Talent Shortage Leads to Growing Contingent Workforce

March 1, 2016 – Seventy-six percent of companies use contingent labor to enhance their workforce and close talent gaps, according to the ‘Definitive Guide to Building a Better Workforce’ report released by Adecco Staffing USA. The study surveyed 536 C-suite executives across the U.S. regarding the types of talent they need, the skills that are most difficult to find, how they’re using contingent labor and progressive recruiting methods to enhance their workforces, employee retention techniques and more.

The report found that “best-in-class” companies, a designation given to those with low turnover rates, sizable revenue growth and annual decreases in time to hire, are 44 percent more likely to increase the size of their temporary workforce in the next 12 to 24 months.

These figures coincide with similar findings by The Execu | Search Group. Its ‘2016 Hiring Outlook: Strategies for Adapting to a Candidate-Driven Market’ report found that 26 percent of hiring managers surveyed plan to increase hiring of temporary employees in 2016.

CareerBuilder’s annual job forecast also found that 47 percent of employers said they will add temporary or contract workers in 2016, up slightly from 46 percent last year. Of these employers, 58 percent plan to transition some temporary or contract workers into permanent roles in 2016.

Adecco’s report also looked at the continuing problem of talent shortages expected this year. It found that 80 percent of employers agree that the U.S. skills gap is a real challenge, and the report provides insights into how different companies conceptualize and address this gap in talent.

Other key findings include:

  • Best-in-class companies are 31 percent more likely to increase hiring in the coming year to help combat the skills gap;
  • 53 percent of survey respondents feel that shortages in the required skills available in the labor pool are the biggest HR challenge today;
  • Best-in-class companies are 22 percent more likely than other companies to increase training to ensure employees have the critical skills necessary for their roles.

With the U.S. unemployment rate at an eight-year low, competition is fierce for skilled talent. That means it’s more important than ever that companies resolve to invest in the recruitment and development of top talent and explore creative, progressive staffing solutions,” said Joyce Russell, Adecco Staffing USA president.

“Our guide shows that while many companies already invest in the professional development of their employees as well as depend on contingent labor, there is still opportunity for organizations to improve how they approach recruiting and retention,” said Ms. Russell.

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Other reports have also found that companies are having difficulties in finding quality talent.

ManpowerGroup’s ‘Talent Shortage Survey’ found that 32 percent of U.S. employers reported difficulties filling job vacancies due to talent shortages. Globally, the study found that the percentage of employers experiencing difficulties continues to rise, increasing from 36 percent in 2014 to 38 percent in 2015. When asked why they are struggling to fill certain jobs, employers cite a lack of applicants (33 percent), lack of experience (19 percent), and lack of technical competencies or hard skills (17 percent).

“Talent shortages are real and are not going away,” said Manpower North America SVP Kip Wright. “As the struggle to find the right talent continues, and candidates with in-demand skills get the upper hand, employers will be under pressure to position themselves as ‘talent destinations’ to attract the best workers that will drive their business forward.”

According to the latest ‘Recruiter Nation Survey’ released by Jobvite56 percent of recruiters cite the lack of available skilled talent as a key stumbling block in hiring. The report, which polled over 1,400 executive recruiting and human resources professionals, also found that 95 percent of recruiters anticipate equal or increased competition for talent over the next year.

A recently released hiring survey by DHI Group, Inc. found that 53 percent of hiring managers and recruiters say the inability to find qualified professionals was the key stumbling block for filling open positions at their respective companies.

“The recruiting environment for certain highly-skilled professionals is the toughest I’ve seen in nearly a decade, with companies jockeying for in-demand talent and candidates having their pick at ideal positions and compensation,” said Michael Durney, president and CEO of DHI Group. “In addition to bulking up budgets to pay desired candidates, companies have to consider ongoing sourcing and identifying professionals ahead of the creation of a specific job opening. Recruitment has to be more about relationship building today than ever before.”

Contributed by Scott A. Scanlon, Editor-in-Chief, Hunt Scanlon Media

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