Global loan giant Fannie Mae predicts “a modest recession to begin in the first quarter of 2023.” Forbes predicts a recession in late 2023 or early 2024. Goldman Sachs says we’re going to skate to the edge of a recession, but we may still escape it. The World Bank paints a gloomier picture of a global recession, not just here in the U.S. but around the world.

No matter what you call it, the economy today is unpredictable. Businesses should prepare for the worst and hope for the best. As part of this process, large and small companies must consider their labor strategy in light of an ever-changing economy. How can you shore up your hiring strategies in the midst of a potential recession? The answer rests within forging new relationships with IT temp services in Los Angeles. If you’re trying to get ready for what’s ahead, here’s how an IT staffing company like Prosum can help your business.

What Do Employers Need to Know When Using a Temporary IT Staffing Agency in Los Angeles?

Let’s start with understanding IT temp services and their impact on your business. An IT staffing agency in Los Angeles can help you find tech talent through a contract arrangement. Contract IT temp services allow agencies like Prosum to find you the tech support you need for a temporary assignment. Note these IT temp services can go on for a few days to a few years, but the contractor you hire is not a full-time employee with benefits. Technical staffing solutions firms like Prosum alleviate the risk you would face when trying to staff up IT talent. You completely avoid the normal responsibilities of an employer, including providing insurance or other benefits. In fact, firms like Prosum can offer some of the same benefits your full-time workers receive, however, they handle the cost and risk. This allows more flexibility and lowers costs for your business.

Why Do IT Temp Services Grow in a Recession?

Now that you understand IT temp services, how do these technical staffing companies’ s help grow your business in Los Angeles—even during a recession? The answer is that the need for tech talent isn’t going away. Korn Ferry calls it “the $8.5 trillion talent shortage.” In October 2022, another 10,000 IT jobs opened up signaling that our need for IT staff isn’t going away

As our country has grown increasingly digitized, the demand for these workers hasn’t nearly kept pace with the supply. This will leave millions of dollars on the table in the coming years as companies simply don’t have the experienced IT teams to do the work or to take on the innovation necessary for our continued digital transformation.

Prosum, an IT staffing agency headquartered in El Segundo, fills the gap between the need for talent and access to IT workers. Every day, our recruiting teams focus on filling candidate pipelines with high quality, experienced, IT workers. We engage this workforce to work on your behalf. This contract workforce is considered IT staff augmentation, where we send an experienced labor pool to work on your project. We source, hire, and maintain this workforce, but they work on your projects without you taking on the risk of a full-time employee. How could this model help your business during the recession that surely is ahead?

4 Reasons To Use an IT Staffing Agency in Los Angeles During a Recession

When Prosum went through the 2008 recession, which was the last one we experienced, our clients shared four key benefits of using an IT staffing agency in Los Angeles. Prosum helped these companies:

1. Cut hiring costs at a time when every penny counted
2. Increased hiring agility by using IT temp services
3. Hired the technical staff they need at the right time
4. Decreased their risk of hiring during a recession

#1 Access Skilled IT Talent With a Staffing Agency

There have been hundreds of reports and articles on the IT staffing shortage. Even during the most recent layoffs, the reality is that there are thousands more tech jobs than we can possibly fill. It’s a huge problem that HR teams cite as their number one hiring challenge today. Hiring ranks as a top stressor over issues of compliance and training that HR teams also normally handle. That isn’t going away next year and its exactly why so many companies forge partnerships with IT temp services firms.

The reality is that IT staffing agencies never stop looking for talent. Prosum teams spend all day carefully building new relationships with highly qualified technical talent. Its a long, tedious process because building these networks requires a full-on effort to source and maintain these candidates. It’s something that a stretched HR team, pulled in so many different directions, just doesn’t have time for.

Companies that partner with technical staffing solutions companies gain immediate access to these networks, many of which have been built over years of diligent effort on the part of Prosum agency recruiters. This is a huge advantage to any company trying to find talent in any economy.

#2 IT Staffing Agencies Reduce Hiring Costs

Hiring IT talent today is incredibly competitive. If you’re hiring a full-time W2 employee, the comp package inevitably includes benefits and perks in addition to a high salary, bonuses, and more. There is simply no way to find and retain top talent without offering a robust package these days. Companies are paying top dollar for IT top guns now.

However, maintaining IT initiatives during an economic downturn is very challenging because the likelihood of a slashed hiring budget is high. We know IT teams are tasked with doing more with fewer resources, and in 2023 this is unlikely to change. But if your IT staff is running thin on talent and low on the dollars to hire them, that puts more pressure on your existing workforce. So, you need help, but your budget for hiring is cut. What can you do?

The answer is IT temp services. IT staffing agencies in Los Angeles can provide IT augmentation without the need for you to hire them yourself. Prosum has the talent you need, and we can provide it on a temporary basis. You save on paying for the benefits of these skilled workers while you still get the help you need. When the need is gone, the expense of this service, which is less than hiring a full-time employee, simply goes away.

#3 Increase Flexibility with IT Temp Services in Los Angeles

How can you handle hiring when the entire economy is teetering on recession, and you don’t know what’s next?

The answer is IT temp services. It is the best way for a company to scale up or down as needed even during a recession without creating the need for a layoff. Technical staffing services firms offer employees increased flexibility at a time when every dollar matters.

This type of IT staff augmentation is considered an operating expense and not a capital cost. Typically, an IT department receives an annual hiring budget that falls under capital costs. Hiring temp IT staffers means that this instead falls under a different area of the budget, which is another way to add agility to your tech needs next year.

#4 Decrease Risk of a Full-Time Hire

IT temp services alleviate the risk of hiring in a down economy. We realize every new hire brings risk. One of the ways an IT staffing firm can help is to provide pre-selection and expert interviewing of potential candidates. Prosum sends our clients only the best pre-vetted candidates that meet our rigorous hiring standards. The extra set of eyes and best practices help ensure you hire right every time.

But if you’re using Prosum as an IT staffing agency in Los Angeles, we take away your risk by providing contract tech workers to fill your hiring needs. We handle most of the laborious HR tasks associated with employees, from sourcing, interviewing, and hiring to payroll, benefits, and more. For employers, this is the easiest and least risky way of hiring in a difficult economy.

Recession-Proof Your Business With an IT Staffing Agency in Los Angeles

Prosum offers technical staffing solutions for companies like yours. Our benefits are heightened in a down economy where companies must remain agile in their hiring practices to stay ahead of market downturns. If you need IT talent, Prosum offers a pipeline of qualified candidates able and willing to take on short- or long-term contract engagements. Contact our IT staffing agency in Los Angeles today to find out how we can help your business anytime—but especially during a recession or other times of market volatility.