ST. LOUIS — The so-called “Great Resignation” has seen millions quit their jobs.
In November 2021, 3% of workers quit, according to data from the U.S. Bureau of Labor Statistics, reflecting more than 4.5 million people. That matches the highest quit rate since the data was first recorded in 2000.
But for at least one industry the unprecedented labor market is leading to something of a boom.
The 25 biggest staffing firms in St. Louis last year reported a 34% increase in the number of people they placed into permanent jobs and an 11% increase in temporary placements, a sign of surging demand from corporate clients. As a result, revenue at those firms increased a collective 10%, according to Business Journal research.
Meanwhile, to keep up with the extra workflow, some firms have had to bolster their own staffs, with at least one saying it doubled the size of its workforce.
“The ‘Great Resignation’ is shifting the mindset of (recruiting),” said Cody Ballah, co-owner of Express Employment Professionals' office in Glen Carbon. “It’s been a gauntlet.”
Besides forcing increases in headcount, the rising demand is also changing the very way they do their jobs.
AGGRESSIVE, YET PASSIVE
Staffing firms are in the business of helping corporate clients recruit candidates to fill different types of open roles. Some staffing agencies focus on specific types of jobs — permanent positions or temporary positions, for example — while others focus on specific industries.
The labor shortage, however, led to a surge in demand from companies seeking those services.
The number of open positions brought to Ballah's office last year more than tripled from what they were prior to the COVID-19 pandemic, and the firm has increased its workforce by 10%, to 15 people.
Accounting Career Consultants and HR Career Consultants, located near Creve Coeur, saw demand for its services jump 50% in the past six months, a 100% increase since mid-2020. Technology Partners, a Chesterfield-based IT staffing firm, said it is experiencing a 30% increase in demand, prompting the firm to expand its team of recruiters by 200%, though it declined to disclose the exact number it employs.
The increased demand also means increased competition for talent, prompting staffing agencies to take new new approaches to attracting talent, while also drawing once-reluctant customers. Firms that shied away from staffing agencies in the past due to budget restrictions or internal recruiting capabilities — for example, small to midsize firms or nonprofits — are now leaning on staffing firms to bolster their recruiting.
Greg Nichols, president and chief operating officer of Technology Partners, said the demand for “co-sourcing,” or working together with firms’ existing HR or recruiting teams to bring in talent, is also growing rapidly.
Many clients are even nonexclusive, according to Ballah, meaning they're retaining multiple staffing agencies to fill open positions.
Click here for the full story.
