Often, the future is approached with hesitation and fear, especially in the staffing industry. The unknown ways the market may shift can leave both businesses and staffing agencies vulnerable if not prepared.
Keeping ahead of the trends can be the difference between a successful agency and a failing agency in five years’ time. Below, we predict how the contract staffing industry is expected to change in the foreseeable future. How will these changes impact your business?
The temp staffing industry in Ontario has maintained continuous growth over the past few years. In 2018, it is expected to continue to grow by three percent. The majority of businesses still consider profitability to be their main priority, so the prospect of saving 30 percent when hiring temp workers over employees is extremely tempting. Because they require no employment insurance, CPP, benefits, or vacation time, independent contractors are significantly more appealing for companies looking to stretch their dollar.
An increase in the demand for temp staff will require staffing agencies to continue to develop their candidate pools to accommodate this increased need.
The temp staffing industry often gets a bad rap. Whether it’s that temp staffing firms take a cut of temps’ pay cheques or all temps are unskilled, we’ve heard it all. We, however, know this simply isn’t true, and it’s time for the rest of the world to know it as well.
With the continued growth of the staffing industry, more people are becoming aware of the benefits of temporary recruiting and how it can benefit both Canadian workers and businesses.
Increasing Opportunities for Qualified Candidates
As the baby boomer generation reaches the age of retirement, there will be a significant gap in the workforce. Many empty positions will need to be filled. While technology is making more and more positions redundant, there are many jobs that can never be replaced by technology, leaving great opportunities wide open for qualified candidates.
This means staffing agencies will need to potentially alter their hiring processes to appeal more to the millennial demographic, compared to the previous hiring practices of the older generations, in order to attract top-quality candidates.
In the future, it is predicted that we will see a decrease of temp staffing positions in the private sector and service industry, and an increase in the governmental, healthcare, education, and construction industries. This is where temporary staffing agencies’ niche markets may be affected and could prompt the restructuring of your agency if you’re focused on an industry that is facing decreasing demand.
Continued Importance of On-Demand Placements
In today’s technological age, we want everything instantly. With just the touch of a few buttons, you can order food, catch a taxi, or pay a bill instantly. The same need is transcending the staffing industry.
When companies want to hire employees, they want them now. This means that future temporary staffing positions will need to be filled quickly—the sooner the better. As such, staffing agencies need to find a way to maximize their efficiency and speed up their hiring processes now in order to stay up to speed with the requests of their clients.
Flexibility, Flexibility, Flexibility
It’s so important, we had to say it three times. With all the other changes coming to the temp staffing industry, your agency needs to be extremely flexible to accommodate any and all situations.
A client wants a qualified candidate by the end of the month? Flexibility.
You’re introduced to a new industry you’ve never recruited in before? Flexibility.
It’s all about flexibility. This means expanding out of your comfort zone and trying new procedures in order to meet clients’ needs.