More good news ... if you are a part of this growing industry. This time our continued optimism is the result of the Federal Reserve's Beige Book report as covered by Staffing Industry Analysts:
Demand for temporary staffing "remained on an upward trend" from mid-July through the end of August, according to the Federal Reserve Beige Book report released Wednesday. Federal Reserve Districts in Boston, Philadelphia, Richmond VA and Minneapolis noted increases in temporary staffing. However, the Chicago district reported a slight softening in demand for the period.
Wage pressure remained modest, according to the report.
"Dallas reported that wage pressures were 'generally nonexistent,' with the exceptions of some airline and temporary workers," according to the report. "Hiring of permanent employees was held down in part by employers' reliance on temporary and contract workers, as reported by Philadelphia and Atlanta, although Boston noted that conversions from temporary to permanent staff picked up."
Overall, the Beige Book reported growth in economic activity from mid-July through the end of August. However, there were widespread signs of economic deceleration.
USA Staffing Service:
Regardless of possible economic deceleration through the end of the year, in any market, competitive advantages set leaders apart; competitive advantages separate the elite from the average. To secure a clear, competitive advantage for your recruiting operation, check out our Web site today:
http://www.usastaffingservices.com/
Staffing Solutions for Staffing Companies - Analysis, Insight, Opportunity
Saturday, September 11, 2010
Tuesday, August 24, 2010
What a difference a year can make!
Another very good sign for the industry from the American Staffing Association as reported by Staffing Industry Analysts:
“The American Staffing Association's staffing index rose to a reading of 95 in August, up four points from July's reading of 91. The reading is up 27% from the August 2009 reading.
The index measures changes in the number of temporary and contract workers, both weekly and monthly. The monthly measure is taken from the week containing the 12th of the month. Its baseline value of 100 was set in June 2006.”
USA Staffing Services:
To gain that crucial, competitive advantage in a growing market, visit our Web site today.
http://www.usastaffingservices.com/
“The American Staffing Association's staffing index rose to a reading of 95 in August, up four points from July's reading of 91. The reading is up 27% from the August 2009 reading.
The index measures changes in the number of temporary and contract workers, both weekly and monthly. The monthly measure is taken from the week containing the 12th of the month. Its baseline value of 100 was set in June 2006.”
USA Staffing Services:
To gain that crucial, competitive advantage in a growing market, visit our Web site today.
http://www.usastaffingservices.com/
2.4 Million Temps Per Day!
And a little more good news from the American Staffing Association as reported by Staffing Industry Analysts:
"Staffing industry employment rose 23.3% on a year-over-year basis in the second quarter of 2010 to an average of 2.4 million temporary and contract workers per day, according to the American Staffing Association's quarterly employment and sales survey. Compared to the first quarter, the number of workers employed is up 18.0%.
‘Even as the pace of economic growth slowed, staffing firms added 360,000 new jobs during the second quarter,’ said ASA president and CEO Richard Wahlquist. ‘This is an encouraging sign that there is still some juice left in this recovery and that businesses across a wide spectrum of sectors continue to experience a slow but sustained uptick in demand for their products and services.’"
USA Staffing Services:
As we have continued to note these past few months, staffing is good business! To gain a crucial competitive advantage is this hot market, check out our Web site today.
http://www.usastaffingservices.com/
"Staffing industry employment rose 23.3% on a year-over-year basis in the second quarter of 2010 to an average of 2.4 million temporary and contract workers per day, according to the American Staffing Association's quarterly employment and sales survey. Compared to the first quarter, the number of workers employed is up 18.0%.
‘Even as the pace of economic growth slowed, staffing firms added 360,000 new jobs during the second quarter,’ said ASA president and CEO Richard Wahlquist. ‘This is an encouraging sign that there is still some juice left in this recovery and that businesses across a wide spectrum of sectors continue to experience a slow but sustained uptick in demand for their products and services.’"
