Under the effects of the Great Resignation, recruitment agencies are busier than ever – given the increasing unemployment rate that hasn’t shown any signs of slowing down. Amidst the current situation, recruiters should continually stay updated on the most recent staffing trends – in order to adapt their business plans to customers’ constantly shifting demands.
According to McKinsey’s research into the nature and characteristics of the Great Attrition, 40% of the workforce said that they are at least somewhat likely to leave their jobs in the upcoming 3-6 months. These results were constant across most industries and across the five nations studied (Australia, Canada, Singapore, the United Kingdom, and the United States).
The impact of the Great Resignation on the world of work
Since its first breakout at the beginning of 2021, the so-called Great Resignation has left businesses scrambling to find replacements for key personnel, and the ripple effects are still being felt today.
The event has caused several changes in the world of work, some of which may be permanent. For example, many businesses are now offering more flexible working arrangements to retain staff.
There has also been a rise in the use of temporary or contract workers, as companies seek to avoid the high costs associated with traditional employment.
Challenges faced by recruitment agencies in the current climate
The number of workers resigning from their current jobs is continuing to climb, making it more and more difficult for recruitment agencies to fill open positions. In addition, they are also facing greater competition from other alternative solutions, such as online job boards and social media sites.
While the challenges are significant, there are also opportunities for those who can adapt to the changing landscape. For example, many agencies are now using online tools to reach a wider audience of potential candidates. In addition, some have decided to focus only on a few certain sectors or industries – to retain a long-lasting competitive advantage.
Top 7 staffing trends for recruitment agencies in the Great Resignation
Below are 7 staffing trends that recruiters should be aware of to stay ahead of the curve – and remain resilient against the Great Resignation’s effects.
1. An increase in the number of contract and temporary workers
These days, companies are relying on contract and temporary workers to fill gaps in their workforce – thanks to the variety of advantages they offer. First, these workers can be employed and let go as easily; hence, it is less costly to recruit them than to do the same with traditional applicants. In addition, they are often more willing to work odd hours or in difficult conditions.
2. The rise of the gig economy
This is a staffing trend that has been for long – and is expected to last for the years to come. As more workers value the flexibility that freelancing provides, there is a rising need for staffing firms that can offer temporary or project-based candidates. Those who can provide access to a pool of talented freelancers will be well-positioned to leverage this opportunity.
3. A shift towards remote work
According to a study conducted by Microsoft, 51% of hybrid workers said that they had been thinking about making a switch to remote work. As businesses become more open to the idea of hiring remote workers – for reasons such as cost reduction and better employee satisfaction, agencies should be prepared to heed this staffing trend and adapt their strategies accordingly.
4. A move towards data-driven recruiting
Data analytics provides invaluable insights that can be used to improve business operations and make better decisions. Given the fierce competition in the recruitment industry, more than ever – staffing agencies need a strategy to efficiently identify and reach out to the best candidates. This involves the application of recruitment analytics – not only to improve the effectiveness of candidate screening, but also to track and improve every team member’s performance.
5. A growing demand for global talent
Workers with international working experience are a highly valuable asset – as more businesses are expanding their reach to the global market. For this reason, recruiting agencies with a global pool of talent should possess a distinct advantage in the current climate.
6. A move towards specialization
The Great Resignation has prompted organizations to realize the importance of improving their workforce’s expertise. This, in turn, has resulted in a growing need for staffing firms with a specialization in particular sectors (e.g: healthcare, IT) – who, generally, have a better understanding of clients’ needs and the specific skills required for their specialized industry.
7. The rise of Artificial Intelligence
Years ago, people may say “Nah” upon hearing the term “AI in recruitment”. But things have changed significantly since then. Given the increasing pressure to source candidates quickly, precisely and efficiently, more and more staffing agencies are turning to AI and software solutions.
Recruitment agency software provides an amazing solution to speeding up the screening process. Thanks to features such as keyword search and filter, recruiters now find it much more convenient to review resumes and identify candidates that match the desired skillsets. Not to mention, AI can be used to automate administrative tasks, such as sending out confirmation emails or scheduling follow-up interviews.
How to stand out from the competition
Aside from being aware of the staffing trends mentioned above, recruiting agencies are also required to be proactive in their approach to recruiting – in order to stay ahead of the curve.
First, they should invest resources in building up their pool of potential candidates by networking and conducting targeted searches.
Second, they should spend time creating attractive and informative job postings that accurately reflect the needs of their clients.
Finally, social media and other online platforms should always be part of their sourcing strategy – so as to ensure that they may always reach out to a wider pool of candidates.
Conclusion
As the workforce continues to change, it is obvious that recruitment companies must always be ready for change. By staying updated on the most recent staffing trends, recruiters can be sure that they are always well-positioned to leverage every new opportunity – and meet the needs of their clients during the Great Resignation.
Referral: If you are in the Lapeer MI area, and looking for a recruitment agency don’t hesitate and contact Staffaro.
