US Staffing Industries Trends 2023 – The Golden Period of Opportunities

US Staffing Industries Trends 2023 – The Golden Period of Opportunities

Do we need to tell you how 2020 has been the most challenging year for staffing? The industry saw a huge downfall, but in 2021 stats have been different. The staffing industry saw great growth in 2021, and it is still growing. Is this trend still persisting in 2022 as well?

Consider looking at the global staffing forecast when trying to figure out the staffing trends in 2022 in the USA. The USA is still number one when it comes to staffing revenue and will continue its dominance. As per the Staffing Industry Analysts (SIA) report, the staffing industry generated $445 revenue worldwide in 2020. Over 31% of revenue was generated in the USA alone, reflecting its trend in staffing. After experiencing the peak in 2021, it is forecasted to increase in 2022.

According to a recent report, the United States needs around 10 million employees to fill the open jobs. And only 8.4 million are looking for job opportunities. Many factors are responsible for fueling the growth of the staffing market in the country. Keeping all the key points in mind, we have curated a list of trends to watch out for in 2022.

1. Talent dominates as candidates continue to reign

In 2021, the staffing industry suffered from a talent shortage, not only in the USA but worldwide. Now, the United States is bouncing back, making employees the top priority of companies. Agencies are focusing on the talent-centric approach in 2022 rather than the client-centric approach.

For enhancing the employee experience, candidate acquisition has become the top-most priority. Companies are utilizing different strategies to attract and source the best talents. Winning new clients is not in the top three priorities for the first time in the trends report. Trends that we think will continue in 2022 are-

• Candidate Acquisition

Sourcing the best performers and candidate acquisition is on the top of the agencies’ list. They are even taking experts’ help for this. Many industries have also automated recruitment processes. They are using video interview software for the same purpose.

• Perks and benefits

With the increase in the demand, candidates are not likely to get settled in less. They look for high-quality benefits before accepting an offer letter. With the fierce competition out there, candidates are not afraid to pass up on an offer with subpar perks. Therefore, the staffing companies are offering excellent benefits to their employees.

• Increasing salaries

Around 73% of HR professionals reported that candidates are demanding higher salaries because of the employee shortage. According to Robert Half’s Salary Guide, the salaries of candidates will rise by 3.8% in 2022. The rising salaries make the staffing industry an even more attractive destination for individual growth.

• Improving candidate experience

Agencies are focusing on improving candidate experience by communicating with employees frequently. One of the main ways to achieve this goal is to appreciate the workers. Staffing industries are likely to create a new policy that entirely focuses on the positive employee experience.

2. Remote work culture is the candidate’s priority

Work-life balance is one of the deciding factors for candidates across the globe. With remote work becoming a reality, many employees are unwilling to return to the office. Employees now prefer working in their personal space. . The agencies or companies are trying to give flexible work options to their employees. Sourcing candidates is a lot easier if you are willing to offer flexibility to your workers.

Agencies or companies can opt for the work from home, hybrid work culture, or even a four-day office in a week.  Candidates search for companies that provide one of these options to maintain the work-life balance. Additionally, there is no stress of a commute.

3. Technology tools are expected to become prevalent

Staffing agencies need to revamp their traditional approach to hiring due to the talent shortage. The pandemic has made everything digital, and the recruitment process should not be an exception. The staffing industry is shifting to technology products to speed up and automate the hiring procedure. They must choose the best-suited video recruiting software to improve the quality of the hire and to avoid any biases.

Technology tools are expected to become prevalent in 2022 because of the benefits these tools offer. Many companies have started using these tools. These tools not only improve the speed of interaction but also streamline the interviews quickly. Agencies can search, source, and get the best performer at ease. Please note that the staffing industry can’t rely on automation entirely, especially for the roles that seem difficult to hire. Adopt a high level of communication for that. However, you must consider automation to transform the recruitment process.

Set up a demo to learn how to automate your hiring process.

4. The focus is on valuing skilled workers

One of the top reasons for leaving a job is the candidate’s manager. According to a study by Predictive Index, two-thirds of employees say that their managers are not skilled enough for the position. Managers treat their employees with disrespect, which leads to leaving their job. They feel demotivated and can’t give 100% to their work.

Staffing agencies have now started realizing the impact of this kind of situation. Therefore, they are likely to take needed steps to make the employee feel valued.

  • Design a new policy where employees can talk about their managers freely with the management if there is any problem. 
  • While hiring managers try to avoid any biases by ignoring such situations. 
  • Have regular interaction with the employees, and take feedback on managers’ behavior towards them. 

All these points have been taken into consideration by the staffing industry.

5. Immigrant employees are welcomed

Roughly 1 million immigrants come to the USA in a normal year. Around three-quarters of them start working here. Due to the coronavirus pandemic in 2020, there was a huge fall in the number of these immigrants. The staffing industry is welcoming job seekers from different areas to see the impact on the outcome. This step is also taken to overcome the challenge of talent shortage.

6. Agencies are adopting an industry-specific focus

The niche skill segment is a priority in 2022. Those days were a matter of the past when hiring managers used to talk to multi-tasking workers and clients. Now, they look for candidates who can meet a particular role’s demands, eliminating the chances of talent shortage. The focus is now on the niche skill segment.

Furthermore, candidates like to talk to managers who understand their skills, career goals, and aspirations. They avoid going to a company where their skills are not appreciated. Agencies are now creating a candidate base built up to understand the requisite skills for the job.

7. Appreciating internal talent is a new focus

According to a recent survey, 550 leaders say that they are focusing on internal talent. Agencies with talented and creative team members are investing in their talent. They appreciate employees’ work and keep them motivated. Furthermore, instead of hiring a new candidate for a promoted role, they are looking for the needed skills from within the company. Keeping the talent pool in the agency is important to achieve all the desired goals. They understand all the goals and will give their best to accomplish the task.

Furthermore, when you appreciate any employee, they feel valued. As a result, they work even harder to make leaders proud. The staffing industries in the USA have understood it, and they are following this trend.

8. The staffing industry is finding soft skills

You must have heard the phrase, “hire for culture.” This is actually true. As reported by the LinkedIn Global Talent Trends survey, 92% of HR professionals said that it is essential to recruit candidates with well-developed soft skills. In today’s changing world, it is increasingly imperative.

According to another survey, 89% of HR professionals and managers stated that bad hires usually have poor soft skills. Agencies are now taking this point into consideration, and they are finding candidates with solid soft skills. Great soft skills can enhance both productivity and retention.

Wrapping it up

With the tremendous growth in the staffing industry in 2021, there will not be a setback in 2022. These are the top trends that are going on in the USA and are most likely to continue in the future as well. Employees now feel more valued and comfortable than ever before.