5 Staffing Industry Trends That Will Shape Your Business In 2020

Advances in technology have been disrupting industries at breakneck speed over the past 20 years, and the staffing industry is no different. First, it was online job boards like Monster and Craigslist. Then it was job aggregators like Indeed, collecting job postings from other sites across the web.

Next, LinkedIn created a place where potential candidates could be found, even if they hadn’t actively applied for a job. And sites like Glassdoor provided a venue for user-generated content, bringing the Yelp model to the job search.

So what’s on deck for the staffing industry in 2020?

There are five staffing industry trends that I believe are going to have a big impact in 2020, and technology plays a big role in all of them.

1. A more streamlined recruiting process

According to 73% of recruiters, talent shortages are the #1 staffing challenge right now. Unemployment is low, and competition for great candidates is high.

So staffing agencies and employers need to do everything they can to keep a candidate interested and engaged. A slow, opaque hiring process can turn candidates off and encourage them to seek employment elsewhere. Government jobs, for example, may lose out on qualified candidates with their average interview process of 54 days — much longer than the nationwide average of 24 days.

Instead, agencies will be streamlining their recruiting process and trying to fill vacancies more quickly. One way to do this is with automation. Agencies can send automated emails as the candidate moves through the application process. These automated emails can include next steps and a timeline when candidates can expect to hear back from the employer or agency.

By being open about the process and considerate of the candidate’s time, you’ll provide a better hiring experience. And remember — just because a candidate isn’t the right fit now doesn’t mean they won’t be perfect for an opening next month.

2. Focus on niche social media

Social media provides the opportunity to position your company as an authority in your specific field, and to develop the personal brands of your recruiters, which is a powerful way to drive more revenue.

It’s also a great way to reach not only potential customers but candidates as well. In fact, 92% of recruiters report using social media to find candidates.

Unsurprisingly, the majority of hirers (96%) are on at least one of the “big three” social media sites. 77% of recruiters are on LinkedIn, and 63% are using Facebook. But there are other platforms out there that can be helpful in your recruiting efforts.

If you’re on the hunt for developers, sites like Github and Stack Overflow can be great resources. Looking for healthcare professionals? Try AllNurses or the Mayo Clinic Social Media Network.

By sharing quality content on these sites and participating in discussions, prospects will see that you have your finger on the pulse of the industry.

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2. Remote hires

The “gig economy” has been on the rise for several years, and the repercussions are being felt throughout the staffing world. As the nature of work shifts to one of more independence, a remote workforce has become more appealing to both employers and employees.

On the hiring side, employers face a much larger candidate pool when they’re not limited to the company’s immediate location. Plus, there can be significant cost savings with a remote or flexible workforce. Companies can rent less office space for fewer onsite employees. And they can pay lower salaries by hiring staff from more affordable markets. It may also reduce turnover. 76% of workers say that flexible hours would make them more likely to stay with their current employer.

And for employees? Remote workers report that they can work with more focus and fewer interruptions when they work from home. 86% say remote work reduces stress, and 50% report taking fewer sick days.

Great workflow and communication tools, like Slack, are making it easier than ever to work with people halfway around the world. So expect to widen the net of possible candidates to cities, states, and even countries you may not have thought of before.

4. Chatbots

Many retail businesses and marketing firms are already harnessing the power of chatbots. But in 2020, more staffing companies will be using them too. Chatbots can help to take repetitive tasks like candidate fact-finding off your plate. Instead, you can set up a chatbot to communicate with prospects through text, social media messaging, or email.

Services like Mya or jobpal can ask questions about a prospect’s experience and qualifications and record the details for you. They can also schedule and coordinate meetings and calls, and answer FAQs for candidates.

By letting a bot handle these simple tasks, you’ll free up important staff time for the kind of work that requires a personal, human touch.

5. Reskilling

In a competitive market, it can be tough to find a candidate with the exact blend of experience and qualifications that you’re looking for. That’s why 2020 will see a rise in hiring for potential rather than skills. Then, staffing agencies and employers can provide the training that candidates need.

The right person can learn what they need to know. So recruiters will be looking for the right fit in other ways. Candidates who are ready to learn and share a company’s values can fill a position with great success, once they receive the proper training.

“The only thing that is constant is change.”

Heraclitus could have been talking about the staffing industry!

New technology and the rapidly changing way that we work represent exciting new opportunities in the staffing industry for those that keep up.

Stay sharp and use your knowledge of these trends to drive growth in the next year!



About TrackerRMS

TrackerRMS is a leading recruitment management system designed for the SMB Staffing company. Our industry-leading ATS Software will help you recruit faster and more efficiently. With over 20 years of experience, our recruitment software is built with you, the staffing professional in mind.

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