How can temp recruitment help solve the skills crisis?
According to research from Oxford Learning College, an estimated 20% of the workforce in the UK will be significantly underskilled for their jobs by 2030. That’s approximately 6.5 million people!
And while these numbers are staggering, they also pose an interesting opportunity for temp and contractor agencies. Read on to find out how your work can help ease this skills gap.
The skills challenge right now
Over the past few years, we’ve seen rapid digital advancements and changes in how companies operate, resulting in a sharp increase in demand for skilled workers. Fields like warehousing and manufacturing have been especially impacted, but we’ve also seen the rise of the use of AI in office based roles too. Workflows and priorities are shifting.
As a result, many companies are struggling to fill the changing needs of their business, leading to lost productivity, increased recruitment costs, and delayed projects.
Temp workers have always been around, and there has always been a demand for short-term contingent staff. But more recently, businesses are starting to lean on the flexibility and specialised nature of temp workers to help solve their longer-term skills shortages.
The opportunity for temp recruitment agencies
For temp recruiters, the skills crisis presents a unique opportunity. Here’s how you can leverage your network and expertise to your advantage
- Expand your client base. Attract a broader clientele by showcasing your ability to provide skilled temp workers to address immediate needs. This is especially relevant for temp recruiters specialising in fields like IT, healthcare, or seasonal labour.
- Enhanced reputation. A solid track record of fulfilling urgent skill demands can make your agency the go-to choice for companies facing workforce challenges.
- Offer full-service solutions. You can differentiate yourself by offering comprehensive solutions to your clients and candidates. We remove the admin aspect of your role so you can concentrate on providing value and consultation to your clients.
Outsourcing: the key to agency efficiency
If you’ve read this far and are thinking, “This sounds interesting, but what if I can’t keep up myself?” we have you covered! As a temp recruiter, your expertise lies in building excellent relationships with workers and nurturing connections with clients. The administrative load of managing temporary workers is often a challenge.
This is where outsourcing to a recruitment funding provider that offers back office services can make a significant difference to the way you do business.
For starters, temp agencies can face cash flow challenges due to the gap between paying temp workers and receiving payments from clients. A recruitment financing partner can help bridge this gap, providing you with the necessary working capital to cover expenses while waiting for client payments.
Payroll is another headache for agencies handling a fluctuating workforce. The process can be complex and time-consuming, which is why outsourcing this to a specialist is a good idea. You’ll not only be able to save time and ensure accurate payments, but you’ll also reduce the risk of compliance issues.
Credit control is a challenge for any business, especially when dealing with a variety of clients and stakeholders. Using a factoring service can help you maintain a healthy cash flow and minimise financial risk.
Read more about how we protect your reputation in the market whilst delivering a top-tier service here.
It can be challenging to hand these critical tasks over to an external service provider. After all, your reputation and business are at stake!
Ultimately, though, by getting this kind of support from a trusted partner, you can redirect your time and resources toward your core activities – building and maintaining your business.
This strategic move can streamline operations, improve cash flow, and allow you to concentrate on delivering top-notch service to your clients.
As the skills gap continues to challenge businesses, temp recruitment agencies, armed with the right strategies and support, can not only solve this crisis but also position themselves as essential partners in today’s dynamic job market.
A solution like Back Office Support Services can help you keep up with growing demand.
Ready to make the most of this opportunity? Give us a call on 01260 545 425 or click the link opposite and let’s get started!
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