Can you feel it? I know you can. I’ve talked to lots of staffing leaders over the past few months. They all say the same thing:
The industry is changing. Again. At the speed of light.
No matter how long you’ve been in staffing (this is my 38th year), it’s as if someone keeps moving the goal posts just when we were ready to score.
There’s always been pressure in this business. But now it seems to be different…
Louder.
Heavier.
Faster.
The ‘normal’ ways aren’t working like they used to. And the issues that used to be slight annoyances are now full-blown, top-of-mind, keep-you-awake-at-night problems.
What are they? Glad you asked. I’ll give you my top ten.
1. The talent well is broken.
You’re all fishing in the same small pond (like always), but the fish aren’t biting. Candidates have options. Leverage. Higher expectations. And if you don’t move quickly with a fast, clear, and compelling process, forget about it. They’re gone.
2. Ghosting is the new normal.
You make the offer. They accept. They nod during orientation. Then…POOF. No show on day one. No call. No text. Yes, there’s always been an element of this, but it was more the exception. Now it’s the rule.
3. Clients demand faster, cheaper, and better.
We always used to respond that they can have two of the three. That no longer flies. Now they want (and expect) all three at the same time. They say they want a ‘partner,’ but they really want your best service – with a discount.
4. Recruiter burnout is real.
Your ops team is tired. Metrics, calls, fill ratios, angry voicemails — they all add up. And when your top biller walks out the door, it’s not just an HR issue, it’s a revenue crisis.
5. Your differentiator isn’t differentiating.
Yes, you may have the ‘best customer service.’ Or, you may have a ‘deeper candidate pipeline,’ but that’s not enough to set yourself apart.
6. You are ahead/behind in tech.
You’ve over-invested in technology, and no one is using it, or not using it to its full potential. Or, you haven’t invested enough and your competitors are lapping you with automation, AI, and better engagement tools.
7. Margins are shrinking.
Are pay rates going down? No. What about insurance and benefits costs? No. Subscriptions? Nope. Despite that, clients want 2025 pay rates and 2019 bill rates.
8. Compliance is a minefield.
Wage transparency. Sick time laws. Immigration issues. New regulations on staffing. Whenever you think you have a handle on it, a new rule hits your inbox. The cost of getting it wrong? Huge.
9. Turnover!
Good internal staff is hard to find and even harder to keep. If you’re training new employees while simultaneously losing veterans, it’s a sign that something needs immediate attention.
10. The economy feels like a roller coaster at the fair.
Yesterday it was expanding. Today, it’s on life support. Tomorrow – who knows? Clients are hiring - until they’re not. Planning is little more than guesswork.
So, what’s the bottom line here? It’s not your imagination. This is the reality of staffing in 2025.
But pretending that nothing is wrong is not leadership. That’s denial. The staffing firms that thrive in this new (un)normal won’t be the ones that just ‘survive.’ No, they will be the ones who face these ten challenges head-on, adapt, and stay ahead of the oncoming tsunami.
Staffing is still a people business. It always will be. Start there and the path will reveal itself to you.