Compared with previous years, staffing companies are now finally encountering more candidates seeking employment opportunities. Hurray! And they are getting hired. According to the US Bureau of Labor Statistics:
· There about 3.5 million more people in the workforce today than June 2022
· Labor participation among 24 -55-year-olds is at a 21 year high.
· Overall labor participation is projected to increase as younger and older workers enter or re-enter the talent force.
Though improved, it’s still a tight recruiting market out there. Employers are finicky in the hiring process leading to increased complexities for staffing companies. In this post, we will focus on solutions to help staffing companies fill more orders.
Sell Baby Sell
Staffers: If you haven’t done so already, you need to switch gears and get into sales mode. This is the main solution. It is not enough to work on the same open job orders from the same clients. There simply won’t be enough candidates to fill those orders.
As staffing companies experience a rise in potential candidates, it becomes important for them to cater to the diverse skill sets and job requirements of these individuals. With a more diverse talent pool, staffing firms must expand their client base and/or vertical. By adding to their client portfolio, staffing companies can place more candidates, thus enhancing their overall effectiveness.
Shorten the Interview Process or Loss the Talent
Over the past few months, job openings have held steady at a very robust 10 million (source: BLS JOLTS Report) in the USA. But the hiring process has slowed. This can be attributed mainly to a couple of reasons.
· Companies have become more cautious about staffing levels.
· They require background checks, multiple rounds of interviews, and skill assessments to evaluate candidates thoroughly.
The prolonged hiring timelines pose significant challenges for staffing companies as it extends the time between candidate sourcing and final placement. A highly qualified candidate eager to start working will most likely take another job elsewhere if the hiring process is too long.
Staffing companies must adapt to these challenges by adopting strategies such as effective communication, candidate nurturing, and streamlining internal processes to mitigate the impact of extended hiring timelines. Don’t be afraid to tell your clients that if the hiring process is too long, the candidate will take another opportunity elsewhere. The “elsewhere” could be with another client that has a quicker hiring process. This allows the staffing company to earn their well-deserved fee while satisfying both the candidate and client.
Optimize Internal Processes
This is the key to overcoming the hurdles associated with extended hiring timelines. Implementing technology-driven solutions, such as applicant tracking systems, can streamline candidate screening, evaluation, and onboarding, leading to a more efficient hiring process. Outsourcing non-revenue producing functions such as payroll, billing, and collections allows staffing companies to focus on sales and recruiting. Having a stable, staffing-focused funding source will really help increase the fill rate for the contract (temp) business.
So there ya have it! For those pursuing a streamlined back-office process and/or staffing focused funding source – please feel free to contact me. I can help.