Why Businesses are Moving to Temporary-Labor Sourcing

Tim Chatfield
January 5, 2021
min read

In November, Fed Chairman Jerome Powell remarked to the world that “We’re not going back to the same economy - we’re recovering, but to a different economy.”  

Businesses across all industries the world over are rethinking their 2021 fiscal strategy in preparation for this new economy.  At Jitjatjo, we’re already seeing exciting shifts in the hospitality, healthcare, and education sectors, particularly as it relates to temporary-labor demand. This universal adjustment has propelled companies to reshape their approaches to temporary-labor at rates far faster than expected and this change to the temporary labor market is a vital element in the global economic rebound.

Problems equal opportunity for savvy leaders, and labor transformation is the biggest opportunity in 2021 and beyond.  The temporary-labor model is the next-gen operating model and this prolonged economic uncertainty has called companies to build more flexibility into their talent strategies.  

Just look at Amazon, which has recently surpassed 1M employees and growing.  Their operations experienced severe problems during the onset of COVID, but by flexing its model to hire furloughed restaurant employees, they were able to quickly bounce back and then some.  The need for e-commerce staff is here to stay, and so is the demand for temporary-staff transitioning out of hospitality.

McKinsey released a report this fall exploring the need for companies to review their temp labor strategies in an uncertain financial market, confirming the substantial uptick in temporary labor demand and hospitality industry re-skilling we had already been experiencing in the second half of 2020.  COVID put outdated labor-models in the spotlight causing demand disruption and resulting in millions of laid-off employees.  An on-demand staffing platform, Jitjatjo leverages A.I. and Empathic Intelligence to instantly and accurately provide quality, vetted talent to businesses such as hospitals, restaurants, and universities as well as to some of the largest hospitality organizations in the world, as quickly as within an hour. Quite literally, we were built for this moment. 

Jitjatjo has been helping to solve staffing challenges for over 5 years.  In that time, we have regularly heard from businesses of all sizes with fixed labor models that labor was tight and it was hard to find quality talent. Somewhat paradoxically, pre-COVID, the United States enjoyed a 50-year low unemployment rate while simultaneously experiencing a high staff turnover rate of 74% within the hospitality industry.  Connecting the right people at the right time was a challenge, one especially acute in larger organizations, contributing to a significantly elevated temp-labor spend.  

Jitjatjo has never experienced supply issues, even during nationwide unemployment lows. Further, our turnover rate consistently remains under 10%, far below the hospitality industry average. The key is offering flexibility while maintaining compliance and control - that's what our platform delivers.  Fundamentally, Jitjatjo is an on-demand staffing platform that connects employers with the talent they need to get the job done when it needs to get done.  Because Jitjatjo is transforming the way people work to maximize productivity and empower lifestyle choices, offering human-power through tech-power, we’re able to statistically maximize the likelihood of all parties being a great fit.    

Companies are using this time to review their current talent sourcing strategy and potentially move from a traditional temporary agency model to one that harnesses the above-mentioned marketplaces or a vendor management system.  As it turns out, Network by Jitjatjo is the solution on both fronts.  Businesses use Jitjatjo in two specific  ways: 

  • For on-demand staffing, case by case. This is ideal for small to mid-sized businesses
  • As a white-labeled technology powering their everyday staffing demand.  This is ideal for large corporations

Our novel approach allows enterprises to access separated staff (who are already trained in company culture, products, services, etc.), under a new on-demand cost-model. This view has been presented back to us unsolicited by Management Consultants through independent research, which gives us even more confidence that both Jitjatjo & our clients are ahead of the game in the hospitality industry in this regard.

McKinsey put it well: “Executives who optimize temporary labor by implementing new talent-procurement and management strategies can come out of the pandemic with enhanced flexibility and resilience to respond to future challenges.”  Jitjatjo is here to help. 


Written by
Tim Chatfield

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