USA Staffing Services:
As we have continued to note these past few months, staffing is good business! To gain a crucial competitive advantage is this hot market, check out our Web site today.
http://www.usastaffingservices.com/
Staffing buyers/providers ... going steady?
Once again, Jon Osborne at SAI gives his entertaining, but quite relevant, perspective on the relationship between staffing firms and staffing buyers:
"I happened to be going through some of our survey data from 2009, and noticed an interesting coincidence.
When buyers were asked what advice they would give to staffing firms, their number one response was that staffing firms should be "more of a real business partner." Strangely enough, in a separate survey, when we asked staffing firms what advice they would give to buyers, their number one response was exactly the same--buyers should be "more of a real business partner."
So if everyone wants the other side to be a real business partner, why do both sides feel the other doesn't want it and isn't doing it? Reading the details of their comments reveals the answer--the two sides are worlds apart in terms of expectations and priorities.
Staffing buyers want a lot--quality, speed, cost control, shared knowledge, creativity and ever-improving performance. Staffing firms, presumably doing at least some of that, feel their profits are excessively squeezed and that buyers should be helping them stay in business instead of treating them as a commodity.
Is there a common ground between all those needs? Yes, and the reality is that staffing firms and buyers are already finding it on a regular basis to the tune of nearly $100 billion in U.S. sales annually.
But that common ground doesn't lend itself to terribly serious partnership; it's less like marriage and more like high school, because ultimately everyone is still open to a better deal. That instability can be tough at times, but in business it makes for progress.
A more marriage-like partnership might seem attractive, but my recommendation for the contingent world is--be happy with just going steady."
USA Staffing Services:
Not including Osborne's sharp wit, there is an incredibly important note to consider for a moment. He asks:
"Is there a common ground between all those needs? Yes, and the reality is that staffing firms and buyers are already finding it on a regular basis to the tune of nearly $100 billion in U.S. sales annually."
Probably a good time to add a crucial, competitive advantage in such a hot market. Check out our Web site today.
http://www.usastaffingservices.com/
"I happened to be going through some of our survey data from 2009, and noticed an interesting coincidence.
When buyers were asked what advice they would give to staffing firms, their number one response was that staffing firms should be "more of a real business partner." Strangely enough, in a separate survey, when we asked staffing firms what advice they would give to buyers, their number one response was exactly the same--buyers should be "more of a real business partner."
So if everyone wants the other side to be a real business partner, why do both sides feel the other doesn't want it and isn't doing it? Reading the details of their comments reveals the answer--the two sides are worlds apart in terms of expectations and priorities.
Staffing buyers want a lot--quality, speed, cost control, shared knowledge, creativity and ever-improving performance. Staffing firms, presumably doing at least some of that, feel their profits are excessively squeezed and that buyers should be helping them stay in business instead of treating them as a commodity.
Is there a common ground between all those needs? Yes, and the reality is that staffing firms and buyers are already finding it on a regular basis to the tune of nearly $100 billion in U.S. sales annually.
But that common ground doesn't lend itself to terribly serious partnership; it's less like marriage and more like high school, because ultimately everyone is still open to a better deal. That instability can be tough at times, but in business it makes for progress.
A more marriage-like partnership might seem attractive, but my recommendation for the contingent world is--be happy with just going steady."
USA Staffing Services:
Not including Osborne's sharp wit, there is an incredibly important note to consider for a moment. He asks:
"Is there a common ground between all those needs? Yes, and the reality is that staffing firms and buyers are already finding it on a regular basis to the tune of nearly $100 billion in U.S. sales annually."
Probably a good time to add a crucial, competitive advantage in such a hot market. Check out our Web site today.
http://www.usastaffingservices.com/
Saturday, August 14, 2010
21% more temporary employees than 12 months ago!
From a very interesting article by Mark Whitehouse of the WSJ that discusses the reasons why so many employers are still struggling to recruit qualified employees, despite record unemployment:
"The obstacles to moving are aggravated because many employers no longer provide the same job security they have in the past. Temporary jobs, for example, have increased 21% since September 2009 as more employers ... hire through staffing agencies to help control health-care costs and maintain flexibility."
