General staffing agencies and temporary employment agencies have seen tremendous growth during the past four or five years. Such firms often need the assistance of professional commercial staffing financing to support this rapid growth in such a short period of time. If you are not in the employment industry, you might be surprised to learn about this hiring growth due to media attention that has mostly focused on flat employment numbers.
The official unemployment rates across parts of the country remain stubbornly high at 8.8 percent in some places though Wyoming, the Dakotas, Nebraska, and Utah have low rates of less than five percent. Yet these numbers don’t tell the full story of today’s economic situation. The unemployment numbers, while frequently used as a barometer for the nation’s economic health, are viewed by many as an antiquated, less than accurate method. They don’t accurately count all temporary workers, independent contractors, consultants, freelancers, part-time workers or those who have stopped looking for work. Such individuals, an estimated 42 million, fall into a sort of unemployment limbo.
Staffing, Factoring in Temp Workers and Contractors, Is Growing
As such, it might be more accurate to say traditional full-time, salaried unemployment remains high, but other types of employment such as temporary and contracting appear to be on the rise.
Ramping up large numbers of temp or contract workers to fill job openings, whether it is in manufacturing, office administration, janitorial services, security or retail is expensive. Employment agencies must often cover workers’ payroll before they themselves collect payment from the client. This lag can create cash flow troubles if left unattended. Staffing factoring or temp agency factoring can help these companies get the cash they need quickly to cover high hiring, payroll and on-boarding costs.
Recruit Top Talent with Funds from Staff Agency Factoring
For skilled workers such as IT, healthcare, and medical staff, the costs of operations are even higher. Such workers demand higher compensation packages and medical staffing factoring can help cover these costs as well as the costs of recruitment and sourcing of the best talent. With more and more companies turning to temp workers or independent contractors, the need for robust staffing agencies supported by staff agency factoring or other forms of staffing financing doesn’t look to be going away anytime soon.