Innovative Strategies Canadian Staffing Agencies Use to Tackle Labour Shortages

Table of Contents

Strategies Used To Tackle Labour Shortages

The labour shortage crisis shows no signs of abating in Canada. With over 1 million job vacancies across nearly every sector and an aging workforce, staffing agencies are having to get extremely creative and implement innovative solutions to meet employer demands. From exploring new talent pools to adopting advanced technology, here are the cutting-edge strategies the staffing industry is using to navigate this immense hiring challenge.

Upskilling and Reskilling Candidates at Scale

To dramatically expand the available talent pipeline, staffing firms are upskilling and reskilling job seekers on a large scale. They identify transferable skills then provide comprehensive training programs to quickly prepare individuals for in-demand roles across sectors like healthcare, skilled trades, technology, manufacturing, and more. Skills development courses on digital literacy, essential workplace skills, technical capabilities, and micro-credentialing help convert non-traditional candidates from other backgrounds. Virtual reality simulations and hands-on job trials assess candidates’ abilities before finalizing placements into open roles.

Dedicated staffing agencies have even launched their own internal upskilling academies and skills development divisions. This allows them to customize training based on employer needs, rapidly reskill workers, and get newly capable candidates placed faster. Some agencies focus on upskilling specific groups like youth, newcomers, or underrepresented populations to create new pathways into rewarding careers.

labour shortage

Focusing on Previously Underutilized Talent Pools

With far fewer available workers in the labour market, staffing agencies are going beyond traditional sourcing methods to tap into previously underutilized talent pools. They partner with immigrant employment services, Indigenous groups, return-to-work programs for new mothers and caregivers, at-risk youth initiatives, disability organizations, and other community partners. Inclusive and equitable hiring of these diverse candidate pools from all backgrounds expands their overall staffing reach.

Agencies are getting creative with targeted marketing, outreach events, training programs and employment partnerships to build relationships with these underleveraged talent segments. For example, working with nonprofit organizations and government programs focused on helping marginalized groups or underrepresented communities can open up new pipelines. The staffing firms essentially become employment catalysts, creating new career opportunities.

labour shortage

Adopting Intelligent Automation Technologies

To handle the increased volume of roles to fill with fewer recruiters, staffing companies are leveraging automation and artificial intelligence technologies to drive efficiency and scale operations. Chatbots using natural language processing conduct initial candidate screening conversations. Machine learning algorithms match open job requirements with candidate skill sets, experiences, and preferences. Robotic process automation handles high-volume repetitive tasks like data entry, scheduling, resume vetting, and more. Such workflow automation allows lean staffing teams to focus efforts on more strategic priorities.

Some agencies are even experimenting with using AI for funnel analytics to better predict candidate motivations, journeys and potential career trajectories. The data and insights help improve targeting, customize communications, and design better processes. Despite concerns around impersonal automation, staffing firms realize blending human and AI capabilities is key to scaling effectively.

labour shortage

Utilizing Flexible Remote and Hybrid Work Models

Rather than being limited to recruiting only locally, remote staffing solutions allow agencies to build virtual talent pools and source workers nationally and even internationally for certain roles. Entire positions or specific tasks are outsourced to remote workers, contractors, and gig workers located anywhere. Companies get the flexible labour they need on demand, while individuals gain more accessible employment opportunities to work from home or hybrid schedules.  

Virtual simulation environments assess candidates’ hard skills, soft skills like communication, problem-solving abilities and job fit prior to placement. For roles like customer service, technical support, language tutoring and more, remote staffing can expand geographic boundaries. This work-from-anywhere model is especially appealing for workers in rural areas or with mobility restrictions. Staffing firms leveraging remote staffing can put people to work quickly on a temporary or permanent basis.

labour shortage

Enhancing the Employee Value Proposition

To attract and retain quality workers amidst labour shortages, agencies recognize they must prioritize an outstanding overall employee value proposition and experience. Mobile apps, online employee portals, and efficient payroll and billing processes streamline logistics for workers. Opportunities for training, skills development, career pathing, mentorship and professional growth enhance the offering. Employee recognition, incentive and bonus programs, mental health and wellness resources, DEI initiatives, and work-life balance policies all boost engagement and retention. 

Some staffing firms have gone so far as to add unconventional perks like childcare assistance, paid health memberships, counselling services, commuter program discounts and more. Building an appealing talent brand and employee value proposition is critical for staffing agencies to position themselves as desirable employers and compete for labour amid shortages.

labour shortage
Scroll to Top
Let's Chat
Scan the code
Hello! Interested in inquiring about event staff?