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The Power of a Flexible Workforce - Why it Matters More Than Ever
April, 2025 – Stacey Lane – CEO, President Staffmark Group
Here’s one thing I know, American businessman Oscar Munoz got it right when he said, “uncertainty always creates doubt, and doubt creates fear”. I’ve felt and heard these sentiments among many of my fellow business leaders, peers, and even from our valued customers of late – and there is little surprise as to why.
There is great uncertainty and volatility in 2025’s economic outlook. Sharp drops in consumer confidence, ongoing trade disputes, a 2.2% lowered U.S. GDP growth projection for 2025, and long-term inflation expectations rising to 3.3% in early 2025 – the highest since June 2008 – are among the many reasons.
It’s complicated right? Here’s what’s bringing a ray of hope and stability for more and more business leaders today – the ability to remain nimble, agile, and competitive in uncertain times through a flexible workforce model.
Given that, on average, human capital makes up 70% of a company’s operating costs and is 100% behind a company’s performance, the ability to flex your workforce up or down quickly to match demand while maintaining a variable cost structure and productivity levels is a game changer.
Rapidly Upscale:
There is little evidence that labor shortages will persist. As of January, there were 7.7 million job openings – an increase from 7.5 million in December 2024. And in 2024, 70% of U.S. employers reported difficulties in finding suitable employees. Temporary or contingent staffing provides immediate access to pre-vetted talent – cutting hiring times dramatically so you can upscale quicker and more cost effectively.
Scale Down with Less Downside:
Having too many full-time employees on board means layoffs become a necessary evil. Maintaining a flexible workforce model allows you to scale down to preserve financial solvency without the negative impact of layoffs – both financial due to unemployment liability, as well as morale to full-time staff.
Control Costs & Reduce Risk:
Temporary staffing allows businesses to scale labor costs to match real-time needs, avoiding expensive overstaffing during slow periods and the challenge of vying for critical talent quickly to staff back up after massive cuts, as we saw post-COVID. With a variable workforce, companies can take advantage of market opportunities without committing to long-term/fixed overhead.
Access Critical Skills:
Demographic trends and labor shortages will persist beyond a single economic cycle. The number of high school graduates is expected to peak this year, after which a steady decline is anticipated – dropping by roughly 10.3% by 2041, during a time when retirements are accelerating. This combined with the rise of AI, automation, and digital transformation makes access to on-demand, specialized talent pools increasingly valuable.
Better Manage Wage Inflation:
Wage inflation has become a significant challenge for many employers and is increasing the cost of all employment models. The same wage pressures impacting temporary labor are simultaneously affecting direct employment costs, increasing fixed overhead significantly. Contingent workforce solutions provide organizations with strategic cost management options to mitigate the broader financial impact of wage inflation vs. locking into escalating costs by committing exclusively to permanent hires.
Expand Beyond SOW Projects:
Some employers today choose Statement of Work (SOW) arrangements to manage projects, attracted by the defined deliverables and clear budgeting structure. However, relying exclusively on SOW projects can have hidden downsides worth considering. While fixed scopes provide clarity upfront, it also limits flexibility when project needs inevitably change – causing delays, added costs, or cumbersome renegotiations.
Hire Smarter Without the Investment:
Given modern job seeker expectations, speed, automation, and convenience become more critical in competing for top talent. Investing in leading AI-powered staffing solutions can be costly and complex. The right staffing partner is investing in the latest AI and automations to provide a faster, better experience for job seekers – which means you don’t have to keep up with the incredibly fast pace at which tech solutions are changing.
At Staffmark Group, we believe staffing isn’t about filling jobs — it’s about building the adaptable, high-performance workforce your business needs to thrive. When you choose Staffmark Group, you’re choosing a partner who understands the challenges you face today — and helps you prepare for tomorrow.
For media inquiries, please contact:
Amy Carter
Senior Director of Corporate Communications
Phone: 501.235.1221
Email: amy.carter@staffmarkgroup.com
