
It seems as though I’m developing the reputation as being a bit of a rambler, so for this month’s CEO corner I’m going to do my best to get my point across as succinctly as possible. We’ll see how it goes…….
You certainly don’t need me to tell you that 2008 was a tough year on many levels. Being very familiar with employment trends, I can safely say that this past year was one of the most recessive, employment-wise, in many years. Unemployment is currently running at about 6.8% which is very high for the United States, and we read about mass lay-offs every day. However, here at Emerson Personnel Group we are keenly aware that an emerging trend among our client companies is the utilization of temporary and/or contract employees. Historically, this trend indicates the bottoming out, and subsequent rebounding, of the economy. Let’s hope this is the case in 2009!
There are four main reasons companies retain temporary/contract employees to bolster their workforce:
1. The idea of a very flexible workforce is appealing to companies who are trying to remain lean and efficient as their workload increases. Many times, as the economic landscape improves, the demand for a company’s product or service can be sporadic. Until those workload requests become more consistent, having a workforce that includes temporary employees can be an excellent way to handle the peaks and valleys nature of the rebound.
2. Bringing on contract employees with very specific skill sets for narrowly defined, finite projects is another huge benefit inherent in the utilization of such candidates. For example, an Emerson client recently brought on two contract accountants for a three month project geared toward Sarbanes-Oxley compliance. Our client had a very definite need for immediate attention to the project but could not justify bringing on two new permanent employees. The contract option met their needs perfectly.
3. Cost effectiveness! That’s right, you heard me. The cost incurred via working with a recruiting firm for temporary and/or contract employees is largely set off by not having to pay for employee benefits, payroll taxes, workers compensation insurance, time spent on recruiting, and advertising. Beyond those, there is a huge cost savings in not having to pull in-house employees from their duties in order to cover the increased workload.
4. Finally, bringing on temporary/contract employees is one of the best ways to locate top talent. What better way of assessing a potential employee’s skills and abilities that seeing them on the job with your own eyes?
So, as we slowly emerge from this brutal economy, and as your workloads begin to increase, consider calling your friendly neighborhood staffing/recruiting firm (I strongly suggest Emerson Personnel Group). Bolster your workforce with some flexible, cost effective, highly skilled and truly excellent temporary and/or contract employees. Let’s have a great 2009!