Staffing Firms Implementing New Services

Survey Reveals Majority of Staffing Firms Implementing New Services and Investing in Marketing

The “How is Your Firm Adjusting to the Economy” January 2009 survey investigated the tactics Staffing Firms are employing to transition to the new economic situation. The most profound statistic was over 58% of those surveyed reported implementing new services and re-positioning their company to attract new clientele. 52% of the firms are investing in more marketing and a sales force increase as the major strategic effort.

The survey went on to explore staffing firm predictions for the hiring return and major concerns for 2009. Surprisingly, 57% predict the staffing downturn will lighten by the end of Quarter 3 2009, returning to near normal hiring conditions by fall. 65% of firms surveyed feel the overabundance of resumes flooding the market and resume quality issues to be the two major concerns for 2009. As the talent pool continues to expand, firms are struggling with the quantity versus quality conundrum.

Over 7,500 Staffing Firms and Independent Recruiters were surveyed. This survey was conducted between January 16th, 2009 and February 6th, 2009.

In summary, the survey found these key points:
• 52% are investing in increased marketing efforts and a sales force increase as the number one strategic effort for business development
• 58% are implementing new services and re-positioning their company to attract new clientele
• 57% predict the staffing downturn will lighten by Q3 2009
• 65% of staffing firms find the overabundance and quality issues of resumes the number one concern for 2009

“With the weakened economy and raising unemployment rate across the US, the exponential increase in the talent pool is causing real issues for staffing firms and the recruiting industry as a whole. It is important that staffing firms work towards improved efficiency and possibly technology solutions to help make sense of the mess,” Sean Bisceglia, CEO TalentDrive.

Ref: WWW.HR.com

Employers Believe Hiring Will Improve as Unemployment Numbers Worsen

Employers Believe Hiring Will Improve as Unemployment Numbers Worsen

Despite some bleak employment news this week, a large number of executives appear to be bullish on a need for talent.

More than three-quarters of executives surveyed by Korn/Ferry International Inc. say demand for talent will increase more in the next five years than in the previous five.

In addition, 52 percent predicted a recovery in 2009, with 35 percent saying it will be the second half of the year before there are signs of improvement. Another 39 percent said labor market challenges will linger until 2010.

Half of executives looking for jobs said they are “very confident” in their abilities to find one in 2009 that meets their expectations.

The Korn/Ferry report, released Thursday, February 5, arrived as the number of initial jobless claims in the U.S. climbed 5.9 percent the week ended January 31, the Department of Labor reported.

There were 626,000 initial claims for unemployment filed, up from the previous week’s revised figure of 591,000, according to the report released Thursday, February 5.

The Labor Department report corresponds with the most recent Monster Worldwide Inc. employment index, which fell 13 points to a reading of 118 in January. It is down 42 points from a year ago.

“The fact that employers have chosen to begin recruiting in 2009 on a cautious note is not surprising given the uncertain nature of the global economy,” said Jesse Harriott, senior vice president and chief knowledge officer at Massachusetts-based Monster.

“However, there are a few bright spots, including recruiting activity in public administration as well as in the agricultural sector. Furthermore, online recruitment activity still remains higher than levels seen during 2003 after the last recession.”

Monster’s index is based on a review of online job ads taken from a selection of corporate career Web sites and job boards, including Monster.

Ref: http://www.workforce.com/section/00/article/26/15/94.php