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Staffing Firms – a great path to full-time employment

Staffing Trends
Posted on Jun 03, 2010

While staffing firms or employment agencies can be mistakenly referred to as only ‘temp agencies’, the truth of the matter is that staffing firms are an excellent way to obtain a full time job. The current economic environment has provided opportunities for employees to work in a temporary engagement where the job is categorized and destined to lead to full time employment.

Since massive company layoffs have sent the national employment rate past 10%, employees are now doing the work of many former co-workers. At the same time, recent quarterly increases in corporate profits and real GDP (gross domestic profit) announced by the U.S. Department of Commerce are stimulating economic growth. Those facts combined with many companies still invoking ‘hiring freezes’ has led to the recognition of staff augmentation by using staffing firms for temp-to-hire staffing services.

The truth is that a ‘temp’ never shows up as official corporate headcount so a company can utilize a temporary worker and wait for CFO approval to hire. Companies use staffing firms to ‘try before they buy’ with the goal to offer full time employment. Additionally, due to employee turnover in certain departments, many companies now classify certain job titles such as Administrative Assistants, Customer Service Reps, or Hel p Desk Analysts as strictly temp-to-hire job openings. Managers can evaluate an employee’s performance prior to a hiring commitment.

The moral to the story is that while unemployed candidates often specify that they do not want to ‘temp’ because they prefer only full-time ‘permanent’ employment, a temp-to-hire opportunity is a popular hiring method that only staffing firms retain that can lead to full time employment.

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Federal 1099 Crackdown

Workforce Compliance Trends
Posted on Feb 18, 2010

The Obama Administration announced today that as part of its 2010 budget, the federal government will begin a large scale crackdown on companies that misclassify 1099 / Independent Contractors.

According to expert sources, many companies have maneuvered to cut costs by wrongly classifying regular employees as independent contractors to avoid paying employer taxes and offering employee benefits.

As a solution to 1099 compliance, many companies are utilizing Uniforce’sQuick Start Staffing as a third party payroll service. Since Uniforce becomes the (W-2) “Employer of Record” for the workers that were incorrectly classified as independent contractors, companies are IRS compliant and can now retain the workers with no payroll tax, insurance, or benefits costs.

A recent New York Time article discusses this issue in length.

Read the New York Times Article

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Survey says economy improving, but slowly

Staffing Trends
Posted on Jan 26, 2010

The U.S. economy continues to improve at a slow rate, and more companies plan to add jobs, according to the latest industry survey released by the National Association for Business Economics.
“NABE’s January 2010 industry survey provides new evidence that the U.S. recovery from the Great Recession continues, albeit at a slow pace,” said William Strauss of the Federal Reserve Bank of Chicago.

Sixty-one percent of respondents said real gross domestic product will expand by more than 2.0% in 2010, up from 45% of respondents in the last quarterly survey in October.

In addition, job losses slowed with 28% of firms cutting jobs in the January survey compared with 31% in the last survey released in October. And the percentage of firms expecting to add jobs over the next six months rose to 29% in the January survey from 24% in the October survey.

The January survey took place between Dec. 18 and Jan. 7 and included 75 members of NABE.

Source: Staffing Industry Analysts, 2010

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