USA Staffing Services:
This is a continuing trend that we have been noting for several months now. Check out our Web site to gain a competitive advantage during this period of growth for the temporary staffing industry.
www.usastaffingservices.com
"The obstacles to moving are aggravated because many employers no longer provide the same job security they have in the past. Temporary jobs, for example, have increased 21% since September 2009 as more employers ... hire through staffing agencies to help control health-care costs and maintain flexibility."
USA Staffing Services:
This is a continuing trend that we have been noting for several months now. Check out our Web site to gain a competitive advantage during this period of growth for the temporary staffing industry.
www.usastaffingservices.com
Wednesday, July 28, 2010
The opportunity is becoming very clear!
So it might be a good time to start offering your clients temporary staffing services.
As we have documented in previous posts, companies are using more temporary employees. Obviously, we expect this trend to continue, and intensify, in the long term.
Paul Vigna and John Shipman of the The Wall Street Journal put together a great article this week, "Temp Jobs Gain as Uncertainty Reigns," in which they report on what a few of the very largest staffing firms are saying about this trend.
Despite rising profits, big businesses remain hesitant to hire permanent employees, a reluctance that is fueling demand and higher profits for the companies providing temporary staffing services.
Manpower, TrueBlue Inc. and Robert Half International reported second-quarter gains in their businesses as employers continue to prefer the flexibility that temporary workers provide while awaiting more tangible signs that the budding recovery won't stall.
TrueBlue, a Tacoma, Wash., blue-collar temporary staffer that operates Labor Ready, Spartan Staffing and other staffing outfits, last week said profits more than doubled, aided by a 15% rise in revenue and an income tax benefit.
Chief Executive Steven Cooper said manufacturers are hiring more temps now than during similar points in prior economic recoveries. "It feels like they're hiring back full shifts full of temps," he said during an call with analysts. There may be a point when businesses become more comfortable with hiring permanent workers, "but we don't see those conversions happening yet," Mr. Cooper said.
In fact, he suggested businesses are quite happy with the flexibility offered by hiring temps, and aren't in a hurry to give that up. "They don't have to deal with the out-placing on the downside and so as we've gone through a couple recessions in the 2000s and this [last] one being a big one, lots of lessons learned," he said.
So far this year, the private sector has added 593,000 jobs, according to the Bureau of Labor Statistics' establishment survey; a little more than a third of them, 218,000, have been temporary jobs.
Bigger rivals Robert Half and Manpower each posted a doubling of second-quarter income; Robert Half, which had a 10% first quarter drop, posted a sales gain of 2% over a year ago. "We believe there is greater acceptance by companies of flexible staffing models that include a mix of both full-time and temporary workers," Robert Half CEO Harold Messmer said last week.
Manpower's revenue jumped 21%, aided by an acquisition, and built on its 13% first quarter sales gain over a year ago. That first quarter gain ended a string of revenue declines that stretched back to 2008.
Manpower, of Milwaukee, Wis., forecast third-quarter revenue will rise between 20% and 22% over a year ago. Finance chief Mike Van Handel said demand for the company's services remains solid, with "very strong" long-term trends as companies address increased demand with flexible temp labor, "and remain cautious on permanent hiring."
CEO Jeffrey Joerres noted that while the company is seeing some strength in its permanent hiring business, it is off a low pace. The trends in temporary hiring, meanwhile, are accelerating. "We think this is a secular change," he said in an interview Monday. Companies remain reluctant to hire permanent staff given the uncertain economy.
"The environment is continually improving, it's just methodical and slow," he said. Companies remain unsure of the future, so they are more comfortable with using temporary workers, he added.
Still, Robert Half finance chief Keith Waddell noted the company is seeing strength in permanent hires. "We think people over-cutback and to some degree they're having to reinstate levels of cut backs, and they can do that at a time when the supply of labor has never been better," he said, "so it's a win-win."
