Challenges
Talent Shortages
The number one challenge facing the staffing industry is a shortage of available talent. This is due in large part to the status of the job market. Its no secret, when unemployment is low staffing agencies struggle; and with the unemployment rate reaching 50 year lows in the last year, it has been increasingly difficult for staffing agencies to source candidates for their clients. While general labor type positions haven’t been too horribly affected by the talent shortage, specialty positions have been bearing the brunt of the blow. Anyone who has had to staff for a trucking position can probably tell you how difficult it is to find candidates with the right qualifications to fill positions. Between often needing a squeaky clean motor vehicle record, the number of specialty certifications a driver might need to have, the types of commercial driving license needed for the position, and the wages paid for these positions, it can be near impossible in some areas of the country to staff these positions. The trucking industry is a prime example of how difficult staffing could become in the future with a shrinking talent pool and agencies will need to look into innovative new ways to stand out.
Increased Competition
With a shortage of available workers comes an increase in competition between staffing agencies to get as many workers from the talent pool as they can. Proximity also plays into this, as many job seekers have several options when it comes to staffing agencies depending on their location. We are located within two miles of eight other staffing companies ourselves. In this situation it is important to do your best to stand out from your competition. We have many candidates who come in for their interviews after applying for and leaving other staffing companies. We take note of the reasons they leave and try to solve the problems they encountered at other agencies. Your approach to staffing should be centered around your candidates, and solving their most common issues encountered while job searching is an effective way to stand out from the competition.
Employer Expectations
Another large bump in the road for staffing companies can be the expectations of their client companies. Many are looking for top quality candidates but often don’t provide many incentives to lure in that caliber of talent. Employers need to have realistic expectations about how to obtain the best possible workers and there are several things that they often do that hurt their chances of pulling in top talent. These typically include paying low hourly rates, not offering benefits, offering no training or growth opportunities, and not allowing for flexibility. If you were offered a position that paid lower than average, offered no medical or retirement benefits, didn’t have any way for you to progress out our the position, and that didn’t budge on scheduling, would YOU take it? It is difficult to staff for these types of positions, but the best way to get the top candidates is to negotiate the best possible benefits, wages, and growth opportunities. As staffers, we need to fight for our candidates to ensure that our clients are staffed with the best workers they can get.
Trends
Digitization
The meteoric rise of technology and its integration into the staffing industry has revolutionized the hiring process. Gone are the days when candidates had to come into a physical office to apply. Now, most steps in the on-boarding process are done online through web portals. Our application is even completed online and candidates don’t have to come into our office until the time of their interview. However, many agencies have completely leaned into the technical age. They can have a candidate apply on their website, interview over the phone, and complete any testing required for positions online. This has radically increased efficiency across the industry and has cut the length of time it takes to apply and get out to work down to a fraction of what it used to be. Many agencies are looking for more and more ways to streamline the hiring process and those who adopt new technological approaches to on-boarding candidates are likely to be the ones to succeed moving forward into 2020 and beyond.
The Gig Economy
There has been a recent trend in the job market that has been shaking things up and playing to the advantage of staffing agencies: the rise of the Gig Economy. For those who don’t know, the Gig Economy is exemplified by a good portion of the workforce (especially younger members) who are working several temporary or free-lance positions, often times while also working a full-time position. This means that many young workers are looking to work side jobs, or “gigs”, rather than committing to a single position, and this is where staffing companies come into play. The rise of the Gig Economy has created new opportunities for staffing companies as many people are looking to them to find side jobs and part-time work to help them supplement their income. With a large number of young workers entering the job force each year, this trend is poised to grow year on year for the near future and has the capability to change how employers approach the hiring process across the job market.