3 Ways Businesses Are Addressing Worker Shortages
By Trevor Sheffield
January 17, 2023
As worker shortages strike again, businesses are looking for ways to make up the manpower they’re missing. They accomplish this in many ways—but what do these tactics mean for staffing agencies? Let’s discuss strategies that can both help you stay ahead of the curve and keep you aware of what the businesses you have relationships with may be doing.
A simple way businesses are drawing in new workers is by offering pay raises. Whether this is an overall increase in pay rate or a sign-on bonus, applicants are often persuaded by the idea of an opportunity to earn more money. As a staffing agency, it’s vital that you keep up with the appropriate pay rates being offered in the industries you work with in order to remain competitive. This will help you keep your hiring pool full at all times as well.
Remote Contingent Worker Flexibility
Many businesses are offering remote working options and more flexible hours for their contingent workers. With this added flexibility, more individuals are able to fulfill the requirements of the position. This broadens the pool of applicants without requiring any spend. Ultimately, those who are working hope to find a place where they won’t just make money but will be treated like human beings with needs that matter. Allowing flexibility with hours and remote work shows care for your employees and entices more applicants to fill job positions.
In order to cut costs, businesses are reconsidering their relationships with their vendors. In many instances, a vendor or service provider may be overcharging for their services or only performing at a sub-par rate. Business owners want to find the best value for their dollar when it comes to partnering with vendors. Evaluating their connections and use of vendors can help them find ways to save their budget. It can also present new opportunities to increase their workforce and search new avenues for employees.
Of course, as other businesses take these measures to find new workers, it’s possible you might find yourself in a bind. As the owner of a staff agency, one of your main roles is solving the problem of the worker shortage for companies. Let’s discuss the risks behind each of these tactics.
With pay raises, it’s possible companies will incur budgeting problems. It’s also possible your staffing agency won’t be able to keep up with the rates offered for the services you’re looking to provide. Additionally, when companies change or reevaluate vendor relationships that often means they consider their relationship with their staffing agency.
Consider what would encourage a company to find a new staffing agency. For what reasons are staffing agency and business relationships terminated?
There are endless answers to these questions—but a primary one is that a business may prefer to work with a staffing agency that keeps up with the changes in the market, including payroll and time tracking technology. Evaluate how your agency does these things. Staffing agencies that stay on the ball often find they have greater pools of workers to offer the companies they have workers with, which cycles back around to helping solve the original problem: addressing the worker shortages.
How will you improve your agency and address worker shortages? If you’re hoping to keep up with time tracking and payroll technologies and softwares, learn more about what Timerack has to offer here.