Top 5 Staffing Issues in Organizations
If you're a business owner, hiring or project manager you're well aware - one of the biggest challenges you face has to do with people, and staffing in particular.
The trades industry is no stranger to this. With a massive shortage of skilled workers in the United States it's no wonder why there are issues with staffing.
Don’t Have Time to Read This Post? Get it Sent to Your Inbox
Here Are the Top 5 Staffing Issues in the United States
Scrambling to Find Qualified Labor
Employees can leave with little or no notice, causing massive project delays as you work to fill the gaps - but filling the gaps just isn't enough.
You can't rely on just anyone - and finding the right skilled labor can bring a host of other problems as you look down the barrel of time-to-completion and achieving project ROI.
Factor in workforce constraints in the US and replacing skilled labor becomes a daunting task. There are a few reasons for this constraint in the construction industry in particular:
- Increased federal spending on new projects and infrastructure
- Tighter government regulations on immigration
- An entire generation (baby boomers) leaving the workforce in droves
- Income growth not staying up to par
These conditions are creating staffing issues in the United States more evident, especially when a business has to quickly adapt to market needs, like a spike in demand for services.
Lost Productivity From Employee Turnover
Turnover rate is not just a threat to project completion - it can be a total nightmare.
Finding and keeping the right workers for your job is a critical part to any organization. Depending on the position the cost to on board and prep skilled labor can be in the tens of thousands of dollars - when these workers up and leave it can create a bottleneck with work deliverables.
But in addition your project running smoothly, any downtime as a result of lost labor directly affects an organization's revenue and the people that need to react, like owners and hiring managers.
A pivot here means that you need to drop everything you're doing to go on a hiring spree that includes the following:
- Posting job descriptions to job boards
- Sifting through resumes
- Conducting interviews
- Negotiating terms
- Training the new employee to get up-to-speed.
And if you need to replace multiple skilled positions at the same time it will put a massive strain on your hiring process.
But that's just the tip of the iceberg. Here are additional challenges that hiring managers have to overcome:
Inability to Attract the Right Candidates - you'd better make sure that your job descriptions are out of this world good. Competition for bringing in talent is increasing as a result of scarce labor. The US economy has 7.6 million unfilled jobs and a mere 6 million people looking to fill those positions.
Not Using Tech to Streamline the Hiring Process - are you manually looking through resumes to identify the candidates that have the right credentials and experience to fill your position? This can eat up hours of your day alone - new tech and AI has opened the door for seamless evaluation that can separate the good from the bad automatically.
Check out this post to find out what you need to know about temp agencies
Having an Inflexible Workforce
Here's the trick - can your organization handle full-time employees during low times and high times?
Staffing problems can exist simply because your organization has too many permanent positions on payroll. In fact, having these commitments are only emphasizing the dangers of a high turnover rate.
You've invested time and critical resources into these employees because you know how valuable their talents are - but can you get access to the same quality of work without the long term commitments?
Having temporary workers in your business can help alleviate the strain on your payroll and give you the flexibility to adapt to a shift in market needs.
Expanding Into Different Types of Projects
Having a niche that your organization specializes in is a major key to owning your industry and providing your clients with a ton of value - but odd jobs and projects that don't fit your scope of talents can leave money on the table for your competitors to snatch up.
Unfortunately your employees may not have the necessary skills to take on these jobs, and sourcing new talent quickly isn't easy.
Tax and Payroll Burdens on Company Coffers
Two things in life are said to be certain - and one of those is taxes...
Or is it?
You're no stranger to the Taxman taking his cut - but could there be a way for you to pass off a part of this burden to someone else? Temporary workers that come from a great staffing company can provide relief from tax obligations because they handle some of those for you.
A great staffing agency covers the following costs:
- FICA, FUTA and SUTA
- PTO and vacation pay
- Workers compensation
- Medical Insurance and Wellness Benefits
- Administrative costs like recruiting, onboarding, payroll, benefits management, garnishments and much more
Companies that learn how to navigate the challenges of meeting project ROI and profitability will have a distinct competitive advantage. Learning how to properly address these staffing challenges is the act of achieving that.
These common staffing issues don't need to be so common.
Using a Temp Agency to Solve Issues With Staffing
Businesses can easily address common staffing issues by using a reputable company to staff their short and long term contract positions.
Temporary staff provide a host of benefits including:
- Access to top quality employees at a fraction of full time positions
- Reduced burden on your training needs
- Access to employees that can help you pivot to new market opportunities
- Reduced company exposure to workers comp and tax liabilities
- Streamlined hiring process