The Evolution of Staffing
Fast-forward to the year 2020. What will it be like? I expect that the staffing industry will grow quite a bit by 2020, fueled by the need, for a flexible workforce and the desire of the employee to have a flexible work environment and mobile capabilities. By 2020, between 10% and 20% of the workforce will be contingent, as more and more companies recognize the benefits of it.
Staffing from now until 2020….
In 2020 we will continue to see staffing’s services, evolve, and its delivery methods change. Commercial staffing is still roughly 45% of the overall market. However, by 2020 I believe that professional skills will comprise nearly two-thirds of U.S. staffing spend. Within that overall market! Technology will continue to strong, there will be an increase in healthcare and pharmaceutical staffing, and my belief is the whole professional sector will continue to grow.
Accounting and finance staffing will have a cyclical nature but will be strong. A number of people will be leaving this sector, that will be one of the largest areas of mass exodus and will create a lack of talent for buyers. Part-time staffing will also continue to grow. But there are other directions staffing is headed, as well. One thought is that we will have a number of high level individuals seeking temporary work to help combine the entrepreneurial status. This allows for the best of both worlds, and each provides a hedge against the other. One comes from marketing of services, such as through temporary firms or through repeat business with former clients. The other is more traditional and entrepreneurial. There are longer contracts, high level and less hands on. You can liken it to a consultant who actually rolls up the sleeves and does the work. This as we know it is all about flexibility- the ability to switch gears to either side, depending on economic and industry cycles.
For me global is the next step, more staffing companies will operate on a global basis in 2020. My clients, and clients alike are looking more for economies of scale. They’re looking for companies that will support them globally. Firms will realize that they can go global without actually having facilities overseas. The beauty of going global is that the push is not for large staffing firms, because the barriers are falling. With the availability of technology more of our communication is delivered with Skype, which mirrors the client’s needs.
At the end of the day, in 2020, people will be more educated about the staffing industry and the benefits of contingent work, it will be a much more widely accepted industry globally. As the contingent market surges, staffing firms have a unique opportunity to serve as consultants to the clients they serve. The year 2020 will bring a very interesting workforce mix, with approximately five generations in the workforce at once! The effects of the Baby Boomers and the Millennials. One of the biggest challenges for staffing companies will be the continued worker shortage. Baby Boomers are retiring but there aren’t enough younger workers to replace them. When Baby Boomers leave the workforce, it leaves the younger workers who remain without an experienced. Baby Boomers will realize that they didn’t save enough money to retire and will need to head back to work. They’ll want to work a flexible schedule, in order to maintain someone of the benefits they have from retirement, some staffing firms can use to their advantage to get some extra business.
The temp industry in general is going to have 20-25% of the workforce made up of retirees, people who retired and are going back to work. That’s going to be the demographic that just shoots through the roof.
Staffing companies and other employers will need to cater to Millennials in 2020. The Millennial generation, born between 1982 and 1998, will have a huge impact on every aspect of society, exhibiting many of the qualities of WWII generation Americans. Millennials are spirited entrepreneurial individuals, as many would prefer to own a business rather than be a top executive. Employers will need to adjust policies and practice to value the new generation, including finding new ways to motivate and reward them.
As more companies change to flexible workforce models the notion of temps being unskilled will become a thing of the past. Staffing firms that say they provide “better talent” are really going to have to come through if they want to stay in business. In order to attract the best talent, staffing firms are going to have to devote time, energy and marketing dollars to attracting professional talent. I see a staffing firm become more like a sports agent, representing and negotiating for talent.
Other challenges the industry will face in 2020 include creating or adding value to clients, shrinking margins and becoming a commodity-based vendor. Pricing is going to continue to be an issue. Clients are going to continue to commoditize our product. Customer service has to be there. It’s going be an uphill battle for us preserving margins long term. Staffing companies in general have to watch their costs. And, of course, healthcare reform and regulations are also a big issue. Healthcare reform is currently scheduled to be completely in place by the middle of 2016. This will continue to change the landscape in that staffing firms may be forced to pay fees if their temporary employees don’t have healthcare insurance.
There are certainly uncertainties and challenges on the horizon, but in the big scheme of things, we are seeing staffing landing as the center of a dynamic, flexible, theologically and work/life-enabled ecosystem in 2020.
Big Bets in Staffing & Recruitment Industry
Today’s job seekers know their worth and are aware of the competitive landscape. Ten years ago, the resume was a piece of paper, now seekers are and employers are leveraging webcam and video interviews to streamline the hiring process. It has become a seller’s market.
What will make news in 2016?
Technology, Proactive finding of candidates, social networks and digital profiles. This is going to be the news for 2016 and beyond. Taking advantage of the tools and resources that allow you the job seeker to make a sounding voice and the employer a chance to move beyond the resume.
Business, Operational and Legal Challenges in Staffing
The successes of the staffing company depend on their ability to attract and retain external talent who possess the skills and the experience to meet clients staffing needs. The staffing industry today works in an exceedingly dynamic business environment. The challenges we face in this fragmented market space is very competitive as it relates to general staffing companies seeking a stronger foothold in the professional staffing market in order to achieve a more diversified service range.
SMAC is the concept that four technologies are currently driving innovation in business. Social media sites continue to boost users, like Facebook, Twitter and LinkedIn. Mobile technologies are proving to be a must have for most people, and let consumers reach services that were unforeseen a decade ago. Cloud services continue to grow rapidly as the place to access applications and data. Analytics are forming the backbone for many business decisions, and the size and scope of data is both increasing-the noise this year surrounding “big data” and how we access it supports this. Impact of Social Media on Recruitment
Recruiting colleagues into the business is an area that has really taken the lead on using social to maximize effectiveness. LinkedIn is the primary tool used by recruiters. People will put on their profile their experience, skills, location and recommendations, so employers have the ability to narrow down the talent to what you are looking for very easily.
Big Bets in the IT Industry?
• Supporting the diversity of mobile technology is now a must for businesses. Being able to support, on the go, anywhere access, has now become an expectation to customers.
• This increase in demand for always on, and always available, sees business moving to externally hosted cloud solutions for them to be able to deliver this. For example, applicant tracking systems, that can be accessed anywhere at any time, providing real-time access to both the employer and job seeker.
Impact of Digitalization
Transforming talent management requires digitization, to be sure but it also involves leveraging social and digital technologies in ways that promote and enhance communication, collaboration, and engagement-not just between an employee and the organization, but between and among employees themselves. The logical place to start when talking about the impact of social and digital technologies on talent management is talent acquisition, where the greatest advances have been made. Social media has actually transformed every stage of the recruiting process in significant ways-so much that the traditional recruiting funnel can be recast in “social” terms. At the top of the funnel like social advertising and at the bottom of the funnel is social screening.