Facing one of the largest downturns in American history, employers have been forced to make tough decisions. Which positions will we need to cut? How will employees be affected? How can we retain our clients and business if we have to reduce staff?
With the Federal unemployment rate at 9.9% in April of 2010 (which is up from 9.7% in March of 2010), one can clearly see that we are not out of the woods yet. Most experts say that the climb will be a lengthy one, and it will take years for our economy to recover. There is however some positive news. According to the Department of Labor, production grew to 3.6% in the first quarter of 2010, which was better than anticipated. It is clear that with unemployment rates at the level they are currently at, productivity levels have increased because employers are stretching their resources with fewer employees. However, the question remains: will businesses continue to meet client and productivity demands with fewer employees?
Many businesses have decided to outsource their hiring needs to staffing services in an effort to supplement their core staff and meet the rise and fall of production demands. Avoiding hiring employees that they may have to lay off during the next downturn is one key reason businesses have chosen this option. Other reasons include no loss of down time while recruiting for open positions (as staffing agencies typically have a pool of qualified candidates that are pre-screened and available for work at a moments notice), lower overhead costs, and decreased HR-related costs, such as recruiting, pre-employment screening, and payroll and benefit costs.
This flexible staffing model allows employers to focus on continuing to grow their business by adjusting and implementing employment programs to ensure that that growth needs will be met. Time is not wasted in recruiting, which can be especially time-consuming in a down economy due to the amount of available workers in the marketplace. Resources and money are not wasted in hiring employees that may eventually be laid off. Thus, owners are free to focus on business growth while staffing and HR firms supply talent and hiring systems to meet demands.
One thing we know for sure after the turbulence of the last few years is that we cannot be sure of anything. Having a staffing plan in place and a reliable resource for the times when business does spike, is one way that companies are staying on top of this unpredictable economy.
