The staffing industry has grown almost twice as fast as the economy, on average, since the end of the Great Recession.
Understanding last year’s staffing trends and challenges will be crucial to implementing effective business strategies in 2019. The staffing industry enjoyed tremendous growth in 2018; staffing firms and employers were faced with the challenge of struggling to recruit enough qualified candidates to fill positions in much tighter job markets. This trend is expected to continue through 2019, as illustrated by the following statistics:
Global staffing revenue is expected to grow by 6% in 2019 with several of the largest markets expected to grow by double digits. No markets are expected to decline. (Staffing Industry Analysts)
The total U.S. staffing market will increase 3% in 2019. (Staffing Industry Analysts)
Current unemployment rates in Luxor’s primary markets are:
Dallas/Fort Worth/Arlington – 3.3%
Houston – 3.8%
Burlington, NC – 3.3%
Three primary factors have affected the hourly recruiting game, and recognizing these factors is an important first step toward implementing an ongoing staffing strategy.
The hourly evolution and the resulting shift in control. Gone are the days of dozens of applicants vying for a few open positions. 2019 will be a year of more open jobs than available qualified workers to fill them; thus, power has shifted from employers to job seekers, and turnover rates will continue to surpass pre-recession records.
Shifting challenges. When the problem was too many applications for every open position, employers needed ways to manage tons of applicants and quickly weed through them all to identify the most qualified candidates. Today’s challenge is attracting enough applicants to fill the top of the recruiting funnel—then retaining them. The current generation of job seekers is faced with a wealth of opportunities, and in order to end the hiring cycle, employers must do more to recruit, attract, and differentiate themselves—to both job seekers and current employees.
Consumerization-fueled expectations. As the digital economy grows, the consumerization of business technology as a whole takes center stage. This shift is crucial, as the workforce is now dominated by Millennials and “Generation Z”. As job seekers, they expect the same user-driven experience from the hiring process that they enjoy in every other aspect of their lives—think Apple, Netflix, and Google. This group has also put significant emphasis on mobile technology; for most, their smartphone serves as their primary (or only) computer. Current technology forces the entire recruiting function to adapt to an increasingly mobile-friendly, real-time, personalized experience. Anywhere, anytime, any device has become the mantra for this population—and it’s here to stay.
So how can businesses meet these challenges head-on going into 2019? We recommend an emphasis on four foundational concepts to achieve a scalable, sustainable hourly recruitment strategy that sets you up for success in 2019 and beyond:
Diversify your approach.Modern recruitment strategies incorporate multiple partners, platforms, and tools—with a focus on constant exploration of new methodologies.
Recruit with precision. To maximize ROI on every recruiting dollar, target spending on the exact markets and positions you need most.
Know your metrics. Testing, measuring, and modifying your approach regularly is the only way to truly know what works and what doesn’t.
Budget for results. A pay-for-performance approach allows you to make the most of every dollar. It enables you to forecast, budget, and contract for the number of clicks you will need in order to meet your headcount requirements.
We at Luxor Staffing are growing right along with our job markets. With over a century’s worth of combined experience in the staffing industry, our management team understands the challenges this new year brings. We stand ready to help you meet and overcome these challenges by offering the same level of service you would normally expect only from a small, hometown staffing firm. Our objective is to give you the time to focus on doing what you do best—today—by helping you recruit the talent you will need to do it even better—tomorrow.