It's the 21st century, and we are living witnesses of the paradigm shift that is taking place in the 'work culture' of the world as a whole. And temp workers are a big part of this evolution. Temp agencies are in charge of supplying temporary help with workers to other businesses. They also recruit and screen applicants for temporary jobs, check the references, take tests to determine qualifications, and in some agencies, they even train workers for specific jobs.
The largest segment of the staffing industry comprises of such agencies, which made up about 86% of the market in 2017. And this is understandable, as the demand for temp workers has been dramatically increasing.
In 2018, Europe had around 10 million temporary workers, compared to 16.8 million in the US and 10.78 million in China in the same year.
Employers' need for temp workers depend upon seasonal fluctuations and other factors. It could also be because an employee is on vacation or is just sick. In such instances, overtime work seems like the solution but it isn't so practical for a lot of businesses.
The use of temporary staff is especially attractive to organizations that go through a lot of 'peak periods'. This is when they're bustling with customers but do not have enough manpower to handle them all. For help, they turn to temporary staff, who put their work boots on to seize the day.
Let's peek into the industries which are aided by temp workers!
1) The Office Segment
The demand for temp workers is particularly high in the domains of servicing, retail & wholesale, financial insurance, and real estate. They're the organizations that seek experienced workers as they do not have the resources or the bandwidth to train employees for short assignments. This market is dominantly made up of large multi-establishment companies that are national in scope.
So, the kind of positions that are primarily found in this sector is that of secretaries, typists, receptionists, computer operators, accountants, sales workers, and the list goes on!
2) The Industrial Segment
This sector usually finds itself overflowing with work. For instance, a wholesaler might need extra help in shifting a very large shipment, or perhaps, a building contractor might need workers to help in giving his/her structure a good polish or finish. The absence of regular employees is another reason to consider.
The industrial sector usually needs helpers, laborers, and material movers, and many others such as food and beverage preparation workers. Truck drivers, machine operators, assemblers, and craft workers are also a part of it.
3) The Medical Segment
The temporary help industry's medical sector is filled with registered and licensed nurses. Some employees also adhere to the role of a nursing aide, orderly, or attendant. The medical sector grasped the staffing industry's attention back in the 1970s when hospitals faced a scarcity of workers. This shift occurred due to a hike in population growth, and greater health insurance coverage. The staffing industry provided this sector an alternative method to fetch medical personnel to meet the growing requirements.
The primary users of medical workers supplied by this industry are hospitals, nursing homes, and home health care set-ups. Temporaries usually fill up the vacancies for evenings, nights, or weekends at these facilities.
The demand for temp medical workers reaches its epitome during summers when regular staff members go on vacations, and patients schedule elective surgeries at the same time. Hospitals usually look to hire registered nurses, whereas, nursing homes and private households go for both registered and licensed nurses.
There could be several reasons why there's a shortage of permanent nurses worldwide. Perhaps, the nurses wish to spend more time with their families or get another degree, or it could be simply because they require more 'me time'. But one fact cannot be denied - the demand for temp workers is going through a surge, and there's even more room for the integration of temporary staffing in the medical segment.
4) The Engineering & Technical Segment
The worldwide market for temporary IT staffing reached a scale of $70 billion in revenue in 2019. It has proved to be the most sturdy out of all the staffing segments. And engineers, designers, and non-medical technicians, like drafters, engineering techs, and computer programmers are widespread here.
A lot of clients in the IT and Engineering industry come from the background of aerospace manufacturing, electronics manufacturing, shipbuilding, or repairing as it requires a lot of defense work. Automobiles machinery and chemicals are the other areas that the temp workers cater to.
The growth of temporary workers in all of these segments is owed to the rising GDP per capita, a surge in industrial production, a growing millennial population, and increasing outsourcing of HR activities and globalization. The challenges that the staffing industry will face in various countries will tip-toe around an aging population and a shortage of inexperienced or skilled workers. From 2015 to 2019, the global staffing market increased at a significant rate. And projections for 2020-2024 suggest that it is only going to rise further in the next few years.
5) The Food Processing Segment
Our lives depend upon the food industry, making it one of the most significant industries in the world. The processed food industries are valued at over $2 trillion globally and include over 400,000 businesses.
This sector is currently facing a challenge due to the growing global demand for food safety, a hike in food insecurity, and also the fact that consumers are seeking higher quality and sustainability in the food they eat.
The shifts that take place in regional economies, the rise in population, and the food consumption levels are responsible for the growth of this segment. It has been predicted that two-thirds of the world population will be living in cities, which again will increase the demand for processed food and meat proteins.
So, you can probably imagine the number of hands that would be required for the processes to run smoothly in this sector. Temp workers have been coming to the rescue of this crisis, to provide the manpower needed to deliver goods from one point to another.
The emerging markets in India, Indonesia, China, and Malaysia will further drive the growth of this segment, which means that the desperation for temp workers will go higher than it already is.
6) The Logistics Segment
Railways, Roadways, Airways, and Waterways are the primary modes of transport that the Logistics Market relies upon and the healthcare, manufacturing, trade & transport, telecom, government, and public utility sectors rely upon this market. Banking & Finance Services, Retail, Media and Entertainment, and IT sectors also depend on the Logistics Market to carry out their services.
To meet the requirements of the customers or corporations, temp workers are hired. The global trade activities of the developing economies, a rise in trade-related agreements, and global logistics infrastructure along with the advancement in the IT and the transportation sector, will have a major impact on the growth of this market globally.
The global logistics market has been registered at a CAGR of 3.48% from 2016 to 2022 and is all set to achieve a market size of around $12,256 billion by 2022.
The industries mentioned above are just the tip of the iceberg. If you dig deeper, you'll realize that the arms of temporary work stretch wider. There is going to be a significant rise in the need for temp workers in many other segments as well. Stay tuned to find out more about the temporary staffing industry!
A good workforce is the backbone of organizations and you can empower yours with Stafflist.