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The 3 Biggest Problems Facing Staffing Agencies and How to Overcome Them

staffing agencies

Staffing agencies face challenges on a continual basis, but often, trends come and go and new obstacles arise. As technology evolves and the way people look for work changes, here are 3 of the biggest problems facing modern-day recruiters and some suggestions to overcome them. 

Every agency is different, but most people who work in recruitment have a similar view of the main issues facing them. Examples of the most significant challenges include:

1. Talent shortages

According to research undertaken by Bullhorn, 55% of staffing agencies feel that problems associated with a talent shortage are worse in 2019 than they were five years ago. A deficit in skills represents a major issue for recruiters looking to fill senior roles and positions that require specific skills and qualifications. One of the most important considerations for agencies is being able to attract those who do possess the relevant skills. If you’re desperate to pull in the cream of the crop, you don’t want to lose out to competitors. Using inbound talent marketing, you can optimize your chances of being found by talented prospects and being able to convert leads and nurture talent for the future. 

2. Moving with the digital times

Technology is advancing at lightning speed, and it’s not always easy to keep up in the world of staffing and recruitment. While many agencies are keen to embrace new, digital ways of working and introduce automated systems and AI, they don’t always have the resources to do this. There is also the issue of striking the right balance. Recruiting and HR are fields that depend on human interaction and building relationships, so firms are eager not to go too far when trying to move with the digital times. The key to success lies in taking advantage of the benefits of modern technology without sacrificing the human side, and this is where solutions like Akkusearch and sales force automation play a part. 

3. Low rates of unemployment

When rates of unemployment are relatively low, staffing agencies have to go all-out to encourage people to look and apply for jobs. If this scenario sounds familiar, taking steps to grow a talent pool is an excellent idea. Identifying talented individuals through skills testing enables you to access and nurture a network, which makes it easier to match candidates with suitable roles and also increases your chances of existing clients and prospects encouraging others to join your agency. Through techniques like inbound referral management, you can build on positive feedback collected from temporary employees to bring in more talented individuals. 

Identifying suitable candidates and filling positions with the highest caliber individuals will always present challenges. As times change, staffing agencies face different problems, but there are solutions available. In an age where employment rates fluctuate, there’s a shortage of skills and technology is playing an increasingly integral role in recruitment, it’s hugely beneficial to be aware of resulting issues, but also to understand that there are ways of overcoming them and moving forward. 

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