In a recent Adecco survey, only 3 percent said they’d expect to stay at any given job for more than five years. A third (33 percent) expect to stay for three years or less.

Like their expectations of relatively frequent job hopping, recent grads are equally open to relocating. Ninety-four percent said they would be willing to move to a new city for some reason. The top reasons for relocation are higher pay (73 percent), a job offer from their dream company (59 percent) or a job offer in their dream city (51 percent).

For more survey findings, click here to read a press release.

According to Sherri Elliott-Yeary, CEO of Optimance Workforce Strategies and author of Ties to Tattoos: Turning Generational Differences into a Competitive Advantage, staffing firms are redeveloping their service offerings in response to the changed work force, as more companies are open to utilizing temporary workers.

However, it can be difficult for staffing firms to identify top talent and make placements because high-performing candidates are seeking permanent corporate roles and may not be willing to accept contract work.

Learn how your firm can attract and retain top talent and what the recent economic trends mean for the industry.

Are you seeing signs that workers are seeking greater flexibility in their work arrangements?

Yes. As many of the Generation X and millennials are offered jobs, they require and expect life-work balance. Notice I said “life” first. They get it — their work supports their life, not the other way around. Also, many boomers are tired and worn out from giving too much to their employers and are now requiring the flexibility to take care of aging parents and children and find some balance for their own lives as they decide what their “second half” will be like.

One of my new clients, an international construction firm, currently is experiencing 40 percent turnover in the first year of employment with its new college graduates — engineers, etc. — and 25 percent for employees who have worked one to three years. It seems recruiters are winning these candidates over, but then they find there’s a gap once they experience the on-the-job opportunity. They’re asked to move to the location of their project, and they’re not as interested in being away from family and friends.

What other types of flexibility are workers looking for on the part of their employers?

Many new hires require that they be recognized and motivated based on what matters to them and that they be treated as an individual, not just another employee. They’re also asking for assistance in financial planning for their future.

How are employers responding to this?

One of my clients, Nissan, has started a generational diversity team and is asking each generation of its employees what matters to them in order to make them feel included and appreciated. They bring in outside speakers such as myself, have reading clubs, etc.

Do you think the number and types of opportunities for nonpermanent employees is growing?

I agree that contract labor and independent business owners have more opportunity in today’s climate than ever before. Many of the Gen X and millennial generation couldn’t get a job out of college, so they took it upon themselves to create employment in an area that they felt passionate about — IT, PR, social media — especially while they still lived at home with their parents and had support to start their own businesses.

Companies hire independent contractors due to the overall cost savings and so that they won’t have to worry about things like employee turnover, benefits, workers compensation, unemployment, COBRA, etc. And when a project is completed, they can simply separate with no messy legal issues.

Do you think the job market is becoming more competitive?

Recruiters and companies are hiring again, but they’re looking for top talent, not B-level performers, and they’re finally at a place in the economy where they’re taking a good look at the current staff and replacing average performers with top-quality talent. In an effort to be considered by companies that are hiring, it’s critical that candidates have something to offer besides their prior work experience.

For instance, many HR professionals lost their jobs over the past few years. If they want to be considered for a new role at or above their prior title, they need to keep up with new trends and laws, and they need to have a good story to tell the hiring team about why they’re a good fit and what they did while they were off work to help them achieve their goals.

Are companies looking for more of the types of people who can perform multiple functions as opposed to specialists who do a small group of similar, specialized tasks?

Obviously, many companies reduced their staff size in response to the economic downturn. Now, as they slowly start adding staff again, many of them are requiring that new hires have the ability to handle multiple roles. This is why many members of the millennial generation believe in building a lattice framework of talent and not a ladder like boomers did.

Millennials want to learn as much as they can, be part of new projects, learn about new technology and develop new skills, which in turn makes them more valuable to their current employer and future employers.

How can staffing agencies take advantage of these trends?

