9 Challenges Facing Staffing Agencies in Canada

9 Challenges Facing Staffing Agencies in Canada

There are ups and downs in every industry—staffing is no exception. While there are many benefits of working in the staffing industry, there are also numerous challenges facing staffing agencies. If your firm can overcome the following challenges facing staffing agencies, you’ll be on the road to success.

1. Legal Compliance

Every business is required to operate under Canadian law. This means that businesses must follow legislation accordingly—if you neglect to do so, you could wind up in serious legal troubles. The problem is, however, that Canadian laws are constantly changing. It’s challenging for staffing agencies to keep up with these changes, yet it is necessary.

There are back office solutions available to assist with legal compliance, making this challenge easily overcome.


2. Baby Boomer vs. Millennial Hiring Practices

Previous hiring practices for baby boomer employees have focused primarily on monetary elements of a position—pay, benefits, vacation, etc. Money was more important to employees than the workplace experience.

To turn the staffing world upside down, millennial employees are looking for a unique company culture, flexibility, and career advancement opportunities—and they’re willing to give up some of their pay for these factors. Staffing agencies therefore need to be able to tailor their hiring practices to attract the right kind of talent to appeal to the desired candidates.


3. Recruiting Recruiters

It takes a special kind of person to be a recruiter. Finding the person who’s right for the job may end up being more difficult than filling even the toughest positions for your clients.

Keep your eyes peeled for candidates who possess the necessary skills to succeed as superstar recruiter.


4. Applicant Organization

If your candidates aren’t organized in an efficient manner, you could be wasting valuable time searching through applications. An applicant tracking system (ATS) can help you keep your candidates organized for future positions.

Taking this one step further, an ATS that is combined with a customer relationship management (CRM) platform will help you keep all your communications with your candidates and clients in one easily accessible place. This will help you maintain valuable relationships through organization, which can often be one of the greatest challenges facing staffing agencies.


5. Quick Turnaround Time

Sourcing a difficult position means filling it may take longer than usual. However, clients want everything as soon as possible. Staffing firms need to be able to produce quality candidates quickly, which is easier said than done.

Network, network, network to find those top candidates and grow your candidate pool.


6. Competition

The staffing industry continues to grow each year. As such, the marketplace is becoming filled with more and more staffing agencies. One of the challenges facing staffing firms is the ability to stand out among the competition—what’s your differentiating factor?


7. Demanding Clients

Not only do your clients want candidates as soon as possible, but they may have other requests, which may prove challenging. Whether their expectations for candidate qualifications are too high or they’re looking for a lower rate, it may be difficult to meet client expectations.

With such a high competition rate in the staffing industry, it’s essential to keep your clients happy.


8. Dishonest Applicants

Nothing is worse than going through the interview process and finding out a candidate exaggerated their qualifications. It wastes your time and your client’s time, and it can lead to disastrous results. Staffing agencies must be more diligent in the pre-screening process if they want to avoid this challenge in the future.


9. Too Much on the Go

Payroll. Compliance. Administration. On top of recruiting, these extra components of your business can pile up. You can’t neglect them, but they take away from the time you can dedicate to recruiting. Outsourcing to a back-office solutions provider can help take a load off your plate, and get you back to your main professional focus—recruiting.