Job Market Creating Perfect Forecast for Staffing Industry
DALLAS, TX (June 27, 2007) – In the world of entrepreneurship, it can be hard to figure out what's a good business model and what's not. The more research one does about franchise opportunities, the more confusing the entire process can seem. One business that is cutting through the uncertainty of buying a franchise and also benefiting from competition to find great employees is the staffing industry.
It's All in the Numbers
The staffing industry encompasses a broad range of businesses that focus on human resources, recruiting, employment and personnel services. These staffing and personnel services firms match employers with candidates—a need that is growing among employers. The American Staffing Association (ASA) reported that, in 2006, staffing firms employed 2.9 million temporary and contract workers per day.
More impressive than how the staffing industry looks today is the picture analysts paint for the future. According to the U.S. Bureau of Labor Statistics, the job openings rate for December 2006 was up by 3.2 percent, the highest rate since February 2001. This increase results in a tighter job market, which is positive news for staffing firms since companies turn to them when they have difficulty finding qualified candidates on their own.
Employers say the benefits are clear – some find it more cost-effective to turn to a staffing firm for their hiring needs, while others tout that the candidate search results are better quality. Furthermore, staffing firms are often able to pre-qualify candidates', which saves an employer time that could be used in more productive ways.
Job market trends and the quality of services provided by staffing firms are creating competitiveness among employers who are trying to find the best candidates. One of the standouts in the staffing industry in terms of pairing employers with qualified candidates and creating successful franchise owners is Snelling Staffing Services, a nationwide staffing firm that provides temporary, contract, temp-to-hire and career positions.
A Dallas-based company who has been in business since 1951, Snelling generated more than $500 million in revenue in 2006. And, they're not the only staffing firm that's reaping the benefits of a tight job market. A resource for the staffing industry, Recruiting Life, sponsored by the National Association of Personnel Services, notes on their Web site that the more than 30,000 staffing, personnel services and employment companies in the U.S. boast revenues of nearly $87 billion annually.
While the job market is known for it's ups and downs, the current forecast indicates that the outlook for job seekers is positive, which means that employers may find that there's more competition for qualified candidates. A recent report from the National Association of Colleges and Employers states that employers plan to hire 17 percent more graduates from the class of 2007 than they did in 2006. And with an aging population, a growing job market and a smaller generation to fill the shoes of retiring Baby Boomers, these trends could result in tremendous growth for the staffing industry and the franchises that serve it.
Entrepreneur's startup kit dedicated to the staffing industry stated, "[The U.S. Bureau of Labor Statistics] forecasts that personnel supply services will be the fifth fastest-growing industry through 2010." The U.S. Bureau of Labor Statistics also recently reported that the employment services industry will create the most jobs through 2014. This indicates that more companies will demand, utilize and depend on staffing companies to provide their greatest assets and needed resources.
While the industry is on track to be asked to fulfill more career demands in coming years, there will also be growth in the temp-to-hire sector, which can be seen even in 2006's numbers. According to ASA, temporary help sales in the fourth quarter of 2006 came in at $18.6 billion, a 0.7 percent increase over the same period in 2005.
Leading By Example
To gear up for the ever-growing need, Snelling offices around the country have been working together to provide an unmatched level of service to employers who are using staffing services. The company's leaders have the experience to guide their franchise owners and offices. And, they work hard to make sure they consistently lead the industry in training techniques and utilizing cutting-edge technology to better leverage efficiencies for clients. For example, Snelling University provides step-by-step training programs on delivering temporary, contract, temp-to-hire, career placement services and sales management; "virtual" classes can be utilized via the company's Intranet; and archived training classes are available 24 hours a day, 7 days a week, 365 days a year.
Because Snelling recognizes that their strength is a direct result of the stability of their franchisees, they strive to ensure that office owners have all the tools necessary to succeed. Live telephone labs, computer workshops and other resources combine to create an intensive training program that ensures new business owners have all the tools they need. Once a franchise gets off the ground, the owners have access to Snelling's award-winning marketing program that allows individual offices to tailor materials to their needs. Web site support and hosting for franchisees helps Snelling offices properly position themselves in the market.
Snelling is also able to champion franchisees by offering recognition programs, a top-notch operating system and an attentive support staff. When a new business owner is ready to take the plunge into the staffing world, Snelling prepares them to meet the demands of this growing industry.
As the staffing industry continues to head into a growth-spurt, personnel-related franchises will prove to be worthwhile investments for passionate small-business owners looking to enter the franchise market. And, with a system in place to ensure the success of office owners, Snelling Staffing Services is poised to meet the demands of a booming job market while supplying employers with highly qualified candidates. If you would like to learn more about how to become a Snelling franchise owner, visit www.snelling.com.
About Snelling Staffing Services
Snelling delivers temporary, career and professional staffing solutions to companies in every region of the country. After more than 50 years of innovation, Snelling knows how to connect people and businesses. We focus on helping clients to achieve priority driven results. With true consultative sales and ongoing quality reviews, we make sure we maintain alignment with your objectives to deliver the most productive solution in an ever-changing environment. Snelling delivers results with staffing expertise that connects people and businesses with the power to thrive!
David Lamb is Vice President of Franchise Development for Snelling Staffing Services based in Dallas, Texas. With more than 50 years of innovation and helping our clients achieve priority driven results, Snelling has approximately 200 offices nationwide.
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