Temporary Worker Use Expected to Grow

May 2, 2007 (PLANSPONSOR.com) - The amount of contingent employees is expected to grow strongly to 10% of the entire U.S. workforce within two years, with pharmaceutical, biotech and retail sectors experiencing the largest growth in temporary and contract workers.

That was a key conclusion of a new research report from Staffing Industry Analysts, a consultant for the contingent workforce industry, according to a news release.

The poll found the Fortune 1000 will expand its use of contingent workers:

  • to manage variable or unpredictable workloads.
  • to handle the strong overall growth at many companies.
  • to cope with the difficulty in finding quality workers in a low-employment environment.

According to the news release, the survey found demand for contingent labor in corporate America will grow strongly over the next three to five years with 73% of surveyed companies expecting to grow their contingent worker use.

The survey also found:

  • Procurement managers, rather than human resources professionals, will increasingly control the management of contingent labor programs.
  • The Retail/Consumer sector, which has traditionally used less contingent labor than other segments of the economy, is likely to be among the fastest growing users of temporary workers in the short term.

“The 2007 Staffing Buyers Survey clearly shows that corporations plan to significantly expand the usage of contingent labor to an all-time high within the next two years,” said Barry Asin, Chief Analyst of Staffing Industry Analysts, in the release. “As the contingent workforce grows, corporations will need to be much more sophisticated in managing this increasingly large expense. To handle this growth, corporations must look closely at crafting a well-conceived contingent workforce program, leveraging technology, and assigning talented managers to oversee this area of their operations.”

Researchers cautioned that large companies face a number of hurdles in improving their contingent worker management. The report found that decision-making about the contingent workforce is currently dispersed across several different corporate levels. Also, the typical manager with responsibility for contingent labor decisions spends only 20% to 39% of his or her time on this task, the research found.

However, the research also indicated that more companies will centralize control of contingent workers and implement technology solutions to help keep tabs on their temporary staffing programs. As the expense of contingent labor reaches tens of millions of dollars, more companies will implement better management controls, including technology platforms such as Vendor Management Systems.

To order The 2007 Staffing Buyers Survey, contact Sales at 650.232.2350 or kmarechal@staffingindustry.com .

More information is at www.staffingindustry.com .