Preparing for the New Reality of Expectations

“Change is good,” is a mantra that goes so far back in history, the identity of its author has been lost to the ages.  But that mysterious philosopher would be hard pressed to applaud the dizzying rate of change that businesses have experienced in the last few years. Only now, after the worst effects of the Great Recession are beginning to recede, can business and staffing firms survey the new landscape and plan for the future.

One immediately apparent result is the change in expectations and behavior that employees and employers have about the employment market.

• Stepping stone positions. In recent surveys, nearly 60% of contract workers currently view their position as an opportunity to gain permanent work. While many would prefer a permanent position with their current contract employer, most have no qualms about leaving in the middle of a contract to accept employment elsewhere.
• Looking while working. More than half of contract and temporary employees admit to actively pursuing a permanent position while engaged in their current position.
• Jumping ship. Of those who successfully found a permanent position while under contract, more than 40% hired in at another company or an entirely different industry.
• Perma-temps in decline. Those identifying themselves as perma-temps declined below 10%. This can be attributable to the global stagnation or decrease in salaries, resulting in a need for both members of two-income families to retain permanent positions with benefits. The scarcity of perma-temps removes a potent weapon from your firm’s arsenal.

For a staffing supplier, the higher turnover rate has become a double-edged sword. While your firm can enhance its reputation by quickly filling these sudden vacancies, your firm’s reputation can be harmed by the perception that your screening process isn’t adequately identifying those who are likely to jump ship. The solution? Managing expectations.

Strategies to Manage Expectations.
Despite the greater propensity for employees to pursue permanent positions while under contract, over 90% of employees surveyed indicate satisfaction with their contract or temporary employment. Only 70% of employers indicate satisfaction with their current staffing solutions. Within that gap lies an opportunity to improve both client and candidate satisfaction.

• Honesty is still the best policy. While the prospect of a permanent position remains a popular recruiting tool, savvy candidates now have dozens of online resources to check a firm’s actual hiring statistics. Being truthful about the long-term employment prospects can help turn a potential ship jumper into a direct hire or long-term contract employee.
• Segment your candidate pool. With so many candidates using contract employment as a stepping stone to permanent employment, it may be time to repeal any “Don’t ask” policies your firm may have regarding inquiries about a candidate’s immediate goals. This knowledge will facilitate the segmenting of your candidate pool, enabling a better match of employer needs and employee expectations.
• Increase client communications. With employers worldwide still uncertain about the strength of an economic recovery, they continue to rely upon a flexible workforce. More communications with your clients will enable better forecasting of their needs and ensure that you’re prepared with the right candidate pool at the right time.

Today’s staffing firms are now more than providers of screened candidates. They represent an important resource for employers who wish to maintain flexibility, and for employees seeking an entry point to a permanent position. The staffing supplier who can best meet the expectations of both groups will be best positioned to maintain and gain market share.