Robert Half reported operating income from its permanent staffing services flipped to a profit of $5.5 million from a $1.97 million loss a year ago.
USA Staffing Services:
First, let's look at some figures:
Total Revenue (via Yahoo Finance)
Manpower Inc. - $17.3 Billion
Trueblue Inc. - $1.1 Billion
Robert Half - $3.0 Billion
So, together, these three companies are billing their clients over $20 Billion a year, but do they really offer a better product to those clients than the entrepreneur making a couple placements per month? Are the candidates they recruit for clients somehow more qualified than the entrepreneur's candidates would be? I think the entrepreneur would say no. I think I would agree. I would bet we are not alone.
While some might argue that these companies must be delivering a product of superior quality or they wouldn't have clients paying them $20 Billion every year. That sounds great in theory, and it might be true, if the largest of those clients were NOT locked into exclusivity agreements as we noted in our post from a few weeks ago, Frustrations of a Hiring Company. Then perhaps, we could find out.
So why isn't the entrepreneur offering temporary recruiting services to other clients?
Realistically, it is a significant investment, in terms of both time and money, to even offer a client temporary staffing services. At USA Staffing Services, we make it possible for the right entrepreneur to compete with any of those giant staffing operations in three critical ways:
1. We fund the entire payroll
2. We manage the entire HR function (administration and compliance)
3. We assume ALL the risk for the entire operation
As a result, our Authorized Dealers have a very clear competitive advantage over the largest of staffing firms. They can devote their entire focus to developing relationships with clients and candidates -- you know, the activities that actually make money -- and they can completely eliminate any risk associated with a staffing operation in general (clients paying late, or worse, not paying at all!).
Check out our website today!
http://www.usastaffingservices.com/
As we have documented in previous posts, companies are using more temporary employees. Obviously, we expect this trend to continue, and intensify, in the long term.
Paul Vigna and John Shipman of the The Wall Street Journal put together a great article this week, "Temp Jobs Gain as Uncertainty Reigns," in which they report on what a few of the very largest staffing firms are saying about this trend.
Despite rising profits, big businesses remain hesitant to hire permanent employees, a reluctance that is fueling demand and higher profits for the companies providing temporary staffing services.
Manpower, TrueBlue Inc. and Robert Half International reported second-quarter gains in their businesses as employers continue to prefer the flexibility that temporary workers provide while awaiting more tangible signs that the budding recovery won't stall.
TrueBlue, a Tacoma, Wash., blue-collar temporary staffer that operates Labor Ready, Spartan Staffing and other staffing outfits, last week said profits more than doubled, aided by a 15% rise in revenue and an income tax benefit.
Chief Executive Steven Cooper said manufacturers are hiring more temps now than during similar points in prior economic recoveries. "It feels like they're hiring back full shifts full of temps," he said during an call with analysts. There may be a point when businesses become more comfortable with hiring permanent workers, "but we don't see those conversions happening yet," Mr. Cooper said.
In fact, he suggested businesses are quite happy with the flexibility offered by hiring temps, and aren't in a hurry to give that up. "They don't have to deal with the out-placing on the downside and so as we've gone through a couple recessions in the 2000s and this [last] one being a big one, lots of lessons learned," he said.
So far this year, the private sector has added 593,000 jobs, according to the Bureau of Labor Statistics' establishment survey; a little more than a third of them, 218,000, have been temporary jobs.
Bigger rivals Robert Half and Manpower each posted a doubling of second-quarter income; Robert Half, which had a 10% first quarter drop, posted a sales gain of 2% over a year ago. "We believe there is greater acceptance by companies of flexible staffing models that include a mix of both full-time and temporary workers," Robert Half CEO Harold Messmer said last week.
Manpower's revenue jumped 21%, aided by an acquisition, and built on its 13% first quarter sales gain over a year ago. That first quarter gain ended a string of revenue declines that stretched back to 2008.
