In today's competitive staffing market, agencies across the country face unique challenges in attracting and retaining top talent, securing new clients, and driving sales. In 2024, staffing agencies continue to grapple with the persistent challenge of talent shortages. 

In many sectors, there is a talent shortage rather than a job shortage. There are more job openings than qualified candidates available to fill them. This is particularly true in industries that require specialized skills, such as technology, healthcare, and engineering.

 Yet, according to the World Economic Forum, there is also the shift in the job market to consider. “The number of unfilled jobs, shown in the Job Openings and Labor Turnover Survey (JOLTS), fell to its lowest since May 2021. It meant there were 1.07 open positions for every unemployed person in July.”

This is due to a combination of factors, including economic uncertainty, increased automation, and a potential slowdown in hiring. The labor market is being studied closely after a series of unemployment rate increases, flame recession fears.

"The labor market is still in pretty good shape, but it has cooled dramatically over the last year and a half," Bill Adams, chief economist at Comerica Bank, told Reuters. "Most Americans who want jobs have them, but there are fewer opportunities or alternatives for workers who are laid off or simply prefer something different." So, while job openings are declining the talent shortage also continues and therefore the mismatch between job demand and candidate availability makes the current state of the staffing and recruiting industry more difficult. 

It’s important to understand what a skill mismatch is and how this affects staffing agencies and companies hiring right now. A skill mismatch is where there is a large difference between the skills employees have and the skills that are actually needed to successfully perform well in a position. 

“According to the 2024 ManpowerGroup Talent Shortage survey, 75% of employers report difficulties in filling roles, a number that’s declined ever so slightly since 2023, when it hit a 17-year high (over twice what it was a decade ago).”

Employers don’t always hire the right employees with the correct skills and this can be very costly - to the tune of $15,000 for a poor hire and about $30K when an above average employee leaves because they are not happy with their role. And that was seven years ago when Career Builder shared that 74% of HR Managers admitted to placing the wrong person in a role they filled. Anyone in hiring completely understands this and it continues to happen, daily. Hiring is an imperfect process and one that is not straightforward or guaranteed. 

A complete staffing ATS can help agencies overcome this challenge by providing tools to efficiently source, attract, and retain top talent. With features like advanced candidate search, streamlined onboarding processes, and effective communication tools, a staffing software empowers agencies to build strong relationships with candidates to help meet the growing demand for skilled workers. 

Communication is key and is an effective screening tool while moving through the interviewing, screening, testing, offer and hiring steps. Speaking to job candidates over the phone, communicating via texting and through e-mail provides insight as to their professionalism, verbal, written and time management skills. It’s paramount to placing the right person in the correct role. 

To remain competitive and meet the needs of their clients, staffing agencies must adopt innovative strategies to attract and retain top talent. COATS Staffing Software offers a comprehensive solution to address these concerns and help your agency thrive.

Addressing 2024's Staffing Challenges:

• Talent Shortages: With the ongoing skills gap and increased demand for specialized workers, attracting and retaining top talent is a priority. A robust candidate database and streamlined onboarding processes make it easier to source and hire qualified candidates quickly.
• Remote Work and Hybrid Models: The rise of remote work and hybrid models has created new challenges for staffing agencies. A platform that supports these arrangements, allowing you to manage remote teams effectively and ensure compliance with relevant regulations.
• Economic Uncertainty: Economic fluctuations can impact hiring trends and client demand. A flexible platform will enable you to adapt to changing market conditions and optimize your operations.

Growing Sales and Improving Your Business:

• Enhanced Client Experience: By providing a seamless experience for clients, from job posting to candidate placement,  you build stronger relationships and increase client satisfaction.
• Improved Candidate Experience: A positive candidate experience is essential for attracting top talent. A user-friendly platform and efficient communication tools will help you provide a superior experience for job seekers.
• Data-Driven Decision Making: Analytics and reporting features provide valuable insights into your agency's performance. This data can help you identify trends, optimize your strategies, and make data-driven decisions to drive growth.

Specific Examples of How A robust ATS software can help:

Streamline Candidate Sourcing

Imagine you're a staffing agency specializing in placing customer service representatives in a call center. Your client is seeking a bilingual customer service representative with experience in handling technical support inquiries.

Using advanced search capabilities, you can:

1. Filter by Language: Search for candidates who are fluent in both English and Spanish.
2. Specify Skills: Filter for candidates with experience in "technical support," "customer service," and "troubleshooting."
3. Define Experience Level: Set criteria for the desired level of experience, such as "2+ years of experience."
4. Review Candidate Profiles: Quickly review candidate profiles to assess their qualifications and match them with the client's requirements.

Automate Onboarding Processes 

Imagine you've just placed a candidate in a new role and you can:

1. Send Electronic Onboarding Documents: Automatically send essential onboarding documents, such as employment contracts, W-4 forms, and I-9s, directly to the candidate.
2. Collect Electronic Signatures: Allow candidates to electronically sign these documents, eliminating the need for physical paperwork and reducing turnaround time.
3. Track Progress: Monitor the progress of the onboarding process to ensure that all necessary documents are completed on time.
4. Store Documents Securely: Store all onboarding documents electronically in a secure, centralized location for easy access and compliance purposes.

Leverage Communication Tools 

Imagine you're a staffing agency working on a high-priority placement for a client and you can:

1. Create a Centralized Communication Hub: Establish a dedicated communication channel within COATS for each job opening, allowing all stakeholders (client, candidates, and internal staff) to communicate seamlessly.
2. Share Updates and Documents: Share important updates, such as interview schedules, candidate feedback, and offer letters, directly within the platform.
3. Track Communication: Monitor the progress of communication threads to ensure timely responses and efficient follow-up.
4. Integrate with Messaging Platforms: Utilize COATS’ popular integrated messaging platforms like email or SMS to streamline communication and improve response times.

Tracking Performance Metrics 

Imagine you're a staffing agency looking to improve your overall performance, and you can track key performance indicators (KPIs) to identify areas for growth and optimization.

Here are some examples of KPIs you can track using COATS:

• Time-to-Fill: Measure the average time it takes to fill a job opening. This KPI helps you assess the efficiency of your recruitment process.
• Candidate-to-Hire Ratio: Calculate the number of candidates interviewed versus the number of successful placements. This metric indicates your ability to attract and convert qualified candidates.
• Client Satisfaction: Track client satisfaction ratings to gauge the quality of your services and identify areas for improvement.
• Revenue Per Placement: Calculate the average revenue generated per successful placement. This KPI helps you assess the profitability of your agency's operations.
• Employee Turnover: Monitor employee turnover rates to identify any issues with retention and take steps to improve employee satisfaction.

By leveraging a single source management platform for your daily operations such as COATS Staffing Software, your agency can position itself for growth and success. If you’re ready for something different starting in 2025, contact COATS to schedule a demo in the last quarter of 2024. 

Read More by Lynn Conner