The American Staffing Agency (ASA) describes staffing as ‘an essential industry that provides vital flexibility and support to businesses, and opportunities and flexibility for employees.’ Businesses can depend upon staffing companies to source their temporary staffing needs, and by providing the most appropriate staff for those needs, staffing companies are helping the economy grow.
In an introduction to the industry, the ASA explains that the staffing industry, comprising more than 17,000 staffing companies and 11 million staffing employees, contributes nearly $120 billion to the U.S. economy through temporary and contract staffing and search and permanent placement services.
Temporary staffing benefits to business:
- Matching resources to needs for a required period of time
- Creating a more agile temporary workforce
- Sourcing extra help during busy seasons
- Fulfilling specific requirements for special projects
- Extra help when payroll can withstand the need
Temporary staffing benefits to employees:
- Offering a bridge to permanent employment
- Gaining more experience in areas of desired work
- Enabling flexible work hours
The ASA Staffing Index monthly report for February 2015 indicated a record high for the seventh week of the year. Despite a drop in temporary and staffing employment from the prior week, mostly due to East Coast weather, Staffing employment was still 5.59% higher than the same week last year.
The benefits of temporary staffing are clear, to the economy, to business, and to employees. Temporary staffing agencies should embrace the fact that staffing and recruiting industry growth is outpacing industry growth, and take this opportunity to assess their position in the market and decide if now is a good time to grow also.
It is important to target the correct workforce and encourage temporary experts to stay loyal to their agency. We have mentioned in previous blogs about the importance of on-time payment.
Cash flow can be a challenge for any company, in any specific industry. On-time payment is a fundamental must when it comes to temporary staffing, and the paydays come around quickly! Cash flow agility can be simply achieved with the help of an alternative financing solution known as invoice factoring.
Bay View Funding offers competitive programs for temporary staffing agencies that are looking to keep the cash flowing. Use your outstanding accounts receivable as collateral, and fund your payroll so you can pay your employees on time. Make use of your working capital to attract and retain the best temporary staff for the positions you need to fill. The Payroll Advance Program provides the optimum answer when it comes to even faster access to your funds. Access your funds on Monday for payroll due on Friday. Up to two days faster than many payroll factoring companies providing a similar service; giving you more time to take care of payroll and other operating expenses. Continue to help your business, and help the economy grow!
Find out how to solve your staffing company cash flow challenges in 3-5 days.
