Author: Scott Schnierer

The recent revision in U.S. labor market data has sent ripples through various industries, including staffing. As the Department of Labor reports that 818,000 fewer jobs were created in the past year than initially thought, it becomes crucial for employment agencies and staffing firms to reassess strategies and adapt to these changes in demand, particularly in the realms of temporary staffing and accounting or administrative temp jobs.

Understanding the Revisions:

The downward revision of job growth figures, particularly in industries such as hospitality and professional services, suggests a weakening job market. While the unemployment rate remains relatively low, the increase to 4.3% unemployment indicates a softening in demand for job openings. For employment agencies or staffing firms, especially those focusing on temporary staffing and accounting temp jobs, this could mean a more competitive landscape for placing candidates, as employers become more cautious in their hiring practices.

Impact on Administrative, and Accounting Jobs:

While the Labor Department revision focuses on broad sectors, the implications for administrative and accounting roles, including temporary accounting positions, are significant. These positions often serve as the backbone of companies, ensuring smooth operations and financial stability. In a slowing job market, employers may become more selective in hiring for these roles, prioritizing candidates with diverse skill sets, certifications, and a track record of adaptability.

Adapting to the New Job Market Landscape:

For accounting employment agencies specializing in accounting and finance roles, including temporary staffing, this new data underscores the importance of staying agile. Here are a few strategies to consider:

1. Focus on Quality Candidate Placements: With fewer jobs available, the emphasis should be on quality over quantity. Ensuring that candidates, particularly those in temporary administrative and accounting roles, are not only qualified but also a strong cultural fit for the company will be crucial.
2. Enhance Training Programs: Offering additional training to temporary workers in accounting can make them more attractive to potential employers. In a more competitive market, candidates who can demonstrate proficiency in specialized areas, such as tax preparation, financial analysis, audit, and accounting software, will have an edge.
3. Strengthen Client Relationships: As employers navigate this uncertain landscape, they will rely more heavily on trusted staffing partners. Building strong, consultative relationships with clients can help ensure that an accounting employment agency or staffing firm remains a go-to resource for temporary/contract administrative, and accounting staffing needs.
4. Leverage Flexibility of Temporary Staffing: The uncertain job market may increase demand for temporary staffing solutions as companies look for flexible options to manage their workforce. Highlighting the benefits of temporary employment, especially in accounting, such as filling short-term gaps during tax season or managing financial reporting periods, can position a staffing firm as an essential partner in these times.

Looking Ahead:

Despite the recent labor market revisions, there are still signs of economic resilience, such as cooling inflation and strong retail sales. For staffing firms, this means that while the market may be shifting, opportunities remain. By adapting to the changes and focusing on delivering high-quality, adaptable candidates—both direct hire and temporary/contract in administrative, and accounting roles, a nimble employment agency can continue to thrive in this evolving landscape.

Conclusion:

The recent adjustment in job growth figures serves as a reminder of the importance of agility in the staffing industry. As the job market evolves, so too must the strategies of staffing firms. By focusing on quality placements, enhancing training programs, strengthening client relationships, and leveraging the flexibility of temporary staffing in key areas like accounting, temporary staffing firms and/or employment agencies can navigate this shifting landscape and continue to provide exceptional service to clients and candidates alike.

Why would a company or organization utilize an accounting temp agency? After all, an employment agency is not the same thing as a public accounting firm. Accounting Temp Agencies recruit, hire and employ accounting professionals as W-2 employees for a specific period of time. While there is a relative cost to engaging an employment agency or staffing firm, it does not nearly cost the same as hiring a public accounting firm, outside bookkeeper, or consulting firm. The costs are far less expensive. Temp agencies do not charge anywhere near the same hourly rate as an accountant, bookkeeper or partner at a public accounting firm.

When should a firm decide between using the above available options? The choice begins with the strategic need. If a company is seeking staff augmentation to replace an employee termination, an accounting temp agency would satisfy that need. If a company seeks an additional accounting professional with relevant industry experience (e.g. real estate or manufacturing) who can commit to a 3 month or longer specific assignment, the employment agency would also be the solution. After all, the accounting transactions keep piling up and coming. Sometimes in order to keep up with flow of business and monthly deadlines, a temporary/contract employee is the perfect fit.

Accounting temp agencies charge a flat hourly bill rate for every hour worked by the temporary employee. The client reviews and approves the employee’s submitted timecard prior to payroll and billing. Like any customer-focused service provider, a temp employment agency should craft an hourly rate range together with the client based on 2 factors.

1. The client’s budget. Clients may have a budget in mind or shopped around. Their past experience matters in the collaboration.

2. The current market pay rate range of the temporary employee. The accounting temp agency has to share its market intelligence on accurate employee pay rates in order to be able to acquire the right talent to do the job requested by the client.

Sometimes if the employment agency and client cannot agree on a price or bill rate range, maybe its best to redefine the employee job description. Scaling back the job requirements will scale back the employee hourly pay rate. At that point, a lower hourly bill rate can be offered for a slightly different category of temporary employee.

So how do these factors affect the price? Typically, an employment agency will quote an all-in hourly bill rate range based on the mutually agreed employee pay rate range between the 2 parties (the temp agency and client). The bill rate range is above the employee pay rate range because it includes all mandatory state/federal taxes, disability insurance, paid sick leave benefits, workers compensation insurance, and other payroll processing costs. Since the employment agency is officially the W-2 employer, the staffing firm pays all those payroll costs. If the client were to hire the same employee on its own, the client would be required to pay those same costs as well as any other mandatory health benefits, PTO, and 401(k) retirement costs. Additionally, the client would spend time and money on recruitment and loss of productivity due to the worker shortage or gaps in employment.

All of a sudden, the price of retaining an accounting temp agency may not be as expensive as what may appear. The temp agency handles all the following costs:

1. Recruitment
2. Job Board / Advertising Costs
3. Referral bonuses
4. Payroll Costs: State/Federal Taxes, SS/Medicare, Paid Sick Leave, Disability, Workers Comp & more.
5. Unemployment Costs – unemployment benefits to the employee when the assignment ends

Additionally, since an accounting temp employment agency complies with FLSA employment laws, a staffing firm will classify its employees as non-exempt workers (hourly employees). This in turn, allows the temp agency to manually set the hours per work week (for example, 25 – 30 hours per week). Clients who utilize accounting temp agencies can ultimately can save money by retaining an outside temporary employee to work less scheduled hours than their own full time employees.

In summary, while it’s not uncommon for a temp agency to hear responses from clients about being pricey or expensive, there are several different circumstances where partnering with a temp agency provides the most flexibility. After all, the billing stops exactly when the client chooses for the assignment to end.