If the economy picks up this year as predicted, staffing agencies likely will be called upon to fill previously downsized positions, industry experts say.
"If things do turn around and there’s a hiring blitz, companies might start to push the panic button and try to fill positions as quickly as possible," said Jeff McKeown, owner of Racine Express Personnel Services.
Staffing agencies felt the impact of the most recent economic downturn and, like other industries, saw a rise in consolidation and closing of companies, McKeown said. He noted the local example of Randstad, which recently closed its Racine and Kenosha offices and moved those services to its Milwaukee locations, he said.
McKeown also expects Internet recruiting to remain popular, and believes companies increasingly will outsource human resources functions.
Jessica Ollenburg, president of HRS, Inc., in Greenfield, said requests for human resource services have increased more than 300% since January 2001.
"The unfortunate downsizing in the HR community itself is impacting the staffing industry in that now there is a greater need for outsourcing," Ollenburg said.
That especially will be true if the economy turns around and companies began hiring more workers — and Ollenburg expects that to be the case. For some companies with downsized human resources staffs, outsourcing may be the best option for them at this time, she said.
Human resource consultants also could be beneficial to companies dealing with internal movement due to jobs that have been opened up due to downsizing, Ollenburg said.
"In addition to hiring, we’re expecting to see internal job changes and advancement opportunities as well," Ollenburg said. "Especially in those cases, the need for an objective third party to deal with the hiring is tremendous."
The increasing demand for human resources consultants likely will not cause permanent human resource departments to become obsolete, however, Ollenburg said. Consultants now are being seen more as partners with companies, rather than replacements of the human resources function. Consultants come in and help companies deal with staffing changes and program development, but then permanent human resource staffs typically are hired to implement new programs or hiring projects, Ollenburg said.
Within the employment industry as a whole, Ollenburg also sees a movement among agencies to better define their services as temporary staffing or human resource consulting. While temporary staffing agencies provide temporary workers, human resource consultants help employers select permanent, full-time employees. Agencies must make clear what services they provide so that employers are best able to select employees to meet their needs, she said.
"There is a valid need for both temporary and permanent workers, and agencies need to define what it is they offer," Ollenburg said. "The lines were blurring in the past, but already we’re seeing agencies doing a better job of defining their niche."
Jan. 18, 2002 Small Business Times, Milwaukee
