The 3 Reasons Smart CEOs Use Temporary Staffing in an Uncertainty Economy

President Obama is predicting an upswing in the economy. But, if oil prices remain where they are or drop further, the economy of oil-dependent areas could feel the effects and fall back into a recession. With all this uncertainty, many corporate leaders are wondering how they can maintain a productive staff while operating at a profit.

As an answer, many rely on a temporary solution.

“I can’t think of a business that wouldn’t benefit from using temp workers,” said Kasey Moran, CEO of TRAC Staffing. “For example, our company frequently works with medical and light industrial manufacturing operations to help expand their workforces without the HR headaches of recruitment and long-term expense of adding new employees to their payroll. These positions are more than paper pushers. These are jobs that require specially trained employees who have to be ready to work when a company needs them.”

Economic Uncertainty

On Thursday, February 17, President Obama released his annual report to Congress, which stated that economic policies are fueling a recovery from the 2008 financial collapse. The report includes several proposals, such as the “middle class economics package” with tax credits for childcare and education, job skills training, paid leave programs, and college assistance.

Adding to the report, Jason Furman, chairman of the White House Council of Economic Advisers, stated that falling oil prices could add an approximate $70 billion boost to the U.S. economy.

However, areas like Tulsa, Oklahoma and other oil-dependent regions don’t see the drop in oil prices as a cause for celebration. The state of Oklahoma, for example, currently has a $300 million budget deficit that is expected to increase as gas production tax revenue falls.

It is predicted that industries in Oklahoma will soon feel the effects of an oil industry slump, which could include hiring and salary freezes and layoffs.

Can Temporary Staffing Help Avoid These Employment Pitfalls?

One thing that is certain about today’s economy: uncertainty.

Which is why more and more companies with immediate needs for trained, flexible workers are utilizing temporary workers to bolster and maintain their staffs.


Three Reasons Smart Companies are Using Temporary Staffing:

  1. Fast, Efficient, and Cost Effective

Staffing companies have positioned themselves as a partner to a company’s HR division.

“We help keep costs down,” said Moran. “Whether you need one position filled or many, bringing on a temporary employee is a simple line item. There’s no application, reference checking, drug screening, and payroll tax-related expenses. Plus, staffing companies can provide pre-employment orientation before an employee walks through your door. And when on-site training is reduced time spent on the floor is increased.”

Once the contract is complete, the unemployment burden falls to the staffing company, not the employer. There’s no impact to a company’s unemployment contribution rate. And if an injury occurs on the job, the staffing company, not the employer, is responsible for the cost.


  1. Quality Candidates, Immediately Available

Every week, staffing firms across the United States hire three million temporary and contract workers. That’s an immediately available pool of prescreened, qualified candidates for employers to cherry pick.

Where do these candidates come from? Some are newly relocated individuals who use staffing firms to test market available job opportunities. Others are recent graduates looking to expand their resumes. Still others are candidates hoping to “get a foot in the door” of their dream job.

“The big plus for employers,” said Moran, “is that these are highly motivated individuals. When candidates walk through the door, they want to shine to prove that they are the best person for the job.”


  1. No Liability or Commitment Required

You wouldn’t buy a car without a test drive, or a house without having it inspected.


CEO of TRAC Staffing Kasey Moran

“Well,” Moran said, “using temp workers is the equivalent of taking that potential new car out for a drive. A job interview can tell you a lot, but it’s no substitute for actual on-the-job performance.”

If a temporary employee is a fit for a full-time position, on boarding is quick and easy. Should the temp not work out, the employer can easily end the assignment without a cumbersome termination process.

“It really is a win for everyone involved. The worker has flexibility in selecting jobs and the employer gets people who are trained for a specific position and ready to work at a moments notice.”