The staffing industry is poised for a year of exceptional growth. The economy continues to strengthen, and flexible work arrangements appear to be the hiring structure of choice for businesses looking to expand capacity, capitalize on new opportunity, and minimize risk.

So what are the big staffing trends that will impact your sales team in 2011?

1) 20% plus growth for temporary staffing in Q1 2011.
According to The Palmer Report by G. Palmer and Associates, demand for temporary workers is expected to increase 20.3% in the first quarter of 2011.

2) Strong demand for light industrial, healthcare and IT staffing.
Industrial staffing saw a big rebound in 2010, and while the rate of growth is likely to subside, the sector will remain strong as demand for consumer goods rises. Healthcare and IT staffing also saw a rebound and will likely see increases in demand throughout 2011.

3) Hot careers for 2011.
According to CareerBuilder’s 2011 Job Forecast, the following are the top 10 function areas poised for growth:
4) Continued expansion of VMS and pricing pressure.
According to a post on Staffing Industry Analysts Contingent Blog, temporary staffing purchases via VMS continued to grow even through the industry’s downturn in 2009. The implication is that VMS as a percentage of staffing spend is on the rise, which will equate to more pressure on margins even as the industry improves.


What does this mean for your staffing firm?

You’re going to have more opportunity than you’ve seen in years, but employers are going to be cautious about all spending. Don’t expect easy sales. You’re going to face aggressive competition and have to prove the value of your services.

Candidate shortages are likely to reappear for high skill positions. If you’re a firm that specializes in healthcare, technical or other high skill talent, you’re going to need to focus more resources on recruiting.

Margins will continue to be pushed. Despite the increase in demand for staffing, employers are going to be more aggressive than ever on pricing. If you’re not the low priced player in town, be prepared to make a strong argument why your services are worth more.