The US economy has experienced significant growth in recent years, but the industries that have driven this expansion are entering a new era. There is also a shift from unskilled labor toward skilled workers. These trends have important consequences for staffing companies and the workers they employ.
While the majority of industry experts agree that staffing wages will increase by more than 2% in 2020, there is still a large amount of confusion surrounding this issue. Accommodating an ever-shrinking supply of qualified workers is going to be one of the main challenges that staffing companies will need to face head-on if they want to compete at a higher level.
The Major Trends experienced by Staffing Companies of the USA in 2020 are –
- Leveraging Technology – Staffing and recruiting is a laborious process—from pre-screening and drug testing to checking referrals, engaging candidates, interviewing them, and negotiating the final offer. The inability to efficiently recruit, screen and qualify onboard candidates can consume staffing revenue. And it’s no wonder that a staggering 36% of employment agencies rank automation as a top challenge—talk about not doing what you know needs to be done.
- Balancing Candidate Satisfaction with Client Experience- Hiring and retaining candidates who are also clients can be a challenge. Up-and-coming talent is more aware of working conditions, self-fulfillment, and purpose. Some staffing companies use automated or expedited hiring practices. This is concerning because it may cause the company to lower its standards for candidates by excluding top talent with unique skills and experience. The company also might not offer competitive benefits or assurances that would attract top talent to its firm. And even if the company does have systems and technology in place to ensure seamless recruiting and hiring, it may or may not be providing maximum value to candidates and clients.
- Addressing the Importance of Carving Out of Niche – When clients and job seekers alike know what to expect from a staffing company, it’s easier for them to make decisions. For instance, if an employment agency does “admin personnel,” it’s hard for clients to drill down and see if those candidates would be the right fit for their law firm. However, if a law firm sees that a staffing company does “admin personnel for law, accounting, and marketing firms,” then they can make a more definitive decision about whether the candidates would be a good fit.
As the service industry becomes more popular, staffing agencies across the country are becoming more important. Whether they’re better connecting people to jobs, aiding in the efficiency of businesses, or dealing with a crisis, these companies play an important role.
The staffing industry is experiencing exponential changes. Despite this, our mission remains the same; providing high-quality service that matches the interests of our clients with the qualifications of potential candidates.
There is a lot of information out there that we can use to make sure our company is making the right decisions. If we take the time to learn how to translate and interpret this information, we can better understand our potential competitors and the market in general, which will help us make smart staffing decisions and grow our business.
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