The Rise of Freelance Jobs and Their Impact on Labor

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It wasn’t that long ago that your career use to be tied to one company until retirement, but today’s workforce has vastly changed. It’s not uncommon to switch companies or jobs every few years, an occurrence that doesn’t phase HR recruiters when they see a resume in their inbox.

Labor patterns are changing even more with the prominence of freelancers flooding the job market with their killer skills.

A freelancer is defined as an independent contractor retained for a short period of time to complete a specific task. Freelancers are often hired at scale and their expertise spans many industries — from creatives, to tech, administrative support and clerical, or specialized consultants.

According to the Bureau of Labor and Statistics, freelancers currently make up 10% of the workforce, with a prediction that between 2012 and 2022, self-employment will increase another 3.6%.

But, do freelancers really have much influence on the labor market overall? Our answer? Absolutely!

Below are four ways freelancers have changed recruiting and staffing:

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US companies increased talent acquisition spending to nearly $4,000 in cost per hire

The Staffing Industry Analysts reports that companies are now on average spending $4,000 per hire in 2014. The study completed by consulting company Deloitte states that as labor markets are tightening due to improved economic conditions and increased demand. The report indicates that companies are trying to lower hiring cost buy using professional networking sites as well as there own company websites for hiring purposes over more expensive mediums like job boards and recruiters.

Driven by increased competition for talent and a shortage of critical skills, US companies increased talent acquisition spending 7% on average year over year in 2014 to nearly $4,000 in cost per hire, according to new research from Bersin by Deloitte.

Spending focused on professional networks at the expense of agencies, according to the research. Allocations to professional networking sites tripled to account for 12% of recruiting budgets on average in 2014, up from 4% in 2011. In contrast, agencies and third-party recruiters claimed 18% of the recruiting budget in 2014, down from 38% in 2011, as organizations switched their investments to a variety of less costly channels, including professional networks.

Spending on talent acquisition up 7% to nearly $4,000 per hire, study says.

6% Growth In Temp Staffing, Trending Towards $121 Billion

The U.S. temporary staffing industry will grow 6% in 2015 and another 5% in 2016 to reach a record industry size of $121.0 billion in 2016, according to the “U.S. Staffing Industry Forecast: April 2015 Update” released by Staffing Industry Analysts.

The US place and search industry will expand 9% in 2015 and increase 7% in 2016.

– See more at: http://www.staffingindustry.com/site/Research-Publications/Daily-News/Temporary-staffing-industry-to-grow-6-in-US-SIA-forecast-says-33731#sthash.eF604L6D.dpuf

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VC Fund Has $60M To Invest In HR Tech Startups

Techchrunch reports that a strategic corporate venture capital fund set up by  global HR services giant, Randstad, is looking to invest in startups working on matching workers to jobs.

With so much digital data online there are more ways than ever for companies to track down potential candidates, which means ample opportunities for startups to think creatively about better ways to match positions and talent. While the rise of mobile devices offers the potential for far more effective employee outreach. All these are areas of interest for the Randstad Innovation Fund.

Randstad’s VC Fund Has $60M To Invest In HR Tech Startups Showing Early Traction | TechCrunch.

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Hiring is going high tech

Techcrunch takes a look at the growing trend of VC backed HR and recruiting companies disrupting the industry.

Recruiting can be a nightmare for companies of all stages and sizes – it’s a time suck for current employees, often a shot in the dark in terms of candidate search and interview logistics, and if done haphazardly it can really screw up a company.

It’s an issue that has spawned a new class of startups tackling a variety of recruiting obstacles. With over $400 million raised in 120 venture rounds this year, investors are finally directing their attention and cash toward one of the largest pain points for any company – hiring.

http://techcrunch.com/2014/11/21/investors-are-backing-a-recruiting-revolution/