The workforce continued to evolve in 2022, and will continue to change in 2023. For example, there are now nearly two job openings for every unemployed worker, and a looming recession is on the horizon. Candidates have a strong hand, and lower-wage employers especially continue to experience a job seeker’s market.
To better attract and retain quality talent into the new year, staffing agencies need to find new and creative ways to stand out in the saturated job market. With more than 11,000 United States employment agencies in 2022, staffing firms are fiercely competing for top talent.
Looking to stand out from the crowd, win the competition for talent in 2023, and better serve your clients? Then these five staffing agency tips are for you!
1. Use Modern Technology to Adapt to Modern Employer & Candidate Needs
In today’s modern workforce, everything is digital. Potential clients and employees alike are performing job searches online. Any opportunity to market, hire, or onboard can be made easier with the right technology.
Staffing agencies are responsible for screening, tracking, recruiting, and reporting. Not only are these tasks easier to accomplish with digital tools, but advanced technology also makes certain software programs capable of handling all of them on one platform. This creates a more streamlined process from start to finish.
In today’s post-COVID environment, the job-seeking process has been made more difficult in the face of uncertain circumstances and candidate shortages. However, as a staffing agency, clients expect you to fill their needed positions.
Recruiting and retention aren’t automatically easier for a staffing agency. Still, creating a robust digital mindset will aid in attracting top talent and retention efforts. Gartner predicts that by 2025, over half of spending on technology will be aimed at cloud technologies, noting that “service providers that fail to adapt to the pace of cloud shift face increasing risk of becoming obsolete.”
2. Create a Positive Candidate Recruitment Experience
While incorporating modern technology into the recruiting process can make it smoother, it isn’t enough on its own. Today’s workforce may be permanently changed by the consequences of remote work forced by COVID-19.
Coined as “The Great Resignation,” dissatisfied employees are not scared to leave unfulfilling work environments. As a staffing agency, recruitment efforts must go beyond basic employee perk ideas and benefits and actively cultivate a positive company culture.
Employees who feel satisfied in their roles typically have the resources to perform their jobs and know what to expect through upfront communication. But sadly, only 36% of the current workforce feels actively engaged, while among disengaged employees, 74% are actively seeking new employment opportunities.
Setting your employees up for success will also benefit you as a staffing firm. Happy employees who are fulfilled stay longer, while dissatisfied employees take their skills elsewhere. Communicating a positive candidate experience and then following through helps with lasting employee retention efforts.
3. Develop a Reward & Recognition Program
It would be hard to know what recruiting efforts need to be strengthened without knowing your workforce demographic. Baby Boomers, Gen X, Millennials, and up-and-coming Gen Z are all currently in the workforce.
Among the most dissatisfied yet largest generation, and one that is rapidly growing in the workforce, Gen Z may need some extra attention in recruiting efforts. Given that this young demographic entered the working world amid the pandemic and unpredictable environment, it’s no wonder they’re weary.
In fact, a recent study indicated that Gen Z-ers are all-around more dissatisfied with their work. Compared to their generational counterparts, Gen Z reports the following information during a recent Great Place to Work poll:
- They have less faith in their employer to manage well.
- They question the fairness of pay.
- They feel less satisfied in their work role.
- They have a general mistrust of employers due to COVID.
In this regard, offering rewards and recognition can greatly re-engage dissatisfied or distrusting employees. Offering competitive wages and employee perks is a critical factor.
As part of retention efforts, staffing firms can also incorporate other rewards and recognition programs that are easy to implement and don’t break the bank. While there are many ways to show someone positive recognition, out of the box employee perks are greatly appreciated.
4. Consider Virtual Hiring and Onboarding
Suppose you’re focused on investing in modern technology, recruiting experience, and gaining trust. In that case, you should also consider virtual hiring and onboarding.
While not every position can function in a completely remote setting, offering some sort of hybrid model or flexible work schedule may be beneficial when possible. The onboarding process significantly impacts predicting an employee’s long-term success with an agency.
Not only does onboarding impact recruitment, but most of it can be done online and automated. This allows your firm to focus on a more personalized hiring experience. Studies indicate that a positive experience during onboarding helps retain 69% of new employees for three years.
5. Offer Flexible Forms of Pay
While creating a positive work culture and enhancing retention efforts, you can’t overlook your employees’ needs. Remember that satisfied employees stay while disengaged people find other opportunities. If you want to keep reaching and retaining your workforce and stay competitive against other firms, you need to meet worker expectations.
One area that can be overlooked, especially among staffing or hiring firms, is flexible payment options. Nearly 64% of U.S. households were living paycheck-to-paycheck in 2022. Even increasing a worker’s pay may not be enough to keep up with the highest inflation in nearly 40 years.
To combat this financial stress, consider implementing other options for flexible pay instead. Earned Wage Access (EWA), for example, may be an attractive incentive. EWA allows employees to access the pay they’ve already accrued before their formal payday. This instant wage access perk can help your staffing agency improve retention, make clients happier, and improve your bottom line.
EWA isn’t a loan, and with the partnership of a Fintech company, it can be an easy incentive to put into place. Moreover, it appeals to your younger generation of workers, who demand a flexible and caring culture.
Stand Out in 2023 with These Staffing Agency Tips
Knowing what your workforce and clients need goes beyond pay raises and common workplace benefits. In order to keep their workforce satisfied and continue to meet clients’ needs in 2023, staffing agencies must find a way to meet employee expectations. Use these staffing agency tips to create an environment that shows your dedication to your employees.
Unsure where to get started? Learn why staffing agencies around the nation trust Juice to help them stay competitive by enhancing their customer and employee experience with customized digital solutions.
For example, Juice’s payout solution offers employees a no-minimum-balance digital neo-banking account at zero cost to employers. This solution includes Early Wage Access, instant payments, and other zero cost employee benefits that would normally cost thousands annually.