According to the U.S. Staffing Industry Forecast, the temporary staffing industry is projected to grow by 5 percent in 2016, to a record $121 billion. This benchmark is just one of the critical staffing industry predictions for 2016. Overall, the industry is projected to have solid growth. To take advantage of this trend, staffing agencies need to embrace current trends in the industry.
Predictions for 2016
The biggest predictor of growth in the temporary staffing industry is the growth of the Gross Domestic Product (GDP). The projected GDP for 2016 is 2.7%, a healthy number alongside the 2015 GDP of 2.9%. This healthy growth rate is definitely increasing the need for temporary staff.
All skill segments have had solid growth in 2015, and that trend should continue into 2016. The segment with the largest growth is education, with a forecast growth of 15%. This growth is in response to an increasing demand from school districts for temporary teachers. The segment seeing the slowest growth is engineering. It has a projected growth of only 3%, due to a slowdown in the area of oil and gas exploration/production. Marketing, healthcare, IT, and finance are also seeing a healthy 7% growth rate. All other segments (industrial, clerical, legal and clinical) are also seeing positive growth.
Overall, the economy is not projected to enter a recession cycle in 2016, which should keep the projected growth in the temporary staffing industry on track.
How Can Your Agency Take Advantage of this Growth
Back in September, CareerBuilder conducted a survey with leaders of the staffing industry. Their findings show where things may go in 2016. It gives you an idea of how you can stay on track in the coming year. Here are some things to keep in mind:
- Sourcing quality talent remains the top priority in the industry. Many agencies are experiencing ongoing issues in sourcing the talent needed to fill client positions. They are relying on newer technologies and recruitment techniques to increase their talent pool.
- Working with clients to fill skill gaps. With the challenges of sourcing qualified talent to fill open positions, many staffing agencies are working with clients to identify where the gaps are and finding innovative ways to fill them.
- Increasing the agency’s branding to improve talent recruitment. Branding remains a major attraction for many agency employees. Improving that branding and positioning it as a quality place to work increases the chance of finding the best talent to fill client needs.
- The market remains candidate-centric. There are simply more open positions than qualified candidates right now. That means candidates can take the time to find the right position, in the right location, at the right salary. This is challenging for both clients and staffing agencies in search of talent.
The Bottom Line
Staffing agencies will see growth as the market remains solid in 2016. However, there is a growing gap between client needs, available talent, and skills. The challenge is to find ways to fill those gaps while fulfilling client needs and recruiting the best talent.
Having adequate funding available is critical in this industry environment. You need enough funds to take on more clients while paying your talent and keeping the doors open and lights on. If you are struggling with cash flow issues, you need to find a solution as soon as possible.
Factoring is an option to consider. When you have open invoices sitting there, why not free up most of the cash they represent and use it to grow your business? Factoring allows this to happen. You work with a factoring company who will review your open invoices and forward you up to 90 percent of their value. Then, you can do what you want with those funds. When the client pays the invoice, they deduct a small fee and send the rest on to you.
Keep your cash flowing with factoring and you will see success in 2016.