The biggest challenges for staffing agencies in 2022 involve a plethora of factors that could complicate how well they do their job. Staffing agencies face a make-or-break moment as a new set of challenges emerge in 2022. In addition to the industry-wide struggle to recruit enough candidates, staffing managers deal with high client expectations and unprecedented obstacles. COVID-19 contributed to some of this, but much is because the industry is in flux.
The Biggest Challenges for Staffing Agencies in 2022
Leadership must recognize and adapt to new demands rather than dismiss staffing agency challenges as a fluke. Find out how the biggest challenges faced by staffing agencies may provide an opportunity to improve operations.
Improving Retention Rates
It’s no secret that much of the workforce has quit their jobs. However, those who have remained in the job market are increasingly in demand — especially if they’re highly skilled. Staffing agencies are finding it more challenging to place these candidates. Additionally, it is becoming tougher to retain them due to the available opportunities.
A promising new hire can find better pay or benefits from a competing employer in many cases. Alternatively, how can staffing agencies combat this problem and ensure that retention rates remain high? Promoting work-life balance is a great way to incentivize new hires to stay. Also, burnout is a significant reason why these workers leave their jobs. Employers and staffing agencies can retain their star candidates by checking in periodically and providing resources to support staff wellness.
Recruiting More Boomers
Young people aren’t the only ones leaving the job market. As Baby Boomers settle into retirement, a significant pillar of the workforce has disappeared. Of course, this generation still has much to offer. They are still valuable to recruiters. Many staffing agencies have initiated efforts to bring them back to work with enticing benefits and appealing positions. However, staffing agencies can invest in reskilling and upskilling campaigns to lure Boomers back. Thus, it helps them when they return to the workforce with a new set of professional capabilities.
Handling Vaccine Mandates
Unfortunately, the workplace has become a politicized arena as people debate the merits of a vaccine mandate. President Biden announced that employers that meet specific criteria must ensure that their staff is vaccinated or maintain daily COVID-19 testing. Unsurprisingly, there was a split down the middle. Some applauded the decision while others decrying its restrictions.
Staffing agencies are now caught in the middle of the debate. They have to look out for employers who require a vaccine, and if their candidates want to work there. Staffing agencies must consider this issue in terms of legality and liability. Violating a mandate could cause a staffing business insurance claim or legal action. Agencies should consult with their staffing business insurance provider to ensure that they comply with the terms of their policy.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.