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Contract StaffingFrom Staffing Industry Analysts to the Associated Press (AP), there seems to be one hot topic this summer: contract staffing.

The word is that contract hiring is going to continue increasing throughout the rest of 2013, as it becomes more evident that contract staffing has carved out a permanent place in the American workforce. Consider the following statistics from recent reports on the Internet:

  • 31% of companies surveyed by CareerBuilder plan to hire contract workers, up from 21% last year. (
  • The third quarter of 2013 is expected to mark the 15th consecutive quarter of year-over-year increases in contract hiring. (G. Palmer & Associates via
  • Contact/temporary work accounted for 15% of all American job growth in the past four years. (CareerBuilder via Staffing Industry Analysts)
  • The number of contract/temporary workers has jumped by more than 50% since the end of the recession. (AP)
  • 3/4 of the economists surveyed by the AP believe the increased use of contract workers is the start of a long-term trend. (AP).

What is behind these statistics and all the buzz surrounding contract staffing?  The economy is still one of the biggest factors.

“Companies are adding more employees to keep pace with demand for their products and services, but they’re not rushing into a full-scale expansion of headcount in light of economic headwinds that still linger today,” said CareerBuilder CEO Matt Ferguson.  “The projected surge in temporary hiring from July to December is evidence of both a growing confidence in the market and a recession-induced hesitation to immediately place more permanent hires on the books.”

But Ethan Harris, global economist at Bank of America Merrill Lynch, does not believe the trend is tied solely to the economy.

“There’s been a generational shift toward a less committed relationship between the firm and the worker,” he said.

So the question is, with all this talk about contract staffing, are YOU talking about it with your clients?  If not, you could be missing out on a huge opportunity to increase your sales and create a steady stream of income for yourself.

Don’t assume that your clients aren’t using contractors or are not interested in them just because they don’t discuss them with you.  They may have just assumed you don’t handle contract staffing.  When you start talking about contract staffing, you might just be surprised by the results!


First the good news: the economy is growing and companies are adding jobs.

The bad news?  The growth is slower than everyone would like and has slowed since the beginning of the year.

Why?  Well, as ADP CFO Jan Siegmund explained in an interview with Fortune magazine Editor-At-Large Geoff Colvin, small businesses in particular are still scared to hire due to a number of economic factors.

Hiring Trends“Since the beginning of the year, we believe that potentially the tax rate changes had an impact and anticipation of the healthcare reform may impact hiring decisions, as well as the reemergence of payroll taxes,” Siegmund said.

Hiring appears to be particularly slow for companies in the 30 to 50 employee range, he added.  This is most likely due to the employer mandate of the healthcare reform law known as the Affordable Care Act (ACA) or Obamacare.

In 2015 (recently pushed back from 2014), the employer mandate will require employers with 50 or more full-time or full-time equivalent employees to provide healthcare insurance to those employees.  Employers who are close to the 50-employee threshold may choose not to hire to avoid being subject to the employer mandate, Siegmund said.

This could be bad for recruiters who depend on hiring for their livelihoods.  Or it could create an opportunity for them to position themselves as a strategic partner for their clients.  Simply not hiring to avoid Obamacare is not going to be a good strategy for companies trying to grow.

Recruiters can provide a viable solution.  You can provide contractors who are W-2 employees of a contract staffing back-office.

That way, small companies can get the help they need to continue growing without being subject to the employer mandate.  As the employer for the contractors, the back-office assumes all of the employment responsibilities, including Obamacare compliance.

To get started, simply let your clients know that you can provide contractors and align yourself with