As the world continues to grapple with impacts of the novel coronavirus, one question remains in the foreground of nearly every nation across the globe: is a recession inevitable? The coronavirus is an ever-evolving situation, and its long-lasting impacts are still unknown. However, economies around the world are feeling the effects, and a global recession seems more and more probable.
Is a Global Recession Inevitable?
As social distancing continues to emerge as a means of controlling the spread of the coronavirus, more businesses are beginning to shutter. Emotions run high for small business owners, especially, as these unknown economic times have forced many to put their livelihoods, and the paychecks of their employees, on hold. Large corporations are furloughing workers for an indefinite period, leaving many out of a job. Perhaps some government assistance can help stave off any drastic impacts, but we’re still left wondering about the trajectory of a recession.
Slowly, in China, domestic commerce is starting to resume, giving hope to other countries that they, too, will eventually return to some form of normalcy. But when the time comes, many people will be looking for work while permanent positions may be in short supply. Too many unemployed job seekers matched with too few opportunities only adds to a struggling economy. One thing that businesses across the country, whether big or small, can count on is contract staffing.
Contract Staffing During a Pandemic
Contract staffing is already helping during this time of economic uncertainty. As industries like retail and travel suffer heavy blows, some enterprises are using contract staffing to fill an overwhelming need for a growing workforce. Grocery stores and warehouses, for example, are seeing enormous demands for short-term laborers. Contract staffing is an excellent solution, as those looking for immediate work can start quickly without slowing the employer down with administrative paperwork.
The coronavirus pandemic has created a unique economic situation. Grocery enterprises need more employees to help conquer a higher demand for their goods. Plus, the companies need to have a large pool of temporary workers in case anyone falls ill. With contract staffing, companies can promptly hire workers and get them on the floor while staffing firms take care of the rest. Foxhire, for example, can coordinate all the little administrative tasks that can slow down the hiring process, such as background checks, timesheets, W-2 forms, etc. They can also support the financial and legal aspects of hiring new staff.
Benefits of Contract Staffing During a Recession
Contract staffing works similarly during an economic recession. While many businesses won’t immediately have the funds to replenish a long-term, permanent workforce, they will look for temporary contract staffing as an alternative. Simultaneously, with so many people looking for employment, many more will consider short-term contract work as they get back on their feet.
And the usual benefits of contract staffing are heightened during a recession, as employers have less workforce to deal with the hiring process. The staffing firm acts as a human resources department with assistance in processing payments, dealing with insurance benefits, and coordinating contracts, to name a few. Additionally, staffing firms can assist with the offboarding process if needed.
When a recession hits, many businesses and their employees are going to struggle. The use of staffing firms is a solution that allows for gradual business growth without significant expenses or heightened risk. It’s mutually beneficial, as both the business and the worker have temporary contracts supported by an outside source.
Even without a looming pandemic, recessions come and go. Whether big or small, economic downturns leave us all feeling worried. So although we must practice patience now, as we wait to see what our global economy will look like in the next few months, we know there are tools, like contract staffing, to help us manage any negative impacts.