The staffing industry is always changing, and those changes can better serve companies and workers. In 2020, there are some unique trends and challenges for the staffing industry. Gone are the days of staffing traditional office jobs and getting a huge commission.
Now, firms will have to focus on selecting the right candidates for a job. Firms will also need to balance education and skills with pay and benefits. Then, companies will be able to hire workers that they need without breaking the bank.
Staffing Industry Emerging Trends
As the economy changes, so does the staffing industry. When there are more jobs for everyone, there are more jobs for staffing firms to offer. But it’s important to understand some of the other trends happening in the staffing industry.
Growing Importance of Skilled Workers
Since the staffing industry relies on its ability to place workers in good jobs, staffing recruiters need to focus on skills. When someone comes to a firm looking for a job, the recruiters should focus on that candidate’s expertise.
And while job-specific skills matter, so do other skills, like the ability to work with technology. More jobs are incorporating technology into daily work tasks. If a worker can’t use or learn to use the technology presented to them, they won’t be successful.
Then, a staffing firm could lose one or more clients, either the worker or the company that hired the worker. Other soft skills, like communication and organization, are also essential to many positions, so firms should work with clients to find the right person for the job.
The Right Fit for the Employer
Even if a worker has all of the necessary skills for a job, you have other things to consider when placing them. A worker’s happiness and well being are just as vital to their success as their skill set.
On the other hand, the employer should also be happy. So if a worker’s otherwise proper placement makes managers more stressed, it’s not a good choice. Before a firm places any worker with any company, they should consider how the worker will fit on multiple levels.
Firms can screen their clients before placing them in jobs by asking questions. Ask workers what kind of schedule they would prefer and how much stress they can handle. Consider things like pay and commute, which can also affect a worker’s well being.
Challenges Facing Staffing Companies
Depending on the clients, firms may face a few different challenges. Factors like company size and available workers can affect how easy or difficult it is to fill a job.
The 2020 public health crisis, or COVID-19, has caused the economy to struggle. Many companies have had to layoff or furlough workers, and it’s unclear when companies will start hiring again.
Even if companies hire, they may not have the extra capital to pay for a staffing firm. So the staffing industry is going to have to get creative when it comes to finding jobs for workers. Both staffing firms and workers will have to be more flexible in terms of scheduling and pay.
If staffing companies can shift their focus to remote jobs or temporary work, they might be better off. Especially if a firm typically staffs in-person office jobs, they may need to change their focus until the economy recovers and people can go back to those jobs.
Experience vs. Cost
Another thing to consider is how much it will cost for a company to hire an employee. With unemployment benefits up in 2020, many people are earning more than they did on the job. So it might take a bit of convincing for people to look for a job.
Employers will have to offer better pay or excellent benefits to incentivize people to work. While this can also benefit staffing firms, finding employers willing to do this will be challenging.
Then there’s the problem of experienced workers. If a company wants someone with experience, they will have to pay for that experience. That can then increase the cost, and many companies can’t afford a salary and a staffing commission right now. Many staffing firms are having to turn to payroll factoring in order to meet payroll.
Staffing Industry Statistics
When looking at the trends and challenges facing the staffing industry, it’s important to consider some statistics. While these numbers can and will change, understanding where they’re at can help when it comes to predicting the future.
Like many industries, the 2020 health crisis has hit the staffing industry. In 2019, the industry had a market size of 151.8 billion dollars. But after the crisis struck, that number has dropped to 119.4 billion dollars, which is about where it was in 2013.
So it will take a while for the staffing industry to recover from that loss. By diversifying the jobs and companies firms work with, staffing firms can get through this. It may mean shifting to finding temporary jobs as opposed to permanent positions, but it is possible.
The global revenue for the staffing industry sits at 491 billion dollars, and in the US, that number is 144.5 billion. Adecco leads the way with 3.1 percent of the market in the US, and other companies like Randstad and Manpower Group are not far behind.
While there have been some setbacks and challenges, the staffing industry is likely to recover. There will always be a need for staffing, even when there are fewer jobs available.
The staffing industry is an interesting one to learn about, and there are both trends and challenges to consider. As the world recovers from a health and economic crisis, it may take time for firms to return to complete normalcy.
However, the changes can be a good thing as they force staffing firms to adapt. Instead of placing workers in full-time, permanent positions, they may need to focus on part-time, temporary positions.
Staffing firms may also need to target bigger companies or change pricing to reflect what companies can afford. While these changes are dramatic, they can then help workers and employers find the right fit.