The global contract or temporary staffing services market was valued at around USD 361 billion in 2016 and is expected to reach almost USD 504 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on contract or temporary staffing services for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the contract or temporary staffing services market during the forecast period. Some of the top vendors listed in this industry analysis include Adecco, Randstad, Manpower Group, Hays Plc, and Allegis.
In terms of geographical analysis, the Americas were the largest shareholder in the global market with a market share of around 46% in 2016. The major driver in this region is ACA, which has led businesses to adopt services of temporary staffing agencies due to the new insurance requirements.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The need for flexible and dynamic industrial workforce grows in tandem with the greater mobility of the workforce in the industrial sector. This subsequently increases the need for temporary staffing services. Moreover, the growth of the industrial staffing sector enables the employment opportunities for economically backward communities.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Opportunity to develop skills and gain on-the-job experience
Temporary work helps candidates gain exposure to diverse jobs and projects, subsequently help develop new skills. According to an ASA survey, more than 88% of participants felt that the experience of working as a temporary employee made them more employable as they got to sharpen current skills, develop new ones, and gain on-the-job experience. Furthermore, workers choose to work with temporary agencies to obtain permanent jobs, thereby driving market growth.
Need for flexible workforce
The global market for contract or temporary staffing services is driven primarily by the need for flexibility in managing the workforce to remain competitive. Upcoming trends in the supply market, such as greater mobility of workers and the number of people offering their skills as independent contractors, are also expected to propel the demand for temporary workers.
Skill mismatch
Large businesses often have statutory targets that must be met. Therefore, employers cannot leave vacant positions unfilled. These positions are hard to fill because of a lack of capacity or skills in the market. As a result, employers prefer hiring temporary staff for shorter recruitment phases due to their availability, varying from the next month to even within hours.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Contract or Temporary Staffing Services Market – Procurement Market Intelligence 2017’.
