1. Temp employment will continue booming in 2011
Employers, hung over from 2008, are still running from perm commitment.Â Temp employment however which accounted from more that 30% of new jobs since the trough will continue to shine.Â My index of temp startup activity is up more than 50% since last year.Â Â
2. BRIC countries will dominate staffing growth
Donâ€™t look for the G8 countries to lead the pack in staffing growth in 2011. It will be the BRICs â€“ Brazil, Russia, India and China. But not just them - Pakistan, Indonesia and Mexico will be the big sleepers in 2011.
Brazil could blow this prediction out of the water â€“ they just elected a marxist, ex-guerrilla as president.
The price of mobile technology is plummeting and its applications improving drastically. The mobile phone will move beyond its past place as a convenient CRM tool. In 2011, job orders, candidate presentations, video interviews and more will move to mobile devices.
This isnâ€™t just a high-end staffing trend. I recently met up with one of our staffing clients, the owner of a large labor staffing company. Labor staffing doesnâ€™t evoke thought about mobile technology but he sees it as a lynch pin for his growth in 2011, and we are developing a series of mobile based features for them.
4. Backoffice outsourcing will reach the inflection point
Back office staffing processes have gotten too complex for individual staffing companies to take on. The national companies still trying to do it are dying from the overhead of carrying staff that can no longer execute efficiently.
Payroll compliance, time clock integration, electronic invoicing, and paperless time cards and applications are no longer nice-to-haves. They are fundamental to the staffing business and are unaffordable when done internally.
5. California passes its first ever pro-employer law
If youâ€™ve been in staffing or employment on a national basis, you know what ABC stands for. California makes it very unpleasant for employers. At TempWorks weâ€™ve been inundated with staffing software orders over the last year but California â€“ with the exception of Silicon Valley a few places down south â€“ has been as dry as ever.
One client shared with me that with each industrial staffing employee he takes on he figures his downside risk is more than $500k whereas his optimistic return in profit is $250. In other words, why do business at all in California?
Iâ€™m guessing this will be the year that California, now in the hands of its mystical new governor, Jerry Brown, will finally decide that maybe employers are worth having.