By Beth Fitzgerald
Originally published on NJBiz.com - August 10, 2009
As employers look for an economic recovery on the horizon, hiring temporary workers is a way to take advantage of new business opportunities while keeping a lid on expenses, experts said.
"Employers are rightfully hesitant to hire new full-time workers in this climate," said Frank Wyckoff, president of Snelling Staffing, based in Eatontown. "While stability is returning to the market, hiring authorities don't quite have the need ... or confidence ... for permanent employees."
Rutgers University economist James Hughes said the hiring of temporary workers is a leading indicator of an economic recovery, but it's still too early to see this trend in employment statistics.
Temporary workers get the labor market moving, "because when companies make a decision to add personnel, they don't want to make a full commitment to the hire until they are assured the employee is a good fit. So they use the staffing agencies, and the temporary worker stays on the agency payroll" until the employer decides to hire.
Hiring continues during a recession, Hughes said: U.S. Department of Labor data on employee turnover for May shows that U.S. employers hired 3.7 million workers and let go of 4.1 million workers that month. The figures for June and July are not yet available.
Wyckoff said temporary workers are an efficient solution to staffing a company in difficult times. "It takes a lot of time, money and manpower to hire and train a new employee," he said. "If you only use that employee for a limited amount of time, or you're unexpectedly forced to let that new employee go, you didn't justify the use of your resources."
Christine Rowe, regional manager of the staffing firm Robert Half International, in Woodbridge, said clients are hiring professionals on a temporary, project basis, including senior staff accountants.
The company's hiring surveys find "the majority of companies are maintaining their staff levels right now, and awaiting evidence of a stronger economy before expanding. In a soft economy, they prefer to hire on a project basis because they are not sure what the business needs will be in the future; it helps the
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