Manpower, of Milwaukee, Wis., forecast third-quarter revenue will rise between 20% and 22% over a year ago. Finance chief Mike Van Handel said demand for the company's services remains solid, with "very strong" long-term trends as companies address increased demand with flexible temp labor, "and remain cautious on permanent hiring."
CEO Jeffrey Joerres noted that while the company is seeing some strength in its permanent hiring business, it is off a low pace. The trends in temporary hiring, meanwhile, are accelerating. "We think this is a secular change," he said in an interview Monday. Companies remain reluctant to hire permanent staff given the uncertain economy.
"The environment is continually improving, it's just methodical and slow," he said. Companies remain unsure of the future, so they are more comfortable with using temporary workers, he added.
Still, Robert Half finance chief Keith Waddell noted the company is seeing strength in permanent hires. "We think people over-cutback and to some degree they're having to reinstate levels of cut backs, and they can do that at a time when the supply of labor has never been better," he said, "so it's a win-win."
Robert Half reported operating income from its permanent staffing services flipped to a profit of $5.5 million from a $1.97 million loss a year ago.
USA Staffing Services:
First, let's look at some figures:
Total Revenue (via Yahoo Finance)
Manpower Inc. - $17.3 Billion
Trueblue Inc. - $1.1 Billion
Robert Half - $3.0 Billion
So, together, these three companies are billing their clients over $20 Billion a year, but do they really offer a better product to those clients than the entrepreneur making a couple placements per month? Are the candidates they recruit for clients somehow more qualified than the entrepreneur's candidates would be? I think the entrepreneur would say no. I think I would agree. I would bet we are not alone.
While some might argue that these companies must be delivering a product of superior quality or they wouldn't have clients paying them $20 Billion every year. That sounds great in theory, and it might be true, if the largest of those clients were NOT locked into exclusivity agreements as we noted in our post from a few weeks ago, Frustrations of a Hiring Company. Then perhaps, we could find out.
So why isn't the entrepreneur offering temporary recruiting services to other clients?
Realistically, it is a significant investment, in terms of both time and money, to even offer a client temporary staffing services. At USA Staffing Services, we make it possible for the right entrepreneur to compete with any of those giant staffing operations in three critical ways:
1. We fund the entire payroll
2. We manage the entire HR function (administration and compliance)
3. We assume ALL the risk for the entire operation
As a result, our Authorized Dealers have a very clear competitive advantage over the largest of staffing firms. They can devote their entire focus to developing relationships with clients and candidates -- you know, the activities that actually make money -- and they can completely eliminate any risk associated with a staffing operation in general (clients paying late, or worse, not paying at all!).
Check out our website today!
http://www.usastaffingservices.com/
Saturday, July 24, 2010
Small business hiring again!
Staffing Industry Analysts reports:
Thirty-two percent of small businesses plan to add staff in the second half of the year, according to a survey by CareerBuilder.com.
The survey of firms with 500 or fewer employees found that 21% plan to hire full time while 11% plan to hire for part-time positions. In addition, 6% plan to bring in contractors or temporary workers.
The survey took place between May 19 and June 3 and included 1,372 U.S. hiring managers at businesses with 500 or fewer employees.
USA Staffing Services:
Good news for staffing firms!
To gain a critical competitive advantage during this period of growth, check out our Web site today.
http://www.usastaffingservices.com/
Thirty-two percent of small businesses plan to add staff in the second half of the year, according to a survey by CareerBuilder.com.
The survey of firms with 500 or fewer employees found that 21% plan to hire full time while 11% plan to hire for part-time positions. In addition, 6% plan to bring in contractors or temporary workers.
The survey took place between May 19 and June 3 and included 1,372 U.S. hiring managers at businesses with 500 or fewer employees.
USA Staffing Services:
Good news for staffing firms!
To gain a critical competitive advantage during this period of growth, check out our Web site today.
http://www.usastaffingservices.com/
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