U.S. businesses struggle to find quality temporary workers: Indeed Flex study

TEXAS, UNITED STATES — A recent study by Indeed Flex reveals ongoing difficulties for U.S. businesses in securing quality temporary workers. 

The research indicates that 70% of hiring managers experience low fulfillment rates when attempting to fill temporary positions, despite 68% of them utilizing staffing agencies for recruitment purposes. These agencies are primarily used to manage seasonal workload fluctuations and cover for absent permanent employees.

Transparency issues with staffing agencies

The study highlights that 61% of U.S. businesses working with staffing agencies engage with two or more such agencies. However, transparency remains a significant concern, as 61% of hiring managers also believe these agencies lack visibility into performance and costs. 

This opacity complicates the management of temporary staffing needs, often resulting in inefficiencies and increased costs.

Indeed Flex CEO and Co-founder Novo Constare said, “Rising costs and stretched budgets force businesses to lean on agencies to fill shift gaps. Managing multiple agencies can be challenging.”

Vendor management systems offer solutions

To address these challenges, businesses are increasingly adopting modern vendor management systems (VMS) that offer comprehensive oversight and management capabilities. These systems provide performance visibility and enable the management of multiple agencies from a single platform. The study reports that 52% of respondents spend between $10,000 and over $50,000 annually on VMS software.

Constare emphasized the benefits of such systems, adding that “businesses rely on temporary staff as a vital resource, having the flexibility to staff up or down as the business’s needs change proves to be a lifeline.”

Offshore outsourcing as a strategic alternative

Given the challenges in finding quality temporary workers domestically, some businesses are considering offshore outsourcing as a viable alternative. By tapping into a global talent pool, companies can mitigate the risks associated with local staffing shortages and potentially reduce costs. Offshore outsourcing provides flexibility and access to specialized skills that may not be readily available in the U.S. market.

Offshore outsourcing also offers the following advantages:

Cost efficiency

Offshore outsourcing can dramatically reduce labor costs by tapping into countries with lower wages and operating expenses. This results in substantial savings on labor and overhead costs, improving profitability.

Access to global talent

By outsourcing to countries with specialized skills, businesses can access a diverse range of expertise that may not be readily available domestically. This can enhance innovation and allow companies to undertake projects requiring specific knowledge.

24/7 operations

Leveraging time zone differences, offshore outsourcing enables continuous operations, enhancing customer support and reducing turnaround times.

As U.S. businesses continue to grapple with the shortage of quality temporary workers, leveraging advanced management systems and exploring offshore outsourcing options may offer effective solutions. 

These strategies can help companies maintain operational efficiency and adapt to changing workforce needs, ensuring their competitiveness in a challenging economic landscape.