“Everything’s going to be fine”. We heard this phrase everywhere at the beginning of the pandemic. On the radio, on the windows of houses, in the grocery stores… sometimes even too much! However, when we look at the trends of the job market in 2022 and its impact on the recruitment industry, we must agree: “it’s going to be fine”!


Why am I so optimistic?


Let me explain.


To carry out this analysis, I looked at the job market as it stands today. My first observation is a confirmation: as expected, Covid-19 is leaving deep traces in the economy.


Even as Canada officially enters the 6th wave, the labour market is gradually recovering. And it is no exaggeration to say that nothing will ever be the same again. The pandemic has brought about or accelerated many changes. This was already evident at the end of last year in certain sectors: did you read our post on the most sought-after jobs in 2022?


With so much change, many people look to the year ahead with questions, if not concerns. Staffing agencies can benefit from thinking about what is on the horizon. This is with a view to the role that recruiters will play in the months and years ahead.


Looking at employment trends, three major trends can be identified:


  • Temporary staffing agencies have an important card to play.
  • New hybrid work models are becoming a must.
  • The pandemic has drastically accelerated the digital transformation of companies.


What is there to be optimistic about for employment agencies?


2020 was a difficult year for temporary and permanent staffing agencies. In America, two out of five agencies experienced year-on-year revenue losses.


According to a survey of 4,000 US temporary staffing agencies conducted earlier this year, 2021 represented a tremendous rebound for most agencies. Three out of five respondents reported an increase in revenue in 2021 and only one in seven reported year-over-year losses.


This rebound can be explained by this other study, conducted by Manpower earlier this year. Among other things, it found that 69% of employers are unable to recruit the skilled staff they need due to retirements, reduced international mobility and a falling birth rate. Faced with a talent shortage, employers are having to reinvent themselves to attract and retain the best skills. To do this, they call on the services of recruitment specialists.


Training: a major challenge for companies, but a pitfall for agencies?


It is no well-kept secret that new jobs require new skills. Companies must therefore fill this skills gap by regularly training their employees. According to a study by the research institute Gartner, 58% of employees across all sectors will need new skills to do their jobs in the world of tomorrow.


For example, Amazon recently announced plans to train 300,000 employees worldwide by 2025. More than $1.2 billion will be invested in various training initiatives, including free tuition for front-line workers.


With such improvements in on-the-job training, skill requirements for new employees are likely to be lowered. Of course, this widens the pool of candidates for recruiters, but they will also have to consider that more recruitment will take place internally. This will reduce the need for external candidates.


The move towards ‘on-demand’ recruitment favours the agency model


The financial stability of many companies remains delicate, and it is difficult for employers to plan or commit to long-term staffing. Instead, there is likely to be a continuing shift towards ‘on-demand’ recruitment.


Companies will react as late as possible to constantly changing business conditions. So, when the time comes, they will have to act quickly. This will usually require the use of temporary or permanent staffing agencies, which can use their extensive networks to place candidates at short notice.


What is the impact of new working patterns on recruitment?


During the various confinements, workers have developed new habits that they do not intend to change: working from home, flexible working hours, autonomy, etc.


Employees have experienced a more balanced family life during the confinements and do not want to give it up. They demand more flexibility, more independence, attractive remuneration and good working conditions. The company must therefore accommodate them. This means giving them more freedom.


In addition to flexible working hours, it is the whole corporate culture that is put forward. A company’s values, which are displayed on social networks, must be unifying and up to date. In concrete terms, this means that the company must be involved in a societal approach, for example in favour of the environment. The pandemic has forced companies to question their identity.


Greater emphasis on project-based work?


Another trend that is expected to accelerate in 2022 is the development of project-based work. The opening up of remote working allows talent to be hired from anywhere, especially specialist talent. Employers have been able to assemble teams on a project-specific basis, without either party having to commit to long-term employment.


This is good news for recruiters, as the need for new talent on an ongoing basis will keep them in high demand. It also means that recruiters need to use the latest technology, such as an applicant tracking system and customer relationship management (CRM) software, to identify the most qualified candidates for relevant vacancies and to fill these positions as quickly and efficiently as possible.


How has the pandemic accelerated the digital transformation of businesses?


The pandemic has led to a forced acceleration of the digital transformation of companies. The aim is to meet the demand for collaborative working tools that can be used remotely. More than 80% of employers have thus accelerated their digitalisation.


The latter allows for an increase in productivity and this is what allows for an increase in salaries.


But does this also apply to temporary staffing agencies?




Last year saw a dramatic increase in the number of temporary and permanent staffing agencies adopting a digital transformation strategy. 84% of global staffing agencies now have a digital transformation strategy in place, up from 43% a year ago. Digital transformation adoption has more than tripled since 2019, when only 25% of agencies reported the presence of a digital transformation strategy.


How can staffing agencies benefit from this?


By leveraging data to match job vacancies with ideal candidates.


Indeed, every year, data plays an increasingly important role in all aspects of work.


Applicant tracking software has already become a standard tool in many organisations. Many staffing software, such as PRIM Logix, offer detailed data tracking and analysis that can transform the way recruiters and temp agencies operate.


This trend in the workplace will continue to grow. Especially as these tools evolve to offer more time-saving features and functions.


Make sure your recruitment agency can keep up with the job market trends of 2022. Contact us to find out how PRIM Logix can make recruitment easier, faster, and more relaxed.


Regularly find on our blog information and advice on the latest news from employment agencies and new technologies. Also, join us on social media to stay up to date with our latest posts and share your experiences. Finally, subscribe to our newsletter and don’t miss any news.

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