What’s Next for Temporary Staffing?
Last post I wrote about how in the midst of this economic recovery companies are adding and keeping temporary workers and consultants in lieu of making direct hires. Within the financial services sector I suspect that this trend will continue well into the recovery.
Before the economy crashed, we had a client who had a particularly interesting philosophy of hiring. The principals of this small fund realized that they needed a significant amount of flexibility with their business and therefore their employees. If they needed to change their investment strategy they wanted to be able to do so and quickly bring on employees who had experience in implementing the new strategy. Out of 7 employees, 2 were the Fund’s principals and the rest were Wall Street Services employees. On at least one occasion they were able to make significant staff changes and be up and running in under two weeks complete with analysts and accounting professionals who had the specific expertise to meet their new objectives.
I suspect that this model will come into favor well after the economy recovers. Everything I hear points to the pace of change and volatility in the financial will only increase. Windows of opportunity will be much shorter. So I suspect that in this environment, Financial Services will need greater flexibility with their employees. No one wants to hire people only to let them go 18 months later – so they will rely on consultants to fill the positions for which they had once directly hired.
Now this is just my theory, but it has interesting implications for my company – our recruiting will need to be more sophisticated and our benefits will need to be much more attractive. Our sales and marketing will need to target the principals as opposed to the human resources professionals.
Whether or not this comes to pass is anyone’s guess. Regardless, this industry is in store for a very different and interesting future.