They need to offer their clients more than just the ability to fill a seat. They need to be a strategic partner with their clients to really understand the specific hiring needs and talent requirements of the company today and next year.

How can staffing agencies better attract and retain creative, multitalented people?

One of the best ways to attract knowledge workers, as the cost of health care is rising, is to offer some type of medical plan and a 401(k) opportunity to attract members of the boomer generation who need health coverage.

What are some other ways staffing agencies can help companies compete in these uncertain times?

One thing they should do is let go of the old ways. The days of hiring exclusively full-time, salaried employees are gone. Instead, staffing firms need to embrace a new business model where contingent resources like temporary employees, contract professionals and freelancers are a fundamental part of their offerings.

What are some strategies companies can use to prepare their work force for growth?

They should identify the most essential positions in their organization and evaluate options for outsourcing or using temporary help for noncore activities. Maintaining a smaller direct staff keeps overhead at a minimum while giving you the flexibility to quickly ramp up operations when business picks up. Another thing they should do is replace low-performing employees with high performers. In a business environment where every employee is critical, an HR consultant or executive can help a company identify and hire top performers to replace underperforming staff members.

What role does training play in today’s economy?

The “new normal” demands an agile and cross-trained workforce. It makes financial sense to outsource this critical need to cross-train direct staff by either supplying support personnel to pick up the slack while employees undergo training or providing access to highly trained specialists who can conduct necessary training.

Community service provides a great venue to grow your network and get your firm’s name out in front of people. The benefits to supporting a great cause are obvious, but the truth is, there are a number of ways community service can help your business too.

See how community service can open doors to grow your temporary staffing business with 4 tips from Javier LaFianza, president and CEO of Hugh O’Brian Youth Leadership, one of the world’s most well-known youth leadership training organizations.

1. Polish your image.

If you’ve bought time for a commercial spot that runs on TV and radio, you’ll get exposure. But it may not do you much good lining up new clients if it annoys more people than it entices to use your business.

On the other hand, think about the message you send when you sponsor a youth baseball team. All the parents sitting in their lawn chairs see your company’s name on the jerseys of the boys and girls out on the field. That’s positive exposure, and it doesn’t have to take any time away from you or your employees.

“I would rather give my business to someone who I see is connected to and involved in the things that I care about,” LaFianza says. “If you’re actually there in front of people and involved and you develop that personal relationship with them, they’re much more likely to help you build your business.”

2. Energize your team.

You ask a lot of your employees, and they work hard to make sure your clients are getting good people to fill their needs. But asking them to go full speed all the time at work can lead to burnout.

If you give them a chance to support a cause that is close to their heart, perhaps in the form of a paid day off, it can recharge their batteries and brighten their spirits. It also shows you and your company to be a caring part of the community.

“Some companies see it as a wonderful team-building opportunity to get everybody out of their office and out from behind their desk for a day,” LaFianza says. “Encourage them to give back in areas where they are passionate.”

3. Provide an opportunity.

Internships are a great way to provide a service to your community while also filling a need in your business. Perhaps you have some general office work that you’d rather not burden your busy staff with but nonetheless needs to be done.

Seek out a talented high school or college student to help you out over the summer or during a vacation. It may even lead to a more permanent position.

“If somebody says, ‘My son worked for the John Smith staffing firm and had a great experience,’ they are more likely to recommend you to their friends and family as a place to do business,” LaFianza says.

4. Build your network.

Community service gives you a chance to help others and meet people who you can do business with in a positive setting away from the day-to-day grind of running your staffing firm.

“Before you know it, you’ve expanded your business and professional network in a way that wasn’t available to you before, and you’ve done it on a very personal level,” LaFianza says.

Buchalter & Nemer Attorney Bob Zadek agrees, saying temp factoring’s flexibility makes it an ideal choice for any type of staffing firm.

