Staffing Industry FAQs

How big is the industry?
The staffing industry generated some $77 billion in revenue in 2000: $64 billion from temporary help services and $13 billion in permanent placement services.

How many companies use staffing services?
90% of U.S. companies use temporary help services.

How much has the temp industry grown?
Average daily employment for temporary help services has increased an average of 10% per year over the last 7 years.

What accounts for the growth of the industry?
America's work force is changing as more and more people are looking for the flexibility that temporary/contract work provides. Companies are tapping into the flexible labor market to keep fully staffed during busy times.

Do staffing firms charge employees a fee for temporary assignments?
No.

How long do people hold temporary jobs?
While specific jobs may last from a few hours to several years, the best estimates for the average tenure of temporary and contract employees range from 3 to 5 months.

What types of assignments do staffing companies offer?
Jobs range from administrative assistants to CEO and are available in virtually all occupations.

What are the trends in the kinds of temp/contract jobs being assigned?
The fastest growth is occurring in professional and technical occupations.

How many staffing companies are there in the U.S.?
There are about 7,000 firms that have been in business a year or more. Those companies operate approximately 21,400 offices. The American Staffing Association represents 1,700 companies that operate 14,500 offices and account for 85% of industry sales.

What kind of pay and benefits do temporary employees receive?
To attract the most qualified employees, staffing services offer highly competitive wages and benefits. The average assigned employee earns more than $10 per hour. Some temporary employees earn more than their permanent counterparts. Most staffing companies offer health insurance as well as vacation and holiday pay, and many offer retirement plans. Virtually any assigned employee who wants benefits can find a staffing firm that offers them.

What kinds of services do staffing companies provide?
Staffing services include temporary help, direct hire placement, temporary-to-hire placement, long-term and contract help, managed services (often called "outsourcing"), training, human resources consulting, and professional employer organization (PEO) arrangements in which a staffing firm assumes responsibility for payroll, benefits, and other human resource functions.

Sources: American Staffing Association, Staffing Industry Report, The Conference Board, The Omnicomp

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