GRID 2022: Staffing Industry Trends Overview
2021: A triumphant rebound led by digital transformation
Heading into 2021, staffing firms were cautiously optimistic on the heels of a challenging 2020. Winning clients was a top priority and agencies seriously stepped up their investment in digital transformation.
A lot has changed in a year. Agencies enjoyed a strong performance in 2021, but an increased talent shortage has re-emphasized the need for candidate acquisition. Clients are not a top-three priority for the first time in a decade. The one thing that hasn’t changed? Agencies have once again taken a strong step towards embracing digital transformation: for the second straight year, adoption has nearly doubled.
What does 2022 look like for recruitment professionals?
Candidates dominate the agenda for 2022. The talent shortage is the top challenge after a hiatus last year. Candidate acquisition is the top priority, and candidate sourcing is the top recruiting obstacle. How are firms solving their candidate acquisition challenges? Digital transformation. After a breakthrough year in 2021, it is again at the top of minds for 2022 as the second overall priority for 2022. The investment appears to be paying off: firms who have already embraced digital transformation reported a stronger 2021 and higher expectations for 2022.
How Will Your Operations Budget Change in 2022?
How Will Your Technology investments Change in 2022?
Candidate engagement has always been a top priority for firms, but it has become a singular focus in 2022. How are firms handling the shortage and what approaches are they taking?
Rather than simply focusing on new talent, we have reached out to our database of over 50,000 candidates that we know are working within a relevant industry to check in and ensure we have up-to-date information on the types of roles they are looking for
Staying informed on what it takes to pull someone from a job. Lots of training on the different strategies. Getting creative. Informing our clients what it will take to get the kind of candidates they are looking for.
Only accepting assignments that are competitive from a compensation and opportunity perspective and where the client is cognizant of the tight labor market and the need to move with urgency.
We are trying everything possible, including evaluating or using new platforms and tools, hiring more recruiters, and strengthening our brand to capture more candidate's attention.
We have quite a few manual processes that are a time-suck from the team. However, we have a parent company that has other more important tech issues, so we are on the "back burner" for now.
Lack of qualified candidates and inefficient talent sourcing.
I find that there are a lot of talented people who don't know what kind of job they need and whether the job is suitable for them, which makes my job of collecting needs more difficult.
In this market, talent has a short shelf life. We must stay engaged with them and provide updates on the hiring process sometimes we don't have the client feedback we need to do this.
The landscape for winning and maintaining clients has changed radically in the last two years. Amidst the peak of the pandemic in 2020, respondents cited winning business as their top overall priority. Less than two years later and client relationships don’t rate as a top priority, and the client-related challenges that agencies face have shifted dramatically. Still, building relationships with clients remains an important skill, and most respondents believe they do this well.
Is your agency above-average when it comes to handling client relationships?
The vast majority of respondents believe that they are better than their competition at managing client relationships. Past reports have found that the majority of recruitment businesses don’t use NPS or otherwise quantify client satisfaction, so there may a discrepancy between perception and reality in some cases.
What is your biggest obstacle to winning new clients?
The top client challenge of 2020, hiring freezes, is significantly less of a problem for businesses heading into 2022, but competition remains as fierce as ever.