Staffing agencies are constantly changing according to the new technology, economic conditions, supply of talent, advanced skills and so on. Combatting talent shortages, embracing digital transformation, and getting employers to accelerate pay increases are three of the biggest challenges facing staffing firms in 2020. Staffing firms provide a valuable service because they have employees that can be hired out to businesses for anywhere depending on the business’s needs.
Smart staffing agencies arm themselves with data about the realities of the skills gap that can exist even when unemployment is high. It’s important to have a heart-to-heart about those requirements upfront with a focus on what the client wants to achieve rather than just what’s on their wish list. Of course, sometimes employers have to experience the disappointment of letting “good enough” candidates’ getaway a couple of times before they acknowledge that they need to revisit their expectations.
10 Staffing industry challenges you need to know:
1. Talent shortages:
According to the KPMG survey, In UK Brexit and covid 19 brings severe shortages in more manual professions such as supply chain, retail and agriculture. Companies are struggling to recruit and keep these posts from the UK workforce.
Also, how the changing corporate climate need highly qualified individuals who can adapt to new surroundings, allowing organisations to become agile and flexible in the face of future problems.
2. Increased competition:
The job market is all about competition. It makes no difference if you operate a staffing firm, work as a recruiter, or look for a job. You can accomplish this by understanding the sector and applicants better and being more creative in your recruiting efforts.
Workers are finding new and different experiences. However, staffing firms can coach their client on how salaries have been trended in the past year so that it helps them to understand the best roles for the employees.
The more staffing firms can help the client to assess the environment, the candidate pool, and the roles will be more successful and client will be.
3. The Recruitment Process Is Becoming More Digital:
It is also one of the significant Staffing issues. Staffing firms are often using social media websites like LinkedIn, Online ads to connect with a larger number of clients. Online connection development involves more planning and preparation, allowing staffing agencies to meet with more prospective clients at once. However, it makes communication difficult between the candidates and the recruiter.
4. Updating your Management Systems:
Handling seamless workflow across the organization is a challenge, especially when you have so many apps and software’s that empowers the worker. Setting up and utilizing the right software’s to warrant a seamless workflow is essential to track data and manage overall systems.
5. Finding the match:
The Gig economy had the workplace so flexible that people are specializing in skills they are good at. So, finding the right match to meet your client’s needs monetarily and deliverables is imperative.
The market is full of generalists; specialization is what gets you faster to the right candidates with specific skills. Your specialized niche gives you an edge in sourcing candidates with speed and scope as a staffing agency. Connecting the right gigs with the right jobs is crucial to stand out in your business.
7. Fluctuations in the economy:
Staffing agencies have a list of issues that they are challenged throughout the year. Like, economic slowdown, fluctuating GDP, uncertainty in employment trends, and unforeseen recessions. The right analytics and good financial management are essential to handle uncertainties in business for better sustenance.
8. Experience of the Candidate:
Candidate experience in the hiring process is one of the significant Staffing issues faced by the recruiter and HR professionals. The job market competition increases further as the demand arises.
9. High Turn Over Rate:
According to the Labour Market Statistics, the job market is tightening. With compensation steadily increasing and job openings readily available, employees are leaving their current jobs searching for better opportunities.
The high turnover leaves employers anticipating filling more roles in 2020. Job availability grows faster than people entering the workforce or quitting current jobs. This leads to intense competition in the workplace.
10. Direct Applicant Quality
Every recruiter wants to know what the secret formula is to this recruitment challenge. Attracting great people is critical, but many businesses struggle with it. Poorly optimised job advertisements that do not include relevant keywords are frequently at the root of this issue, as the proper candidates are not discovering the vacancy.
Many job advertisements are also poorly written to convert, making it challenging to transform a view into an actual application.
With the demands at the workplace changing drastically, it is pertinent for staffing agencies to help their clients understand the dynamics of the new economy and help them transit effortlessly without affecting the bottom lines.
Watch this space to learn how fatraven leverages business potential for staffing agencies—using our advanced tools to assist and optimize business potential rather than spending huge efforts working on routine tasks yielding very minimal results for the recruiters.
The right tools to reduce human efforts and leverage efficiency is the new trend and essential need in the coming days.