In today's world of work, the need for skilled employees continues to rise as different industries strive to meet the ever-changing demands of the market. 

But even with constant hiring efforts, most organizations still find it difficult to employ qualified candidates who possess the specific skills they're searching for. Hiring managers often have difficulty bridging the skills gap present in their organization. 

How exactly can companies resolve this gap that seems to be present in every industry? The best solution relies on outside sources: staffing companies. 

Skills Gap and its Impact 

This refers to a situation where the skills and capabilities of candidates do not match those that companies need. This makes it difficult for hiring managers to find the right fit for their open positions. 

According to a study made by the United States Chamber of Commerce, 74 percent of recruitment leaders agree there is a gap in skills within the current labor market.¹ 

This gap causes a delay in the hiring process and can hurt companies in various ways. Some examples of its negative impacts are as follows: 

• Lower Productivity Rates: When there are only a few qualified people working on a project, the amount of time needed to accomplish milestones lengthens. 
• Lower Quality Outputs: Some employees are still required to finish projects assigned to them despite not having the required skills for the tasks. This results in lower-quality products or services being offered. 
• Decrease in Profits: When production takes longer and creates an output that doesn't meet quality standards, the company's profits can be significantly affected as well as its reputation in the market. 

 
Take the manufacturing industry as an example. The evolution of technology and the constant innovation of machines have forced employers to seek different skills than what they would usually look for. In other words, the skills and expertise needed to work in the industry are changing. 

In 2021, the National Association of Manufacturers found that 80 percent of companies say their top challenge is the inability to attract and retain a quality workforce. This is projected to worsen as baby boomers continue to retire.²

Since there are significantly fewer employees than needed, experts predict a potential negative economic impact amounting to 2.5 trillion dollars if the gaps continue to exist. 

Staffing Services as the Key to Bridging the Skills Gap 

Once your company recognizes the mismatch between the skills you need and the skills your employees possess, you can start exerting effort in bridging the skills gap present in your workforce. 

This can be done in many ways but one of the most efficient solutions you can choose is hiring a staffing company to fill in the gaps for you. 

There are many advantages to utilizing staffing services regardless of your industry. The following are seven detailed benefits of purchasing the aid of staffing companies to solve the problems of the skills gap at work. 

Company-Wide Skills Assessment 

It’s impossible to provide solutions for problems that are unknown. Before a staffing company can help you, they first need to identify the gaps present in your organization. 

This is done through a company-wide skills assessment which involves all your people. This is necessary so the staffing company you hired can gain valuable insights into the skills your employees have and the specific skills gap that needs to be filled. 

Reduced Recruitment Costs 

The Society of Human Resources (SHRM) Foundation found that about 60 percent of hiring costs are spent on soft costs. This refers to the paid time professionals spend on the steps of the hiring process such as screening applications and interviewing potential candidates.³

When you hire a staffing company, they will take over these duties resulting in fewer expenses related to recruitment. For example, there is no need to pay for advertisements to attract candidates since staffing agencies have a vast network that can be used for sourcing candidates with the desired skill sets. 

Time-Efficient Recruitment 

Typically, one in-person interview lasts from 45 to 90 minutes.⁴ So imagine the time wasted in interviewing dozens of candidates who don't even possess all the skills you need for the open role. 

Remember that a delay in bridging skill gaps can result in poor performance and lower sales rates for companies. This means time is of the essence when finding potential hires to fill in the gap. 

This is where staffing agencies shine. Thanks to their connections and expertise, they are well-known for their ability to streamline the recruitment process for more time-efficient and successful hiring. 

Read More: 5 Ways to Speed Up the Hiring Process 

Access to a Pre-Screened Candidate Pool 

One of the reasons why staffing companies are great at bridging the skills gap is that they have access to a wide talent pool filled with experts who already possess many valuable skills. 

Instead of blindly looking through job applications and wondering which of them have the experiences you're looking for, you can simply rely on the network of pre-screened professionals your chosen staffing company has to offer. In this way, you have the assurance that the people who will join your company are truly the ones you need. 

Accurate Employee Placement 

Companies would be able to focus on more important tasks since their hired staffing agency will handle the responsibility of accurately filling positions with the right experts. 

Using their in-depth knowledge about your industry and their years of experience in the field of staffing, they can ensure that the people who join your organization can fill the skills gap your workforce has. 

Develop Training Programs 

Staffing agencies have other services to offer aside from recruitment. For example, they can also develop training programs for current employees to gain the skills the company needs. 

Through close collaboration with company leaders, staffing firms can design tailor-made programs that aim to equip employees with the necessary skills. 

Whether in tech or in finance, your employees would be ready to meet the evolving demands of your business and bridge any existing skill gaps within your workforce. 

Flexibility in Addressing Needs 

The market in every industry around the world is an ever-changing landscape that encourages companies to remain adaptable to any situations that may come their way. This includes the constant shift in the demands for skills. 

At one moment, you need a dozen employees who can use a specific programming language. The next thing you know, you're already using the latest framework and need people who can use it instead of the former. Situations like this make hiring staffing agencies worth it. 

Staffing companies have the ability to offer flexibility to their clients. Whether you need to upskill, reskill, or down-skill your workforce to meet the current skill demand, you can do so with the help of your chosen staffing firm. 

Read More: The 2023 Ultimate Guide to Talent Acquisition 

ALLIED ONESOURCE IS YOUR KEY TO BRIDGING THE SKILLS GAP IN YOUR COMPANY 

As one of the oldest staffing and recruiting companies in the country, Allied OneSource is here to offer you timeless solutions to solve your workforce needs. We’ll help you fill any skills gap by connecting you with outstanding people to ensure your organization maintains a competitive edge.

Reach out today to learn more! 

References 

1 Clark, Suzanne. “Closing the Skills Gap” US Chamber of Commerce, 14 Mar. 2020, https://www.uschamber.com/workforce/education/closing-the-skills-gap Accessed 19 July 2023. 

2 “NAM MANUFACTURERS’ OUTLOOK SURVEY.” National Association of Manufacturers, 9 Sep. 2021, https://www.nam.org/wp-content/uploads/2021/09/NAM-Outlook-Survey-Q3-2021.pdf Accessed 19 July 2023. 

3 Navarra, Katie. “The Real Costs of Recruitment.” SHRM, 11 Apr. 2022, https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/the-real-costs-of-recruitment.aspx Accessed 19 July 2023. 

4 Herrity, Jennifer. “Q&A: How Long Does an Interview Usually Last?” Indeed, 17 Feb. 2023, https://www.indeed.com/career-advice/interviewing/how-long-do-interviews-last Accessed 19 July 2023.