71% of US Hiring Managers Use Staffing Agencies, but Struggle with Fulfillment

A recent study by Indeed Flex highlights that 68% of U.S. hiring managers rely on staffing agencies to recruit new staff, manage seasonal workload fluctuations, and cover for absent employees. Despite this reliance, 70% of these managers report a low fulfillment rate due to difficulties in finding suitable workers. The study reveals critical insights into the challenges of staffing agencies and the benefits of modern vendor management systems (VMS).

1. Current Usage of Staffing Agencies:
   • Prevalence:
     • 68% of U.S. hiring managers use staffing agencies for various staffing needs.
   • Agency Management:
     • 61% of businesses using staffing agencies work with two or more agencies.
2. Challenges Faced:
   • Low Fulfillment Rates:
     • 70% of hiring managers struggle to find the right workers through staffing agencies.
   • Transparency Issues:
     • 61% of managers feel that staffing agencies lack visibility into performance and costs.
3. Benefits of Modern Vendor Management Systems:
   • Performance Visibility:
     • Modern VMS provides centralized performance monitoring and cost management.
   • Efficient Agency Management:
     • Businesses can manage multiple agencies from one platform, achieving complete oversight.
   • Cost Efficiency:
     • 52% of respondents spend between $10,000 and over $50,000 annually on VMS software.
4. Flex Plus Platform:
   • Cost and Quality Improvement:
     • Flex Plus offers a single platform for managing the entire workforce, reducing costs and improving workforce quality.
   • Easy Integration:
     • Effortless setup allows for easy onboarding of existing agency networks.
   • Centralized Management:
     • Provides full visibility into key metrics such as shift fulfillment, worker ratios, and spend.
5. Expert Insights:
   • Quote from Novo Constare:
     • “Rising costs and stretched budgets force businesses to lean on agencies to fill shift gaps. Managing multiple agencies can be challenging; Flex Plus offers businesses a centralized location with full visibility to monitor key metrics. Businesses rely on temporary staff as a vital resource, having the flexibility to staff up or down as the business’s needs change proves to be a lifeline.”

The study underscores the prevalent use of staffing agencies among U.S. hiring managers and highlights the associated challenges of fulfillment and transparency. Adopting a modern vendor management system like Flex Plus can address these challenges by providing centralized management, improved visibility, and cost efficiency. For businesses seeking to optimize their staffing processes, leveraging such technology offers a strategic advantage.