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Optimistic About Performance, Businesses Are Looking to Hire

October 23, 2023

by Hannah Hicklen

After layoffs and hiring freezes in 2022, business leaders are now looking to fill gaps in their workforce. With talent in short supply, more are turning to hiring and recruiting agencies to hire qualified workers.

Despite economists expecting a recession in early 2024, the majority of small and mid-sized business owners (77%) are optimistic about their business outlook, according to a survey conducted by PNC in August.

With higher confidence in how their businesses will perform, many have invested in expanding their teams over the last year and even more are looking to hire in the upcoming months.

Clutch data shows an 18.78% increase in demand for staffing and recruiting services YoY in Q3, reflecting a growing need for skilled workers across all industries.

Especially after mass layoffs and hiring freezes in 2022, companies are looking to fill gaps in their workforce.

Demand for Hiring & Staffing Services  in Q3 YoY Bar graph  
Hiring Remains a Challenge for Small & Medium-Sized Businesses

As the unemployment rate remains relatively stable at 3.8%, it has become challenging for companies to find and hire qualified employees.

With talent in short supply, attracting the right candidates for open positions is becoming harder and more expensive. In fact, one in three employers say it’s becoming harder to find candidates that meet their requirements.

Onur Kotlubay, the CEO and founder of YouParcel, a global provider of fulfillment and shipping services, acknowledges that there are many factors impacting recruiting.“Hiring challenges in today's job market are multifaceted. The rapid pace of technological advancements has led to a significant skills gap. Finding candidates with the right blend of technical and soft skills can be difficult,” Kotlubay says.

Identifying and attracting candidates who are the right fit for the company culture, values, and job requirements can be a time-consuming and pricey endeavor. Recruiters and hiring teams spend time interviewing applicants, reviewing references, and screening in order to find the perfect candidate.

To fill open positions with well-qualified candidates, companies need to effectively communicate their employer brand and value proposition.

In an attempt to attract top-talent and appeal to more potential candidates, YouParcel has adapted their recruiting process to highlight key benefits for employees. Kotlubay describes how they’ve been able to effectively fill open positions, saying “The competition for top talent is fierce, so we've enhanced our employer brand by showcasing our commitment to employee growth and development.”

On top of that, they’ve kept employee preferences in mind. Knowing that the majority of workers prefer working remotely, they’ve adapted their recruiting and onboarding processes to expand their pool of candidates.

“These strategies ensure we attract and retain the best-fit candidates despite the evolving hiring landscape,” Kotlubay claims.

Need help hiring? Learn more about how much it costs to outsource your hiring needs in Clutch’s ‘HR Staffing & Recruiting Pricing Guide.’

Benefits of Hiring a Recruiting & Staffing Company

For both companies with and without an in-house recruitment team, hiring a recruiting and staffing partner can help them connect and hire qualified candidates on a shorter timeline. Here are some of the biggest reasons why companies outsource their hiring needs:

  1. Access to Talent
  2. Expertise & Industry Knowledge
  3. Flexibility & Scalability
  4. Streamlined Hiring Process

Access to Talent

Staffing agencies have extensive networks and resources to attract and connect companies with top talent quickly. This can help companies gain access to qualified candidates that they may not have otherwise found.

Expertise and Industry Knowledge

Staffing agencies often specialize in specific industries and have a deep understanding of job trends, recruitment practices, and job market conditions. This expertise can be invaluable in finding the right candidates for specific roles.

Flexibility & Scalability

Staffing agencies can provide companies with flexible staffing solutions, whether they need temporary, contract, or permanent employees. This allows companies to adapt their workforce based on changing business needs.

Streamlined Hiring Processes

Staffing agencies have established processes and systems in place to streamline the hiring process. This can include pre-screening candidates, scheduling interviews, and managing the entire onboarding process. 

Seasonal Staffing for the Upcoming Holidays 

In addition to helping their clients find full-time workers, recruiting and staffing firms can help their clients find part-time and seasonal workers as well.

With Black Friday and the holiday season right around the corner, businesses looking to take advantage of the shopping boom need to hire seasonal and part time workers.

American retailers already are expecting to add 410,000 seasonal positions in order to keep up with consumer demand. While these positions are likely being led by large employers like Amazon, Target, and Macy’s, smaller businesses will need additional support as well.

Over the next few months, companies will need help filling roles for retail associates, customer service representatives, stocking associates, and delivery drivers in particular. These positions will be important to ensuring that consumers find and receive everything they’re looking to buy this holiday season.

Like many businesses, YouParcel is looking to hire this holiday season. “At our logistics company, the holiday season demands a surge in labor. We primarily look to fill roles in warehouse operations, delivery drivers, and customer service. However, hiring seasonal workers presents challenges, notably finding individuals willing to work during holidays,” Kotlubay says.

To make sure that they have enough staff to meet customer demands during this holiday season, YouParcel is trying to appeal to part-time workers looking for flexible positions.

“We offer competitive wages, flexible scheduling, and performance incentives to attract and retain talent. Additionally, we've found success in rehiring previous seasonal workers already familiar with our processes,” Kotlubay says.

Still, even those incentivizing part-time workers may find it challenging to fill open positions.

Where in-house recruiters may have difficulty finding reliable workers for the season, a staffing firm’s network of qualified candidates makes it easier to find trustworthy candidates with enough skills and experience.

Additionally, staffing firms are able to sort through resumes, interview applicants, conduct background checks, and support onboarding processes to streamline the hiring process for their clients.

As small and midsize business leaders plan for Q4 and the new year, they will likely expand their workforce, and staffing and recruiting agencies can help.  

Recruiting & Staffing Firms Help Clients Fill Growing Work Needs 

As hiring has become more challenging over the last year, companies have turned to recruiting and staffing agencies to help fill open positions.

With extensive networks, industry knowledge, and connections, these companies can help their clients hire for both permanent and temporary positions. Their process streamlines the hiring process, allowing clients to be flexible and scale as needed.

As we enter the holiday season, this trend is likely to continue.

Looking to scale your team? Connect with top-rated recruiting and staffing firms on Clutch.  

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