“A factoring company generally is more tolerant and understanding of a staffing company’s needs,” he says. “Also, if you have a great relationship with your factor, there is some room for negotiation. So if you need more money than your contract specifies, you might be able to get it from a factor whereas you wouldn’t get that from a bank.

“Factoring companies are competitive and want to keep your business, so they’ll generally consider requests like these more than a bank would. Factoring is really such an easy process, and the benefits are many, especially for staffing companies.”

Moran recently outlined this approach in a Smart Business article. His tips can benefit staffing firm owners and operators at all stages of their careers and can be particularly useful for those starting a staffing agency.

• Get to know people. “The first question you always ask is, ‘Just tell me a little bit about yourself,’” Moran says in the article.
• Pick your battles. As Moran met with the employees, he sensed they were looking for leaders who could do a better job of making decisions and engaging the staff. So he implemented a “bottoms-up budgeting process” to make it happen.
• Build a foundation. Moran build relationships with his coworkers as he got to know them. He also kept the lines of communication open and shared his thoughts and goals with them.

For more on Moran’s leadership approach, click here to read the full article.

Bruce Friedman, director of Assurance Services at SS&G, recommends asking peers within the staffing industry for referrals. “Ask around and see if you know somebody who has used the factor and had good experiences with them,” he advises.

By asking about potential factors before meeting with them, firms will be able to narrow their prospect list and save valuable time.

Friedman also recommends making sure the potential factor has a stable source of cash. While firms are probably not able to look at the temp factoring company’s finances, they can inquire as to how their company can be assured it will be able to receive its funds, Friedman says.

Stuart Gelb, Founder and President of The Liquidity Source, an independent financial advisory and consulting firm, suggests staffing firms select a factor that specializes in staffing firms.

“Factors who only specialize in staffing firms will better understand how your business operates and what its unique needs are,” he says. However, even if a staffing firm has a great factoring company or is getting a great deal, it is wise to review options annually.

“Banks get aggressive at times for all kinds of reasons,” he says. “If you find a better rate, you can go back to your factor and say, ‘We have a great relationship, but at these numbers, I’m thinking about leaving.’ Most often, they’ll beat the price to keep you on as a client.”

Recourse factoring is the most common form of factoring, especially in the staffing industry, and is the type of factoring TemPay provides. It means the staffing firm assumes the risk and losses for unpaid invoices.

Non-recourse factoring, on the other hand, means the factor assumes the risk of bad debt and is out money for an uncollectable bill. This is uncommon, and if a factor does offer it, it usually comes with a fee.

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“In a traditional banking situation, you’re using your receivables as collateral but retain control of them,” says Bruce Friedman, director of assurance services at SS&G, a national accounting and business consulting firm. He explains that in some factoring situations, the factor, not the firm, controls the temp agency accounts receivable.

Friedman cautions tax implications differ depending on who owns the accounts receivable. Most staffing companies report their income on a cash basis. If the factor owns the accounts receivable, the factor’s payment should be treated as income for the firm at that time. If the staffing firm owns the accounts receivable, the factor is treated like a line of credit and payment is not considered taxable income. A staffing firm should always consult a tax advisor to make sure it is reporting this information correctly, Friedman advises.

One such way technology can help your staffing firm is in your hiring process, according to a recent Smart Business interview with Jeremy Wilcomb, operations manager at The Daniel Group, an executive search and contract staffing firm.

Video resume technology is one of the newest technologies staffing firms are using because it enables them to get a feel for candidates who might be located some distance away, Wilcomb says. The technology allows you to hear how a potential hire would answer questions and visually experience how they present themselves, as opposed to just seeing them on paper and hearing them on the phone.

Another way technology can help your business is through management software like Tempay Complete Solutions Software. This software helps staffing firms create job orders, enable administrative control over all offices, create customer quotes rapidly and precisely and more. It is the same software TemPay uses to manage staffing service payroll and temp staffing factoring.

For more ways technology can help your staffing firm, read the full Smart Business article by clicking here.