contingent and perm workers working side by side, and in the future, this is more likely to be so.

Dan Pink is a thought leader on employment and workforce trends. He says, "I think that the difference between who's 'contingent' and who's 'permanent' is going to grow ever more blurry. That's already happening. One of the biggest changes in the world of work over the last two decades has been a massive shift of risk from organizations to individuals. For example, in my father's generation, most workers had defined benefit pensions. Today, most have 401(k)s and other defined contribution pensions. The burden for saving for retirement is now on the person more than the company.

Flexibility

As we have seen, both companies and workers want flexibility. The seeds of this in the workforce are already planted: for example, we're already seeing several bills including the Working Families Flexibility Act, which would give workers the right to request flexible work terms and conditions such as number of hours, times and the place of work. Employers would be required to follow certain procedures once a request is made.

Says Taylor, "Many employees want the freedom to step out of corporate America. Workers are happy to take matters into their own hands. A feeling of 'there are no guarantees' drives the very core of the meaning of contingent. I am contingent because the only guarantee I have is placing my career future in my own hands."

Full article:

http://www.staffingindustry.com/Research-Publications/Publications/SI-Review/January-2011/2020-The-Future-of-Staffing-Where-Will-You-Be

Cerius RSS Feed

The Human Capital Institute "Gaining a Business Edge through Interim Executive Management".

Featured White Paper

We're Here To Help

Find The Right Solution
Contact Us