Subadhra Sriram's Blog

Buyers of Contingent Labor Should Expect to Pay More

It’s no longer a buyer’s market.

As the economy improves, the buyer of contingent labor no longer has the upper hand. It was quite a different story during the recession. Buyers had the pick of the crop, margins were down, talent was available and suppliers of contingent labor were hurting.

That has changed. As things improve,  demand for workers especially in IT and healthcare is growing and wages are going up. The difficulty in recruiting talent and increase in wages has resulted in increased costs for staffing firms. So buyers should expect both a tougher negotiation and to pay more for contingent workers. .

In 2011, Staffing Industry Analysts conducted a survey looking into staffing companies’ attitudes, practices and strategies. The results show that staffing suppliers are beefing up their staff; including retaining and developing their internal workers. Items like costs and cash-flows have taken a back seat on the agenda.

Some buyers (no names will be mentioned) are feeling that they are not being catered to the same way they were in the past. The market has changed, and attitudes are different. Staffing firms are unashamedly going after new business as it’s more worthwhile than pandering to clients wanting to keep costs down.

-------

Comments

Add New Comment

Post comment

NOTE: Links will not be clickable.
Security text:*

Recent Blog Posts

IRS Fails Own Audit

Everyone knows how tough it is to be compliant with the maze of independent contractor law now in place.  And if the IRS didn’t already appreciate this complexity, maybe they will now—a recent... Read More

A Staffing Atlas to Guide You

What’s the temp penetration rate in your county? If someone asked you that, you would probably dismiss both the question and the person who asked. But for those in contingent workforce management, it’s... Read More

Rolling Out New Ideas In Staffing

It was a great coming of age. Executive Forum turned 21 and wowed the staffing industry. Talk shows, awards, great sessions, 900 plus people preening in the Red Rock, Las Vegas were just some of the... Read More

Contingent Workers Are the Survival of the Fittest

"What is a contingent worker?"

Five years ago, this was the most common response I received when I said I write on contingent workforce issues. And no, I am not talking about just my friends and... Read More

An Effectual Contingent Worker Onboarding System Is Crucial

What if you had to work in a different office every week? Logging in to an unfamiliar computer, figuring out the dos and don’ts of the software, sitting in a strange cubicle, not knowing where the restroom... Read More

Executive Forum Talk Show

It’s not your usual talk show. But for those in the staffing industry, it promises all the pizazz of an Oprah Winfrey spectacle. At Staffing Industry Report Live during the Executive Forum, our esteemed... Read More

One-Click Shopping for Contingent Workers

Imagine this.  You as a buyer of contingent workers need to fill a position in your group — immediately. You log in to your company’s integrated talent management system (ITMS) and fill the position.... Read More

Get Social Buzz

Behold the power of social media. Google “social media” and you get 3.29 billion hits.  Facebook filed for its IPO last week — the social networking giant hopes to raise as much as $10 billion... Read More

RPO Scores

The fans are cheering. It’s not exactly a touchdown, but there’s cause for cheer:  recruitment process outsourcing has gone global. For years, the RPO buyer has searched for the mythical one-stop... Read More