7 Unique Challenges Facing Staffing Agencies in 2016

free online recruitment softwareStaffing agencies and recruiters are faced with a variety of challenges on a daily basis. While some are easy to overcome, many continue to weigh these professionals down.

With 2016 well under way, thousands of staffing agencies across the country are doing their best to find top talent for their clients, regardless of the challenges. Below we’ll discuss these so you can plan ahead before having to deal with them. Did you know that Recruiteze was the best, free online recruitment software on the market? At the end of the post we’ll discuss how our amazing products can help you minimize many your hiring challenges!

Challenges Exist

Every challenge must be faced head on. Every challenge must be overcome as quickly as possible, as this improves the chance of success both for the agency and their client.

Below are seven unique challenges facing staffing agencies in 2016:

  1. Increased Competition

This comes in many forms, including other staffing agencies as well as companies in the same industry as the client.

Here is the best way of looking at this challenge: there is nothing you can do about competition. It would be nice if you were the “only game in town,” but this isn’t the case now and never will be in the future.

Competition is what the job market is all about. It doesn’t matter if you own a staffing agency, work as a recruiter, or are seeking employment, there are always competitors to overcome.

  1. More Talent to Choose From

This is a challenge in some ways, but a benefit in others.

With a larger talent pool, you have a greater chance of finding several top notch candidates for each open position.

Conversely, there is a problem: you will likely receive a greater number of applications for each opening, leading to more administrative work.

This challenge can do one of two things:

  • Hold you back from reaching your goals.
  • Ensure that you find the exact right person for the job.

With more talent than ever before, let this work in your favor. Don’t let too much talent be a bad thing.

  1. Applicant Dishonesty

In a perfect world, every job applicant would be 100 percent honest. They would stick to the facts and only the facts on their resume and application.

But as you know, the world is not perfect. Many people feel that they have to lie in order to get ahead. As a staffing agency, this poses a big challenge.

Here is an excerpt from a CBS MoneyWatch report, quoting Patrick Barnett, a background and legal investigator:

“Some studies have indicated as much as 35 percent of resumes contain some form of deceptive past employment information. There are even websites that have a network of phony companies that will act as a past employer, verifying a job history that never existed. In some cases the applicant will declare they have worked for an employer that went out of business. Many times applicants will claim a degree they have not earned.”

Simply put, there is nothing you can do about applicant dishonesty. This has been a problem for many years, and will continue into the future. As competition among applicants increases, so will the number of people who lie in an attempt to move to the “front of the line.’

  1. Lack Of Speed

The business world moves faster today than ever before. While some staffing agencies have kept up with the times, allowing for fast results, others continue to lag behind.

As you begin your search for the perfect candidate, you need to act in a fast and efficient manner. Neglecting to do so could lead to the person accepting another job, thus leaving you to contact other, less qualified candidates about the position.

Hiring delays can cost the staffing agency, hiring company, and employee a lot of money.

Reducing the time to hire is a challenge facing all staffing agencies. How you deal with this challenge can be the difference between success and failure.

  1. Out Of Date Strategies

Has your recruiting strategy been updated over the years? Or are you still relying on tactics that worked 10 or 15 years ago?

If you neglect to keep up with the latest innovations, as well as technology, it’s possible you could continue to slip behind the competition.

Even if you have a strategy that has generated positive results in the past, it doesn’t mean you should avoid making changes in the future. This is the only way to ensure that you are ahead of the game, giving yourself a competitive advantage.

  1. Cost Of Keeping Up

You understand the challenges of achieving success in today’s world. What you don’t understand is how to spend your resources wisely.

The cost of keeping up with other agencies is greater than ever before. Take the right steps and you will find that each and every dollar you spend is working in your favor. Conversely, if you are in the habit of wasting money, it will work against your agency month in and month out.

Fortunately, new technology is available to help staffing agencies achieve greater results without the large outlay of cash.

  1. Shortage Of Help

Some staffing agencies have all the help they need. They have a solid team in place, with everybody on the same page. And then there are those who are short-staffed, wondering how to pick up the slack to ensure high quality service.

A shortage of help is a big problem, as it can hold back the current staff from performing at their peak.

There is only one way to deal with this challenge: hire more help. By doing this, you can relieve some of the stress on your current staff, which means better service for your clients.

Other Challenges To Watch Out For

While the seven challenges above are among the most common, there are others that staffing agencies should be aware of this year. These include but are not necessarily limited to:

  • Understanding new trends in hiring, such as the use of social media.
  • The globalization of the workforce.
  • Increase in the number of companies hiring contractors, as opposed to full-time employees.

Maybe you are familiar with these challenges. Maybe you even have a system in place for protecting against them.

If nothing else, you should realize that these challenges could pose a problem at some point this year. Rather than wait for trouble to show up, you can be proactive in implementing a solution.

Technology Can Help

Go back in time 50 years and the staffing and recruiting industries were nothing like what you see today.

For example, staffing agencies were communicating with workers primarily via phone, fax, and snail mail. Can you imagine!

Fast forward to 2016, and all of this has changed. Now, staffing agencies are using the internet, including email and online recruitment software, to provide hiring companies and workers with a higher level of service.

Here are some details to consider:

  • Hiring companies can now communicate directly with staffing agencies in real time, helping to speed up the process.
  • Interested workers have the ability to search for job openings via the internet, rather than traditional means such as the newspaper classified section.
  • Staffing agencies can collect resumes online, avoiding the need for paper with free online recruitment software.
  • Agencies have the ability to create a custom careers page, perfect for attracting new talent.
  • Reporting and analytics, which can be useful both for the agency and sharing with the hiring company.

What Now?

online recruitment softwareAs a staffing agency professional, all these challenges may have your head spinning.

If you don’t know what to do next, or if you are concerned about providing the highest level of service, then there are a few steps you can take. Take a look at these below:

  • Make a list of challenges that you are currently facing.
  • Make a list of challenges that could bog down your business in the future.
  • Devise a strategy for attacking these challenges.
  • Speak with your entire staff about challenges, strategies, and how to deal with anything that comes up.
  • Use technology to overcome challenges, improve efficiency, and save money.

Staffing agencies that change with the times are able to remain at the top of the industry, year in and year out. Those that fight this, those who don’t understand the many challenges, can be left behind.

If you want to be an industry leader, make sure you are familiar with the challenges you will face in 2016. Even better, implement a strategy for overcoming these challenges without delay.

Every staffing agency faces its share of problems. You are not alone. If you want 2016 to be one for the ages (in a good way), now is the time to better understand the challenges you will face and the best solutions to each problem.

Now that 2016 is over, we have compiled the Top 14 Staffing Challenges for 2017

Here is another article which discusses today’s Staffing Challenges that keeps HR up at night.

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