There are many myths about the staffing industry, but among one of the stranger ones is the notion that staffing agencies are already on their way out. Since there’s been a growth in the range of different technological innovations in recent years, like natural language processing and chatbots, there’s a general assumption that in the near future staffing agencies will experience larger and larger gaps between their peak sales seasons. This line of thought is labelled a myth for a reason.
There’s simply too high a demand for temp staffing and skilled temp workers for computers to be able to accurately and efficiently place candidates on their own. There’s also the fact that the key to staffing success is building meaningful human relationships. According to a recent study by the American Staffing Association, 77 percent of job hunters in the past five years prefer human interaction during their searches.
All the above facts point towards a concept you should take advantage of as a new staffing agency owner: offering temp staffing to retain more clients. Unsure of how providing temp workers will help you prevent slow sales periods? Read on then.
Offers More Employee Flexibility
No matter if your staffing agency’s niche is information technology (IT), office and admin, or accounting and finance, there are many companies seeking more varied hiring solutions. Since the gig economy became the new normal, there has been more of a need for temp staffing than ever before.
Permanent positions are less flexible for your potential clients. During vacation seasons, there’s much less manpower if companies lack different types of employees.
Temp workers also offer companies greater flexibility regarding specific tasks or projects that will only last for specific blocks of time. By helping clients achieve employee flexibility throughout the year, your agency retains clients longer.
Capture Millennial and New Grad Talent Market
Flexible work doesn’t just benefit your clients though; it also benefits your candidates, particularly those who are part of a younger demographic. Millennials prefer flexible jobs because they can pick and choose how much they can supplement their income, as well as improve their work-life balance. When your staffing agency offers temp workers, you stand a higher chance of landing millennial and new grad talent.
Clients (especially in IT) are on the lookout for technically savvy millennial and new grad candidates. Offering a steady stream of millennial and new grad talent to clients boosts retention. These specially trained candidates are part of the highly coveted passive candidate market. Clients will continue to return to your business to access this desirable market.
Passive candidates are those candidates that, whether industry veterans or adept newcomers, are already employed and are not actively looking for positions. Many of these passive candidates are usually difficult to come by because many aren’t interested or even thinking about changing their positions. But there are passive candidates who would be interested in challenging themselves with new projects, seeking a different work culture, or perhaps wanting different benefits. It’s a difficult market for companies to reach, so your staffing firm can offer real value here.
Solving the Ongoing Skills Shortage
Being able to offer more diverse types of candidates for your clients boosts your retention because at the end of the day Canada is still experiencing a skills shortage. The upside of the gig economy, as we discussed throughout this blog, is the ability to have flexible work solutions on both the hiring side and the candidate side. But the downside of the gig economy is that there’s no certainty for clients that they’ll have access to the talent they need year-round.
Your staffing agency can mitigate the problem of Canada’s ongoing skills shortage by providing temp workers. Since there’s no guarantee the shortage will let up anytime soon, you’ll likely have more long-term clients in your database, which will help you grow your business.