In the U.S., roughly 10,000 people reach retirement age every day. And though not everyone who turns 62 or 65 retires right away, losing veteran workers is a challenge, even for big companies.
When you have large numbers that are leaving and a pipeline that is not entirely as wide as the exit pipeline, you will have temporary gaps.
It's a big crisis within the industry where they're trying to recruit young talent and keep young talent, but loosing veteran workers to retirement.
The veteran employees already know how to speak the language, know how an insurance company operates, know how the businesses operate, know how they make money, know how projects proceed, and know all the processes.
Brain drain is only one reason Contract Employee Staffing continues to be a necessary and critical part of the overall staffing picture for companies.
The growth in this area continues even now that direct hiring has started to pick up.
One of the biggest changes from what is viewed as traditional in the US is the transition from a direct hire workforce to a blend that incorporates both direct hires and contractors. In the blended workforce model, companies maintain a core of traditional, direct hire employees supported by contractors that can be adjusted to meet business needs. This provides companies with flexibility, cost savings, and reduced liability.
The growth of the Internet and mobile devices has changed employment, allowing employees to work remotely and giving rise to “virtual teams.” In fact, the number of people working from home at least one day a week increased by 80% between 2005 and 2012. These remote workers are the perfect candidates to take on the type of project-based work that is common to contract assignments.