A.R. Mazzotta - Connecticut Employment Specialists

How’s business?  The ASA Staffing Index can help you answer this question.

The ASA Staffing Index, developed by the American Staffing Association, provides a current measure of staffing industry employment trends.  Published weekly, the index estimates the weekly changes in the number of people employed in temporary and contract work.

Index numbers are reported just nine days after each work week ends, making it a virtual real-time measure of staffing employment trends.  ASA research shows that staffing employment is a coincident economic indicator and leading employment indicator – especially when the economy is emerging from a recession – making the index especially relevant right now for businesses across the nation.

The ASA Staffing Index also serves as a valuable resource for economists, journalists, analysts, researchers and policy makers who are interested in current trends in staffing employment.  Participants account for more than one-third of industry sales offices.

Two numbers are reported weekly.  The first is the weekly percentage change in staffing employment.  The second is the index itself, which shows staffing employment trends over time.  Both numbers are normally posted on the ASA web site on Tuesday mornings.

This Week’s Staffing Index:

Follow this link to view current ASA Staffing Index data.

Monthly Report – April 2011

Staffing employment in April is 7% higher than in the same month last year, according to the ASA Staffing Index.  The index for April is 92, up one index point from 91 in March, suggesting that U.S. staffing employment has increased 1% over the past month.  Staffing employment is typically lowest during the first few months of each year and grows during the subsequent months.

A.R. Mazzotta Employment Specialists – In-Step with Connecticut Employers’ Changing Needs

A.R. Mazzotta delivers customized recruiting services, temporary staffing and workforce solutions to help companies like yours achieve sustained business success as the economy recovers.  What can we do for you?  Contact A.R. Mazzotta today.

A recent Reuters article by Kristina Cooke shares some good news:

“The pace of temporary job creation after the most recent recession – an average of about 25,000 per month – has been faster than the past two, potentially a good sign for a labor market struggling with a jobless rate of 9 percent.”

This Reuters graphic of BLS data illustrates why experts look to the staffing industry for signs of recovery:

If you compare temporary employment to overall employment, you can see how the number of temporary workers declines faster heading into a recession and rises more quickly in a recovery.

In fact, research from the American Staffing Association indicates that temporary help employment is a strong coincident economic indicator when the economy is emerging from a recession.  Overall, temporary hiring rose steadily through 2010, with U.S. employers adding more than 300,000 temporary jobs (about a quarter of the 1.17 million in overall job growth last year).  Translation?  The sustained upturn in temporary staffing is good news for the economy.

But Cooke goes on to temper this enthusiasm, noting that a faster pace of temporary hiring hasn’t yet translated into significant full-time job creation – a critical piece of the recovery puzzle.  Experts such as Peter Capelli, professor at the University of Pennsylvania’s Wharton School, say that because employers are now using temporary assignments to try out potential employees on the job, the increase in temporary hiring could be masking direct hiring.

A.R. Mazzotta Employment Specialists – Driving Connecticut’s Recovery

As businesses throughout Connecticut begin to staff-up again, A.R. Mazzotta is driving the recovery.  We deliver customized staffing solutions to help companies like yours achieve sustained business success in a volatile economy.  What can we do for you?  Contact A.R. Mazzotta today.

As our economy struggles to gain steam once again, businesses are forced to make tough choices regarding their workforces.  Skyrocketing employment costs such as insurance, overtime, payroll taxes, healthcare and other benefits, coupled with the uncertainty of just how long a recovery will take, are placing enormous pressure on employers to run lean.

Here are just a few of the ways temporary staffing can help your business contain expenses, manage uncertainty and maintain productivity during a slow economic recovery:

Contain employment costs.  Healthcare, workers’ compensation, unemployment insurance, Social Security and overtime costs continue to rise each year.  Temporary (temporary) staff can help you mitigate these costs:

• As the temporary employee’s employer of record, the staffing service pays benefits, unemployment, taxes and other personnel expenses.  You pay only for productive hours worked.
• When you use temporary staff to handle special projects and peak production periods, you don’t have to increase your fixed payroll costs – or direct headcount.
• You can eliminate overtime, and the employee burnout it causes, by bringing in temporary staff to handle extra hours when business picks up.

Manage uncertainty.  If your business faces an unknown future in this economy, consider using temporary staff to keep your workforce flexible.  You can bring in additional labor and expertise when you need it, while avoiding the expense and problems caused by overstaffing.

Increase focus.  When times are tough, every employee must be put to his or her highest and best use.  Temporary staff can be used to handle low-priority, mundane, or non-core business functions, so that your regular staff can focus on their most important priorities.

Minimize layoffs.  Although some businesses may be hiring again, many others continue to face the threat of layoffs.  Planned staffing services can help you smooth the fluctuations in your workload that typify the onset of a recovery – providing the staff you need to handle sudden surges in demand, while reducing the need for layoffs once things slow down again.

Maintain productivity.  Staffing services carefully pre-screen and test their workers to ensure they have the skills and attributes necessary to perform for your company.  In certain cases, the staffing firm will even train and orient new temporary staff for you, to help you maintain productivity.  And because staffing services handle recruiting, screening, interviewing, testing and reference-checking for you, their services help you be even more productive.

Through good economic times and bad, A.R. Mazzotta provides the services your business needs to thrive.  Contact us today to learn more about our staffing services for Connecticut employers.

Admittedly, it may be a little early to light a Yule log. 

