Staffing firms can be a hiring manager’s best ally during times of uncertainty or tight labor market – both of which we are experiencing in 2018.
Low unemployment is making it more challenging for organizations to fill open job requisitions, and the IT department is not immune. In fact, the highly skilled labor market is experiencing a trifecta: shortage of skilled candidates, higher salaries and an increase in churn.
Combine this perfect storm with regulatory changes and companies looking to fill technical roles are turning to staffing firms to manage in times of uncertainty. Temporary staffing is a good way for companies to fill a short-term need, with an eye toward longer term employment.
“As we see higher churn rates, we expect to see an increase in staffing demand,“ says Michelle Kirkpatrick, principal, strategic staffing for Nuvalo. As the labor supply and demand continue to be imbalanced, we seen an increase in demand for contract or contract-to-permanent employees with clients that need to fill vacated posts.
In addition, the role of training temporary employees is less task-oriented and becoming more about learning the industry and its tools. Many of our clients come to us with a specific need to fill knowledge gaps such as cloud manager. In times when there are not enough qualified candidates, Nuvalo has the resources to recommend alternative solutions such as negotiating the best managed cloud solution provider.
Legislative uncertainty can impact many companies’ hiring processes. For example, H1B Visas under the current administration are more difficult to obtain. As the administration continues to undertake major regulation rollbacks in other areas, be sure your staffing firm is carefully monitoring changes that could affect your organization’s hiring practices. For example, legislation affecting immigration will continue to be a hot topic in the technology sector.
To summarize, the confluence of shortages in the skilled labor and an uncertain regulatory environment is making hiring more difficult. In these challenging times, hiring managers are turning to staffing agencies that can handle temporary and permanent placements of candidates in highly specialized areas of IT, such as cloud and security.