What’s in Store for the Staffing Industry in 2019?
With two months of the new year now behind you, you may already be seeing some trends forming in your agency. What you encounter could be part of larger, industry-wide trends for 2019.
What are experts predicting for the staffing industry during the remainder of 2019? If the first two months are anything to go by, it’s going to be an interesting year.
Continued Staffing Industry Growth
The staffing industry has been growing at an exceptional rate for several years now, and the trend is predicted to continue. The key difference is there could be a slowdown in the rate of growth.
Why is the industry going to keep growing? The trend towards temporary and contract employment is projected to continue apace. The gig economy is in full swing in the United States and Canada, and most experts don’t see this changing any time soon.
Changes in the market could also contribute to staffing agency growth. There are some concerns about an economic slowdown, which could translate to higher unemployment rates. Temporary and contract staffing is likely to expand in this scenario, which could mean more clients for staffing agencies.
Low Unemployment Introduces New Challenges
For the moment, however, unemployment is relatively low in Canada and the United States. This creates a more challenging environment for staffing agencies. Employers may still be on the hunt for new employees, but there are fewer job seekers.
This generates more difficulties for recruiters to successfully locate and place qualified candidates.
Two things could change this narrative for 2019. An economic slowdown could increase the number of people looking for jobs. This would make more candidates available.
A number of people aren’t counted in unemployment statistics because they’ve stopped looking for work. These people may now re-enter the market on account of low unemployment. This would create an influx of candidates, again making the recruiter’s job easier.
Investments in Technology
Another growing trend for 2019 is the increasing investment in technology. Many industry leaders believe technology has now become make-or-break for staffing agencies seeking optimal operations. Those who adopt new technologies will become leaders, while those who don’t will get left behind.
It’s probably the reason many experts suggest those in the staffing industry should increase their budgets for technology. Adopting new technology, such as chatbots and AI, could be the difference between growing your business and losing out to your competition.
A Shift to Service Orientation
One interesting trend to watch in 2019 is the shift to a service orientation within the staffing industry. Already, industry leaders are talking about the need to focus more on both the client and candidate experience.
Sustained growth over the last several years in the industry has increased the number of staffing firms. Competition is fiercer than ever, which means agencies like yours need a way to differentiate themselves and compete.
The experience you offer your clients and candidates is one way to offer something different. Candidates who have a good experience are likely to return for more assignments. They’ll also be more likely to recommend your agency to others. Clients who have a good experience are likely to continue working with you and even increase the services they purchase from you.
Rising Concerns for Compliance
Another industry trend to keep an eye on will be the increasing concern about compliance, especially in the Canadian market. In the last two or three years, a number of provinces have introduced new rules and regulations aimed at tightening the staffing industry.
New employment laws, like increased minimum wages and more paid and unpaid leave for employees, also affect your compliance efforts.
The staffing industry will continue to evolve through 2019. Although the road ahead isn’t without its challenges, there are also many positive trends to look forward to.