According to data collected in 2017 by the American Staffing Association, the use of staffing firms by hiring managers has been consistently rising over the past decade or so.
This steady growth led the staffing industry to become a $161 billion dollar industry by last year – with no sign of slowing down for the current fiscal year.
While there are a wide variety of reasons that organizations have become more dependent on staffing firms in recent years, we’re going to take a look at four of the most influential factors in this article.
4 Reason Companies Are Using Staffing Firms More
1. Industry Shortages
Many industries are facing major a major deficit in terms of the number of qualified employees entering the field versus the number of positions that need to be filled.
According to the 2017 North American Staffing & Recruiting Trends Report, 68% of the companies surveyed stated that finding qualified employees is one of their top three challenges; 38% of them said it’s the biggest challenge they face.
That said, many companies simply don’t have the bandwidth to go “mining” for the perfect employee at all times. Since they have a vast number of other things to take care of, these companies are more than happy to partner up with a staffing firm to help them dig up their next “golden” employee.
2. Scaling Problems
The vast majority of companies in existence typically aren’t satisfied with operating under the status quo.
That is, they’re almost always looking to scale up and grow their business.
Obviously, they’ll need to take on a number of more employees when doing so. But, again, with a potential talent shortage looming overhead, finding the right people for the job isn’t exactly easy. When you add in all the other major internal changes that occur while scaling, this hiring process can prove to be a logistical nightmare.
Again, staffing firms can take this major responsibility off of their partner company’s plate. In turn, this allows organizations to focus their efforts on evolving the company’s processes, so that it quickly becomes better equipped to handle the increased workload to come.
3. Fluctuating Needs
For many – if not most – companies, certain times of year tend to be much busier than others. Needless to say, the busier the time of year, the more employees the company will need.
The main problem, as we’ve discussed on our blog many times in the past, is that the process of hiring and onboarding new employees can be rather time-consuming. Of course, time is a hot commodity during a company’s busy time of year; there’s not much “extra” to go around. Not only that, but there’s also the chance that, by the time a company has onboarded new employees, the busy times will have already passed – making their hiring unnecessary in the first place.
That said, staffing firms can help companies find and onboard contractors or temporary workers quickly and efficiently, allowing them to hit the ground running during an organization’s busiest time of year.
4. Keeping In Touch
Going along with the last point, staffing firms typically keep a “rolodex” of qualified professionals at hand at all times, so as to be able to fill any necessary positions quickly and efficiently.
Additionally, by keeping in close contact with the members of their talent pool, staffing firms are able to provide up-to-date information to their partner companies – enabling them to easily find the exact right person for a given position.
Finally, by keeping close tabs on the members of their talent pool, staffing firms also stay current with the availability and expectations of these individuals. As we said, many individuals may only be looking for temporary employment, while others are looking for more long-term positions. Knowing this, staffing firms focus heavily on ensuring the company’s needs and the employee’s needs match to near perfection.
What’s the Panther Professional difference?
Experience, creativity, and flexibility.
Whether you’re looking for professional staffing solutions or your next career opportunity, The Panther Group gives you options. For the past 25 years, we’ve put talented people and leading organizations together. For short-term staff or inspiring leaders, our hands-on approach to staffing ensures consistent results. Contact us today to find the talent you need to grow.