Recovery or Relapse
Temporary help usage volume has long been regarded as the "crystal ball" with which a post-recession economic recovery can be predicted, and understandably so. During a recession companies reduce staff to minimum levels. When business picks up and they need additional employees many are hesitant to hire out of concern that what appears to be the start of an economic recovery may actually be just a short-term uptick. Companies will bring in temporary employees rather than add to their permanent staff until they are more certain that the recovery will sustain itself for a longer period of time. An increase in temporary help usage across the country indicates that a large number of companies are experiencing an increase in business at the same time. This is one of the first signs of a sustainable recovery.
For the better part of a year now we've been hearing predictions of when the recession will end, or reports that it has already ended and the recovery is underway. It wasn't until recently, however, that these reports coincided with a nationwide increase in temporary help usage. While this should defiantly be heralded as a promising sign, many companies remain "cautiously optimistic". After all, no matter what business you're in the recession isn't over when economic indicators go up, or even when the Federal Reserve Chairman say it's over. The recession is only over when your company feels it.
While most economists agree that the recovery is underway, many are predicting that it will be a "U" shaped rather than a "V" shaped recovery, meaning that no one should expect business to go from stagnant to booming overnight. This recovery could be as much of a rollercoaster ride as the recession itself was.
If your company sees a sudden increase in business you should definitely celebrate, but you may still want to approach any staffing increases cautiously. By utilizing temporary employees from Flex-Staff you can ensure that you have the staff you need to handle the increase without having to make any long-term commitments.
-Steve Kamrowski, CEO Flex-Staff, Inc.