According to CNN reports, the global economy is facing the possibility of a recession. The latest reports say it is highly likely that the global economy will experience a recession in 2023, with a 98% probability. Despite the overall gloomy forecast, the United States currently stands out as a positive aspect, with over 10 million job openings as of November 2022.
Preloader Close
Is Your Business Recession Ready? Preparing for Economic Downturns
How a staffing agency specializing in manufacturing and the light industry can help you keep productivity high during a recession?
In light of this, businesses must find new ways to stay competitive and protect themselves from market difficulties. One solution that can help is working with a manufacturing staffing agency. These agencies can provide businesses with the skilled workers they need to fill job openings and maintain productivity during a recession while also helping to prepare for market difficulties expected in the coming year.
Why do manufacturing companies use temporary staffing agencies?
The manufacturing industry is currently facing a skills gap, with many jobs remaining unfilled. Many companies have partnered with manufacturing temp agencies to address this issue.
Manufacturing staffing agencies provide these companies with a steady stream of job candidates who possess the necessary skills to do the job. These agencies play a vital role in maintaining production numbers for manufacturing companies. This is because there is a direct correlation between skilled labor, production, and a company’s bottom line.
Manufacturing companies rely on temporary staffing agencies to locate talented candidates and ensure that they possess the required skills for the job. According to a recent Gartner report, only 16% of new hires possess the necessary skills for the job. However, this can be improved by allowing a manufacturing temp agency to prescreen candidates to ensure their fit within the organization. This prescreening process ensures that companies have a pool of qualified candidates, saving HR teams time and money during the hiring process.
How do manufacturing staffing agencies function?
- Temporary staffing services companies provide manufacturing companies with employees to fill long- and short-term positions.
- When a manufacturing company partners with a staffing agency, the agency uses its extensive network of job candidates to find the best fit for the company.
- The agency screens the candidates to ensure they match the job requirements and company culture.
- A good manufacturing temp agency acts as a liaison between the employer and candidate, representing both parties.
- If the candidate is hired, the agency handles the onboarding process, payroll, benefits, and if needed, termination.
- Temporary staffing services in manufacturing are beneficial during economic downturns and market volatility as it allows for flexibility to staff up or down without committing to full-time hires.
Benefits of Temporary Staffing Services in a Recession
During the last recession, in 2008, one-quarter of the American workforce was employed by temporary staffing services companies, showing the value of partnering with an expert staffing agency.
- Lowered hiring costs: Temp workers receive benefits not through your company but through the staffing agency, saving money on HR labor, vacation and sick days, overtime pay, and health insurance.
- Access to on-demand talent pools: Staffing agencies spend most days networking with a pipeline of talented individuals, creating an active, robust database of candidates ready to get to work
- Try it before you buy it: Train temp workers to use the equipment and machines that drive your business, learn the culture and the ropes of the job, and get to know them before making a permanent hire
- Hire faster when the economy improves: Having temporary workers already trained and familiar with your company allows for faster hiring when the job market improves
- Reduce risk: During a recession, when every penny counts, a manufacturing staffing company can free up your cash flow and lessen risk
At iGrowStaff, we specialize in managing payroll for companies in the US, Canada and South Asia providing centralization and coordination of global payroll cycles to help businesses streamline their payroll processes and ensure compliance. Contact us today if you have questions.
