More Companies Turning to Staffing Firms in Response to Tight Labor Market

Survey finds many hiring managers don’t have the time or budget to conduct a timely employee search

February 1, 2019

Finding the right employees in a tight labor market is a challenge for many companies— building service contractors and cleaning businesses not excluded. In response to this challenge, more than half of hiring managers (54 percent) plan to increase their use of staffing firms over the next five years, according to a new survey by CareerBuilder.

The surveyed managers listed their biggest hiring obstacles as access to candidates with the right skills (52 percent), finding the time to hire workers (40 percent) and having the budget to conduct a hiring process (34 percent). Among hiring managers who worked with staffing firms:

  • 42 percent needed to hire someone more quickly than they could on their own
  • 41 percent needed access to candidates with specialized skills
  • 37 percent had a difficult time filling positions on their own.

Among hiring managers who chose not to use staffing firms:

  • 40 percent were trying to save money by hiring on their own
  • 28 percent said staffing agencies do not have workers with the skills they need
  • 26 percent believe the best candidates do not work with staffing agencies.

Although many millennial hiring managers are currently using recruiters, 59 percent believe that technology will eventually enable them to do more hiring on their own and reduce the need for staffing firms.

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