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What Lies Ahead For the Staffing Industry in 2022?

It’s no secret: companies around the globe are having a hard time filling jobs. From fast food workers going on strike over working conditions to older workers retiring earlier than usual, some experts expect that the labor shortage could last for a while. Globally, those talent shortages have hit a 15-year high, meaning that any staffing agency franchise is facing new challenges to fill empty roles.

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How many jobs are going unfilled? By the numbers

Three years ago, about half of employers surveyed by Manpower Group’s Talent Shortage Survey reported having difficulty filling jobs. By the third quarter in 2021, that number had risen to more than two-thirds —69% of employers now report having a hard time finding people to work.

As of the end of September, there were 10.4 million job postings in the United States alone, the U.S. Bureau of Labor Statistics reported in its Job Openings and Labor Turnover Summary earlier this month. At the same time, the quits rate—or the number of people who left their job—reached 4.4 million. According to CNBC, that’s the highest rate since December 2000.

Factors affecting the global labor shortage

We’ve all heard about the labor shortage and open jobs. But what’s causing this trend?

Older people are retiring earlier than usual

According to Business Insider, 60% of missing workers in the U.S. have retired. The article notes that research from the Federal Reserve Bank of Kansas City found that the expected number of retirements during the pandemic was about 1.5 million; in reality, that number was almost double.

People who have been out of work aren’t rushing back

Another explanation for some of the missing labor force is that some households have built up savings and aren’t in a hurry back. Maybe a worker had to get a new job out of necessity after their pre-pandemic job closed down, or maybe they were able to take time off and are being selective about the workplace they return to.

Those working in high-demand industries are asking for more

With quit rates reaching a two-decade high, some employees are asking for more pay as they shoulder more work. There is added pressure for employers to do so in order to retain the workforce they have, especially when considering the added impact that turnover has on staff morale and customer satisfaction.

Safety and reluctance to work in-person

Labor Secretary Marty Walsh told Business Insider last month that the pandemic has brought along a new set of criteria for prospective employees. Working in person can come with a higher risk of illness or the necessity of childcare. The need to work away from home also impacted people’s ability to care for their loved ones; the Census Bureau’s Household Pulse Survey heard that 4.65 million people said they weren’t working because they were caring for someone or were sick themselves with coronavirus symptoms.

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How can you set yourself apart as a staffing agency?

There is serious demand for tech-savvy recruiters. While that’s been true for several years, the remote and hybrid workplace has made it even more so. Video calls, LinkedIn visits, and sophisticated matching algorithms are now crucial pieces of a recruiter’s toolkit as employees look to be approached on their terms. While staffing agency franchises do provide training programs to help recruiters learn the latest technology, the agencies themselves will have to stay at the forefront of new technology to ensure they’re not being left behind.

Agencies must also understand that there has been a power shift in hiring. For years, it was an employer’s market, where recruiters and human resources professionals had their pick of the litter when it came to hiring. Now, candidates wield a great deal of power themselves—that’s especially true in high-demand areas like manufacturing, sales and marketing, information technology, and administrative and office support.

Labor shortages have hit some industries harder than others. That makes a compelling argument for becoming a niche recruiter. If information technology is one of the five most in-demand industries, then it stands to reason that staffing agencies that focus on IT will become sought after.

Understanding the needs of candidates and employers

Candidates around the globe are making it clear that they want improvement in their lives. Most companies are listening. Now you as a recruiter must cater to what employees in those in-demand fields want the most. According to Manpower Group’s survey, that means things like a better work-life balance, which 80% of respondents wanted, and reimagining the idea of the typical 9-5—almost half of the employees surveyed believe it’s the end of the 9-5 altogether.

Many companies are already working to accommodate these desires to attract candidates. The survey heard that many employers are reinventing their workplaces to be more flexible. According to the results, employers are incorporating:

Flexible start and end times (36% of respondents)

A hybrid work model (31% of respondents)

Flexible or condensed hours (29% of respondents)

Forward-thinking employers are going to have an easier time recruiting and retaining candidates, who are less likely to make compromises or settle in a hyper-competitive recruiting environment.

The Golden Age of recruiting?

While a recruiter’s job is not an easy one, the demand from employers who need to fill jobs is unquestioned. That makes it a great time to get involved in the staffing agency, which has already nearly doubled in the past decade.

