Many companies are turning to staffing agencies due to various reasons including a shortage of talent and the inability of companies to grasp expected growth. Recent studies have showed that most of the companies face finding qualified talent as their biggest challenge. Almost 68% agreed that it is one of their top 3 challenges.
This is happening because there aren’t many trained talents in the market. People are letting go of formal education because of the cost of education. This is leading to shortage in industries where training beyond high school level is a must. People are opting for freelance jobs and leading entrepreneurial lifestyle. They find working for others doesn’t make them happy per say. Fewer people are looking for employment ads.
For companies to grow, it needs adequate supply of qualified employees. As there is a lack of talented candidates available, companies are finding it difficult to keep up with the competition. The growth in such scenario is not possible.
This makes the path to growth full of ups and downs. It gives a lot of business at one time and then really slow periods in between. The company can’t maintain employees at the same rate when they are going through a tough time. If they do they will lose money and this will push the company away from growth all the time. But letting the employees go means letting the best qualified ones move to other positions and companies. This leaves the company with lack of candidates when business races again. So they turn to temporary staffing agencies to meet their exact requirements.
Hiring through staffing agency helps protect business plus the talented employees. They make sure the employees have other positions available during company’s slow time by offering them a chance to return back when the business grows. Business benefits automatically.