An international business network announced that a variety of contract labor will play an important role in the recovering global economy.
During its summit earlier this month, the Business 20 (B20) announced its recommendations, explaining that contract staffing creates an enabling environment for businesses to create jobs. The B20 is a collection of business associations, CEOs, and senior executives from a number of different sectors that represent the business community for G20 governments. The recommendationsthe B20 issues will be considered during the G20 summit in September.
Helping Businesses Adapt to Transforming Markets
In the 2013 B20 recommendations, the business network consulted a study conducted by the Boston Consulting Group and the Confederation of Private Employment Agencies (Ciett) entitled "Adapting to Change." The study explained that beyond simple needs for staffing agencies such as seasonal cycles, staffing agencies are essential for businesses because they offer companies adaptability in changing markets. According to the study, a company would not create a contract job 62 percent of the time if not for a staffing agency.
In order to keep up with expanding markets, companies need to be able to take on more work to meet the demands of the changing market. By utilizing contract staffing agencies, companies have the flexibility to take on new contracts with the rapidly changing markets.
Helping Job Seekers in Changing Employment Markets
B20 also believes that contract employment can also help job seekers by acting as "stepping stones." As markets change, so do the demands of these changing fields, requiring new skills and new areas of expertise. Contract employment can enable a new employee to learn the skills of a changing field without the company having to take on an unqualified worker full time.
However, there can be risks to employers if they are not careful about where they hire temporary workers. Many temporary staffing agencies will place employees in positions for which they are not qualified. An untrained employee could hurt a company in a changing economy by needing to take the time to train the employee thus delaying their operations or compromising their quality.
Fortunately, some alternative staffing agencies are able to provide onsite training for the contract employee, allowing a company to continue its operations while bringing in labor they know will be properly qualified.