The Role of Staffing Agencies in Bridging the Skills Gap

Allied OneSource • August 2, 2023

In today's world of work, the need for skilled employees continues to rise as different industries strive to meet the ever-changing demands of the market.

But even with constant hiring efforts, most organizations still find it difficult to employ qualified candidates with the specific skills they're searching for. Hiring managers often have difficulty bridging the skills gap present in their organization.

How exactly can companies resolve this gap that seems to be present in every industry? The best solution relies on outside sources: staffing agencies.

Skills Gap and its Impact

This refers to a situation where the skills and capabilities of candidates do not match those that companies need. This makes it difficult for hiring managers to find the right fit for their open positions.

According to a United States Chamber of Commerce study, the latest job market data reveals a concerning trend; while there are 6.8 million unemployed workers in the U.S., companies struggle to fill 8 million job openings.¹ This gap can hurt companies in various ways. Some examples of its negative impacts are as follows:

Lower Productivity Rates: When there are only a few qualified people working on a project, the amount of time needed to accomplish milestones lengthens.
Lower Quality Outputs: Some employees are still required to finish projects assigned to them despite not having the required skills for the tasks. This results in lower-quality products or services being offered.
Decrease in Profits: When production takes longer and creates an output that doesn't meet quality standards, the company's profits and reputation in the market can be significantly affected.

Let’s look at manufacturing. The National Association of Manufacturers reported that 67 percent of companies identified attracting and retaining a quality workforce as their biggest challenge—a problem expected to intensify as baby boomers retire.

As the skill gap widens, 80 percent of manufacturers are making efforts to improve recruitment and retention. Many are offering higher wages, better benefits, and overtime incentives. Over half are also introducing more flexible schedules for production workers to attract and keep top talent. ²

Following the same trend, the tech sector continues to play catch up with the evolving demands of the industry. In fact, a staggering 52 percent of tech leaders see workforce skills mismatch within their department, and 62 percent report that the gap is more apparent than it was a year ago.³

The reason for this gap in tech is that digital transformation is creating a big demand for skills like data analytics, business intelligence, reporting, data engineering, and database administration.

Staffing Services as the Key to Bridging the Skills Gap

Once your company recognizes the mismatch between the skills you need and the skills your employees possess, you can start exerting effort in bridging the skills gap present in your workforce.

This can be done in many ways but one of the most efficient solutions you can choose is to hire a staffing company to fill in the gaps for you.

There are many advantages to utilizing staffing services regardless of your industry. The following are seven detailed benefits of purchasing the aid of staffing agencies to solve the problems of the skills gap at work.

Company-Wide Skills Assessment

It’s impossible to provide solutions for problems that are unknown. Before a staffing company can help you, they first need to identify the gaps present in your organization.

This is done through a company-wide skills assessment which involves all your people. This is necessary so the staffing company you hired can gain valuable insights into the skills your employees have and the specific skills gap that needs to be filled.

Reduced Recruitment Costs

Hiring can be expensive, and a significant portion of the cost comes from the time professionals spend on tasks like screening applications and interviewing candidates. These are the soft costs that add up throughout the hiring process.

When you hire a staffing company, they will take over these duties resulting in fewer expenses related to recruitment. For example, there is no need to pay for advertisements to attract candidates since staffing agencies have a vast network that can be used for sourcing candidates with the desired skill sets.

Time-Efficient Recruitment

An in-person interview usually takes between 45 and 90 minutes. Now, think about the time spent interviewing multiple candidates who don’t even have all the skills you're looking for in the role. Remember that a delay in bridging skill gaps can result in poor performance and lower sales rates for companies. This means time is of the essence when finding potential hires to fill in the gap.

This is where staffing agencies shine. Thanks to their connections and expertise, they are well-known for their ability to streamline the recruitment process for more time-efficient and successful hiring.

Access to a Pre-Screened Candidate Pool

One of the reasons why staffing agencies are great at bridging the skills gap is that they have access to a wide talent pool filled with experts who already possess many valuable skills.

Instead of blindly looking through job applications and wondering which of them have the experiences you're looking for, you can simply rely on the network of pre-screened professionals your chosen staffing company has to offer. In this way, you have the assurance that the people who will join your company are truly the ones you need.

Accurate Employee Placement

Companies would be able to focus on more important tasks since their hired staffing agency will handle the responsibility of accurately filling positions with the right experts.

Using their in-depth knowledge about your industry and their years of experience in the staffing field, they can ensure that the people who join your organization can fill the skills gap your workforce has.

Develop Training Programs

Staffing solutions have other services to offer aside from recruitment. For example, they can also develop training programs for current employees to gain the skills the company needs. Through close collaboration with company leaders, staffing firms can design tailor-made programs that aim to equip employees with the necessary skills.

Whether in tech or in finance, your employees would be ready to meet the evolving demands of your business and bridge any existing skill gaps within your workforce.

Flexibility in Addressing Needs

The market in every industry around the world is an ever-changing landscape that encourages companies to remain adaptable to any situations that may come their way. This includes the constant shift in the demands for skills.

At one moment, you need a dozen employees who can use a specific programming language. The next thing you know, you're already using the latest framework and need people who can use it instead of the former. Situations like this make hiring staffing agencies worth it.

Staffing companies have the ability to offer flexibility to their clients. Whether you need to upskill, reskill, or down-skill your workforce to meet the current skill demand, you can do so with the help of your chosen staffing agencies.

How Remote Work Has Changed Staffing Needs

Remote work has completely changed the game. In fact, the average U.S. worker spends 3.8 days per month working from home, which is a lot higher than the 2.4 average in 2019.4 You’re no longer limited to hiring people who live nearby. Now, you can connect with skilled professionals from all over the world. This is great if you’ve been struggling to find someone with the exact skills you need.

But hiring for remote roles isn’t just about skills, it’s also about personality and work style. You need people who can stay motivated on their own and communicate well in a virtual setting. Staffing agencies are stepping up by focusing on these traits during the hiring process, so you can feel confident you’re getting someone who’ll thrive in a remote environment.

Allied OneSource is your key to bridging the skills gap in your company

As one of the oldest staffing and recruiting companies in the country, Allied OneSource is here to offer you timeless solutions to solve your workforce needs. We’ll help you fill any skills gap by connecting you with outstanding people to ensure your organization maintains a competitive edge.

Reach out today to learn more!

Last updated on February 26, 2025.

References

1. Melhorn, Stephanie Ferguson. “Understanding America’s Labor Shortage.” U.S. Chamber of Commerce, 13 Dec. 2024, www.uschamber.com/workforce/understanding-americas-labor-shortage.

2. National Association of Manufacturers. “2024 Second Quarter Manufacturers’ Outlook Survey - NAM.” NAM, 18 July 2024, nam.org/2024-second-quarter-manufacturers-outlook-survey.

3. "IT Talent Trends 2025: Moving Beyond the Traditional Building Blocks to Focus on the Talent Trends That Will Matter in 2025." InfoTech Research Group, www.infotech.com/research/ss/it-talent-trends-2025.

4. Jones, By Jeffrey M. “Remote Work Stable at Higher Rate Post-Pandemic.” Gallup.com, 16 Oct. 2024, news.gallup.com/poll/510785/remote-work-stable-higher-rate-post-pandemic.aspx.

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