Interested in getting involved in a $151 billion industry that’s growing and more in-demand than ever? Please visit our franchise website for more info.

How to hire for the future

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In the commercial shipping industry, staffing shortages have been on the rise for years – and the concern is only going to grow. This situation arose partly from an organic shift in the marketplace towards purchases online, accelerated tenfold by the Covid-19 pandemic.

Gaps in the labor market have arisen for more factors than just one, however. Data from the US Bureau of Labor Statistics show that more than 4.3 million people “voluntarily quit,” jobs in December 2021, just missing the record high from the previous month. 

On top of the consumer market, Millenials and Gen Z have previously been reluctant to join the warehouse workforce. Although in contrast to their slightly elder generation, the latter has shown more readiness to pick up warehouse work.

Statistics tell that Gen Z is upwards of 10% more likely to seek out transport work than their former. That being said, the market is also expecting a further decline in the workforce in the coming years. As of April 2022, transportation, warehousing, and utilities have seen the largest increases in job openings.

With so many moving parts, how can businesses stay on top of hiring in the current market? The aid of a liaison that can provide easy access to an available workforce becomes necessary. 

 

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Benefits of Working Alongside Franchise Agencies

In the summer of 2022, many industries, in general, are struggling to find the workers necessary to keep up with demand. Employment rates are still lower than they were pre-pandemic.

“As the U.S. economy continues adding back jobs after the pandemic recession, the staffing industry is playing a key role in getting people back to work,” said Richard Wahlquist, the president and CEO of ASA.

The global staffing industry revenue is $445bn, and in the US alone it amounts to over $130bn. There are a lot of reasons why staffing is one of the fastest-growing industries in B2B services. Candidates hired out of staffing agencies are typically more skilled, and ready to fill in for positions requiring years of experience.

When corporations and businesses face a prominent staffing gap, a common gut reaction can be cross-training existing employees to take on work for the missing labor. This is usually a costly mistake, however, leading to problems down the line – sometimes even resulting in more employees quitting!

The logical approach, when faced with seasonal staffing shortages, isn’t to stretch what you’re already working with, but to breathe new life into your workforce. This process is made immensely easier when partnering alongside a trusted and highly useful staffing agency.

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Consider the Temporary and Contracted Workforce

When dealing with summer staffing shortages, it’s key to look for candidates with more flexibility in their schedules. Having the right intention and motivation when hiring during these times will truly help in the long run.

Staffing agencies can help businesses connect with workers who are:

Recently graduated students beginning or working on their career paths

      • New graduates are always on the lookout for part-time work, and while they may move on to different work opportunities in the future, they make excellent employees due to a readiness to learn and improve.

Parents and caregivers seeking part-time work

      • During the pandemic, many parents found themselves opting for working from home to help their children with remote schooling. However, now more parents and caregivers are opting for new temp jobs to better align with changing family schedules.

Recently graduated students beginning or working on their career paths

      • Skilled individuals swapping careers paths needing work in-between

Employees brought on during such turbulent times can sometimes even outperform their colleagues. The desire to do one's best seems to shine during the temporary employment period, which in some cases leads to permanent and much-needed hires.

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NEXTAFF Can Help Manage Your Needs in the Changing Climate

In the summer of 2022, many industries, in general, are struggling to find the workers necessary to keep up with demand. Employment rates are still lower than they were pre-pandemic.

“As the U.S. economy continues adding back jobs after the pandemic recession, the staffing industry is playing a key role in getting people back to work,” said Richard Wahlquist, the president and CEO of ASA.

The global staffing industry revenue is $445bn, and in the US alone it amounts to over $130bn. There are a lot of reasons why staffing is one of the fastest-growing industries in B2B services. Candidates hired out of staffing agencies are typically more skilled, and ready to fill in for positions requiring years of experience.

When corporations and businesses face a prominent staffing gap, a common gut reaction can be cross-training existing employees to take on work for the missing labor. This is usually a costly mistake, however, leading to problems down the line – sometimes even resulting in more employees quitting!

The logical approach, when faced with seasonal staffing shortages, isn’t to stretch what you’re already working with, but to breathe new life into your workforce. This process is made immensely easier when partnering alongside a trusted and highly useful staffing agency.

 

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