But if you’re in the customer service, administrative/clerical, hospitality, shipping/delivery, inventory or technology/finance industries, you’re probably headed for a busy – if not your busiest – time of year.  If you’re going to require extra help this holiday season, it’s definitely not too early to plan for your staffing needs.

Here are just a few reasons why:

• Prevent rash hiring decisions.  If you wait until the last minute to recruit and hire, you may find yourself “up against a wall” when business suddenly surges.  Waiting until your needs are urgent may force you to make hasty hiring decisions.
• Get a jump on your competitors.  Many companies will wait until next month to gear-up.  Why not start your efforts now and reach the most qualified candidates before other seasonal employers get them?
• Avoid being overwhelmed.  This year’s seasonal job market will be flooded with applicants.  With so many job seekers competing for positions, the sheer volume of résumés and applications may bog you down.  Give yourself as much time as possible to find the best candidates by starting the search process early.

If just reading about seasonal hiring makes your stomach churn, relax – you don’t have to do it alone.  Staffing firms specialize in helping companies like yours effectively manage the highs and lows of business cycles.  Plan your workforce needs now with your staffing partner to:

• Get the flexibility you need.  Seasonal temporaries can handle surges in demand without impacting fixed expenses.
• Say “goodbye” to post-holiday layoffs.  Since the staffing service is the seasonal employees’ employer of record, you can avoid the hassle and expense of letting workers go once things slow down.
• Access the talent you need, right when you need it.  Planning your workforce needs now gives your staffing firm time to locate the most qualified staff for you, especially when you require a large number of workers – so they’re available right when you need them.
• Shorten learning curves.  Your staffing provider will recruit seasonal workers with the specific skills and experience you require.  The provider can also, at your request, develop customized orientation materials to help reduce training costs and get workers up-to-speed more quickly.
• Eliminate additional administrative and legal burdens.  By using temporary employees, you avoid the social security, payroll and other tax and legal burdens associated with seasonal employees.  Freedom from these hassles will give you more time to focus on other important priorities.
• Cut back on overtime.  Temporary employees help you minimize the additional cost and burnout overtime causes.

Plan Your Workforce Needs with A.R. Mazzotta

If your business has frequent or predictable surges in demand, a planned staffing option may be right for you.  Planned staffing is the strategic use of temporaries to accommodate workloads known to vary in seasons or other cycles.

First, an A.R. Mazzotta staffing expert will work with you to examine year-round fluctuations in workload and identify peak demand periods.  Next, we will create a customized staffing plan for your business that: provides temporary employees to handle your busiest times; reduces or eliminates your need to lay off employees during slow periods; frees you to focus on the most critical parts of your job.

Remember, the early bird gets the worm – it’s never too early to discuss your staffing needs with A.R. Mazzotta.

You’ve just won a three-month contract with a major new client – congratulations!  Now, you need to figure out how to get the extra work done. 

Should you pay your current employees overtime, or bring in temporary help?  Consider the following sample cost analysis.  It is based on an annual salary of $40,000 ($19.23/hr., based on a 40 hr. work week), vs. time-and-one-half overtime, for one employee:

Cost Analysis

Although this is just a sample exercise for illustration purposes, it clearly demonstrates the economic rationale for using temporary employees.  When you need additional productive hours on a temporary basis, staffing services provide a hassle-free way to lower costs, reduce burnout and improve the productivity of your direct staff.

A.R. Mazzotta Employment Specialists – Connecticut’s Staffing Economics Experts

Need help assessing the cost of a staffing strategy?  Contact A.R. Mazzotta today.  Our experts will work with you to determine the most productive and cost-effective ways to get your work done.

Cost Analysis Assumptions

* Temporary staffing rates vary by market, but the relationship (ratio) between pay rates remains the same.

** Fringe benefits include:  holiday pay, sick leave, vacation pay, personal days, insurance, F.I.C.A., S.U.I., F.U.T.A., worker’s compensation, etc., based on a national average of 31%.

*** Based on U.S. Chamber of Commerce national average statistic of 12%, which includes firms that pay no benefits.  For small firms with moderate benefits programs, this cost is typically 40-45% of payroll, and for larger firms with extensive benefits programs, the cost can be up to 100% or more of payroll.

According to a worldwide survey of senior managers, years of staff cutbacks have undermined trust in the workplace.

The Economist Intelligence Unit’s new report, titled “Companies at the Crossroads,” recommends that to restore that trust, companies must put their employees first  – or risk experiencing deep talent erosion and sustained underperformance as the global economy recovers.

Here are some key statistics from the December 2009 report:

• 29% of business executives surveyed said employee engagement is low – and that they expect to lose key people as talent demand grows.
• 41% of respondents cite a shortage of talent in their organization.
• 44% of executives surveyed said they find it increasingly difficult to recruit talented employees.
• 50% of respondents plan to ramp up recruitment in 2010, with only 18% freezing headcounts.

The survey found that while executives understand the need to focus on their talent, greater action is needed to develop sound talent management strategies for the future.  Low trust among mid-level employees, coupled with low graduate recruitment and an ongoing demand for senior executive talent, is creating a “perfect storm” for businesses:  the most talented employees may be headed out the door, with fresh talent not yet recruited.

Bottom line, these trends can have a serious impact on your business as the economy recovers.  A.R. Mazzotta Employment Specialists is prepared to help.  We proactively recruit to ensure you always have immediate access to the skilled, talented and reliable individuals you need – especially when that talent becomes hard to find.  Visit our website to find out what we can do for you.