More than two years of a pandemic economy have resulted in a paradigm shift between worker and employer. As we come to terms with this next evolution of capitalism, one undeniable change is the move from traditional to transient employment schemes.
Workers have begun decoupling from their workplaces and, in turn, their employers. Work-from-home arrangements have many employees revelling in newfound freedom, and they're less willing to return to the status quo. What's more, temp, gig and contingent-style workers are on the rise and showing no signs of slowing.
These forms of employment have long been a part of the modern workforce, but their exponential growth in popularity among employers and employees makes them worthy of re-examination. If temp and gig work can benefit both businesses and workers, then perhaps it's time to reflect on how we
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The traditional staffing business model doesn't hold up in today's world. Whether by inefficiencies or outdated notions, viewing any worker as a commodity rather than a vital asset cripples our ability to respond dynamically to an evolving labor market. It also inhibits businesses from investing in workers as skilled laborers. In an increasingly
Staffing companies put a lot of effort into sourcing, screening, testing and evaluating talent for roles that are transient or contingent and difficult to fill. It is an important service that has helped plug labor gaps in the economy while offering employment to laborers who might otherwise struggle in the job hunt. The catch is, staffing companies don't make significant money from the time spent recruiting. Instead, their profits are tied to hiring candidates.
Under the business model of most staffing companies, a client pays an hourly bill rate. Afterward, a markup is applied based on the talent's hourly pay. This markup is intended to cover taxes,
Despite a changing employment landscape, most staffing companies like how they do business and fail to consider new ways to approach staffing. Due to this shortcoming, staffing companies continue to treat their workforces as commodities and stick with practices that have worked in the past rather than engaging, nurturing, or developing their talent. They also don't offer high-quality medical insurance, paid sick leave, or other standard employee benefits.
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This shortcoming isn't the result of a lack of vision or initiative but rather of hands being tied by tradition. The current model for the temp worker industry doesn't allow for lasting change. As a result, this industry I've been a part of for many years is racing in reverse, and it's time for a change.
Temp and gig workers have always played a vital role in supporting a myriad of industries, but they have rarely received the attention, support or recognition of permanent employees.
Every good business knows that its employees are an investment. Skilled workers who are encouraged to grow and enhance their skill sets inevitably make the company more profitable. Material support, in the form of adequate compensation, medical insurance and any additional ancillary benefits, works to create an environment where employees feel valued and comfortable. Stability and appreciation can go a long way in improving not just employee retention, but also motivation.
In short, the goal is to start separating recruitment from employment.
We need to restructure our service, pricing models and client agreements so that we can invest in workers essential to our economy. Gig and temp workers will only grow as a portion of the available labor pool. By offering competitive compensation and investing in workers' abilities, staffing companies can build a staff of qualified professionals whose fungible skills allow them to provide professional services to various industries.
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What staffing companies do is still extremely valuable. A massive workforce relies on these companies to feed their families and meet their needs. To that end, the stigma and commoditization of temps vs. permanent employees need to be erased. People on temporary assignments in this fast-growing gig economy provide an important role. They aren't just intended to fill temporary employment holes; they are qualified professionals capable of satisfying immediate needs and performing specialized tasks.
It's time to help level the playing field and erase the demarcation between temp and permanent, part-time and full-time, exempt and non-exempt. They are all human beings and fellow workers who deserve reasonable pay and benefits for the vital work they do in our economy — and who deserve to have their voices heard across the American labor pool.
