Many today refer to today’s economic and hiring climate as the “temp economy”, and claim we are approaching a “permanent temp economy.” The permanent temp economy, dubbed the “permatemp” economy by NPR, has seen a vast increase in temp jobs in spite of the high unemployment rates, with nearly 13 million people entering temporary or contract positions each year. The hiring process has changed as a result of these changes in available positions, and it has become more important than ever to have a reliable Direct Hire/Personnel Consultants Professional Liability (E&O) policy in place in order to ensure that the hiring process will still run smoothly in spite of the changes it has undergone.
The Rise of the Temp Economy
USA Today attributes the increasing number of temp jobs to a reluctance to expand the permanent workforce, particularly as the nation attempts to exit from a recession. According to Forbes, a recent study showed that 42% of employers aimed to hire temporary workers, with slightly under half of those employers planning to eventually offer employment to certain temporary employees. So what does the increasing number of temporary workers mean for the hiring process?
The Temp Economy and the Hiring Process
Due to the vast differences between temporary positions and permanent hires, it is only natural that there would be differences in the hiring processes of the two types of positions. The main distinction that the temp economy brings to the hiring process is the decreased use of staffing agencies within the hiring process. In a piece for SkilledUp, Ryan Hulland, Vice President of MonMan, stated that his company was not inclined to use a staffing agency for temporary hires, as they felt that the cost of an agency would be too expensive for a temporary worker. On the contrary, a direct hire – as defined by Emerson Group – is found through the staffing agency, but hired by the company and placed on the company’s payroll rather than the agency’s. While some companies shy away from staffing agencies in this temp economy, agencies are able to handle more unpleasant aspects of the temp economy such as terminating the employment of temp hires.
About World Wide
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about how we can protect your staffing business, give us a call at 877-256-0468 to speak with one of our representatives.