HR’s Growing Toolbox for Executive Staffing
The recovery from this past recession is producing temporary jobs faster than any other recession. Temporary workers make up 19% of all new jobs according to the US Bureau of Labor Statistics as of May 2013. The average company’s temporary workforce has now surpassed 25% of their total labor pool and over the next 10 years, over 62% of companies will increase their use of what is now referred to as the contingent workforce.
HR departments find themselves at the center of this trend and are being asked by the CEO to provide the right ratio of contingent workers and permanent staff for the company’s overall goals and strategy.
HR departments are realizing they need to look beyond the typical temporary staffing agency to find the range of part-time employees required, especially when those needs require people with VP and C-level credentials. The interim executive firm is becoming a welcome addition to HR’s workforce sourcing toolkit.
In larger companies as HR balances the strategic workforce needs of the organization with the budget restraints it will need to partner closely with the procurement department who is often in control of the contracts for temporary staffing. However, beware that not all of the contingent workforce should fall under this category. When it comes to vendor selection and contract negotiations there is a big difference between contracting with a temp agency for a few part-time accountants each quarter, and the recruitment of a part-time CFO-type person to help the organization prepare for an acquisition over the next four months.
As we continue to work with various HR departments, we are seeing the trend for contingent staffing in the executive suite increase and the need for interim executive firms to be added to the company’s vendor list.