A new study, Staffing Hub’s 2022 State of Staffing Benchmarking Report, found that both IT and Industrial Staffing are set for significant growth as we move through 2022.
In fact, the report found that staffing industry professionals in general expect their firms to grow by double digits this year (80 percent) - the highest rate since the report was first launched in 2016. Digital transformation is a crucial aspect to facilitate this growth, with respondents planning to increase their tech investment throughout the year.
Some of the key findings of the report include:
- Almost half (46 percent) of workforce respondents plan to look for a new job in 2022. The most common motivation is higher pay (49 percent).
- Nearly 60 percent of staffing industry professionals believe technology provides a competitive advantage for their business.
- Direct sourcing and referrals continue to be the most effective lead sources for finding new candidates.
In this blog, we summarize this report to help give you an overview of the current state of staffing in 2022 with an insight into today’s contingent workforce.
The state of the staffing industry
The study, which surveyed 275 staffing professionals across all verticals, discovered that the staffing industry experienced incredible growth in 2021. More than one in five (21.5 percent) respondents said their firm grew by more than 50 percent, and many more than doubled.
Industry leaders are optimistic that this growth will continue. Almost eight in 10 (78.6 percent) respondents expect their agencies to see double-digit growth this year. That’s the highest since we started conducting this survey in 2016.
In 2021, the IT market in particular took off, likely fueled by the shift toward working from home. This year, the industrial vertical is expected to skyrocket: 93 percent of industrial respondents in our sample predict growth of 51 percent or more for the year.
Finding Qualified Candidates: Biggest Challenge for the Staffing industry
Finding qualified candidates is the top challenge in the staffing industry, and this has been true since the State of Staffing report was first launched in 2016. Getting candidates to respond is the second most challenging job for staffing agencies.
The staffing industry’s biggest opportunities
In addition to technology and automation, which were the top opportunities in last year’s report, providing an excellent employee and candidate experience and owning a niche space in the market emerged as two major ways staffing agencies can succeed in the current tight labor market.
This is reflective of what we have seen here at Conexis, with many organizations tapping into more niche staffing agencies and industry (or location)-specific vendors to access top talent.
The importance of digital transformation
The staffing industry has dramatically changed its attitude toward technology in recent years, with many organizations realizing that digital transformation is a crucial component of facilitating new growth.
The survey found that today a majority of companies see the value of technology, with many believing recruiting automation will transform the industry.
The Great Resignation
The Great Resignation has had a huge impact on staffing in the past couple of years, creating a huge gap between the number of advertised roles and the number of available workers to fill them.
The study, which surveyed 583 members of the workforce about their plans to look for a new job, found that 46 percent of respondents plan to look for a new job in 2022 - with higher pay the top reason by far for switching jobs (49 percent).
There were some small differences in the type of worker more likely to look for a new job:
- Men are slightly more likely than women to look for a job (48 percent compared to 44 percent).
- Younger respondents are slightly more likely to look for a job than older respondents.
- People employed full-time or on a freelance basis are less likely to look for a job than people employed part-time or on a temporary basis.
“There are now more job openings than jobless people,” said Krista Garver, Managing Editor at Staffing Hub. “It’s a great time to be in the job market, and workers know it.”
Interested in learning more about how a VMS can help your organization better manage your Contingent Workforce?
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