Hiring has never been a static process, but recent years have brought entirely new dynamics to the game. If you’re like many employers, you’ve probably switched up more than a few of your operational routines since 2020. Remote work, flexible schedules, digital workflows—these adjustments have redefined how businesses run. But has your workforce strategy kept up with these changes?
In the aftermath of the pandemic, employers are facing new challenges like a tight labor market—with unemployment rates expected to drop in 2025—and ongoing high demand for skilled professionals in sectors like tech, healthcare, and logistics. Alongside these trends, employers are also finding that they’re missing out on talented candidates or struggling to keep up with competitors. Sound familiar? If so, you might want to go back to basics and rethink your hiring strategy.
A changing labor market means changing workforce planning
Here’s where we’re at: The most recently published Bureau of Labor Statistics data lists an unemployment rate of just 4.1%, which shows us that most qualified candidates are already employed—making it harder for companies to find top talent through standard job postings alone. Complicating things further is a persistent skills gap: the US is short about two million skilled workers, especially in fields like tech, healthcare, and skilled trades. This means there’s often a disconnect between the skills employers need and those available in the current workforce. And when there are shortages like these, long hiring processes and conventional hiring methods allow talented potential employees to be snapped up by competitors. Put it all together, and it’s no wonder that companies are beginning to reevaluate their approach to hiring.
How to modernize your approach to workforce planning
With the pandemic changing the way we work and the way candidates approach job opportunities, it benefits employers to also begin to shift their workforce strategy. You might want to start by reassessing your position requirements with a fresh perspective. Are the roles that were vital a few years ago still just as essential to your operations today? In some cases, companies are finding that they can adapt by blending certain responsibilities or creating new roles that support growth and skill-building for existing employees. This can open doors for career development within your team while making your workforce more versatile and responsive.
Another way to rethink workforce structure is to consider job-sharing arrangements, where two employees can split the responsibilities of a full-time role. This setup can be especially valuable in positions that don’t need a traditional nine-to-five presence but benefit from diverse skill sets. Job sharing can also increase flexibility and support work-life balance, which is a win for both the company and employees.
And as you review your team’s structure, you may spot a few outdated job models. Ask yourself whether there are positions that could be consolidated, allowing your team to function more efficiently. Strategic role consolidation can help streamline operations, ensuring that each role is purposeful and aligned with current goals.
Finally, you may also want to explore the use of a temporary workforce that can provide flexibility for roles that don’t require full-time support, or for positions that vary based on seasonal or project-based demands. Even if you haven’t previously pursued temp-to-hire employees, it can set your team up to be more agile, efficient, and ready for whatever comes next.
Finding the best hiring strategy: Direct hire or temp-to-hire
When it comes to building a team, there’s more than one way to bring new talent on board. Traditionally, employers have largely relied on direct hire, but the current hiring landscape has led many companies to explore options like temporary and temp-to-hire. Deciding which path to take depends on your company’s needs—whether it’s filling a permanent role, covering a temporary demand spike, or testing out a position before making it permanent.
The benefits of choosing direct hire
There’s a reason companies often pursue direct hire. With a direct hire, you gain access to larger candidate pools, including people who might not be actively applying but are open to the right opportunity. And for certain positions, especially high-demand ones, direct hiring can speed up the recruitment process. This is especially true for roles with specialized skill requirements, where competition is fierce. In fields where skills are scarce, top staffing agencies—like Spherion—often recommend direct hire as the best route to secure high-demand talent.
Financially, direct hiring can be a wise choice in the long run. When you bring someone on board directly, you’re more likely to keep them long-term, reducing turnover costs that can add up with temporary hires. And with direct hire, you only pay one recruitment fee, with many staffing agencies offering to find a replacement candidate if the new hire doesn’t work out.
Overall, direct hires are a smart move for building a stable, long-term team. Because they’re invested in the role and often more committed to the company’s goals, direct hires tend to stay longer, helping you build a stronger, more consistent team.
Direct hire drawbacks
While direct hiring can be a great way to bring committed talent into your organization, it does come with a few challenges. First, because direct hire candidates tend to already be employed elsewhere, you may need to “sweeten the deal” to get them to leave the comfort of their current position. Competitive salaries are essential, but direct hire candidates—especially those being actively recruited—are often drawn to companies offering comprehensive benefits, work-life balance options, and a clear path for growth. Additionally, reviewing your onboarding and training process can help new hires feel valued and prepared from day one, boosting their engagement and making your offer stand out in a crowded market.
And second, direct hiring often takes longer, because more people tend to be involved in the decision-making process—which means more schedules to coordinate and, naturally, more back-and-forth. Fortunately, working with a staffing agency can help streamline this process, as the agency would handle setting up interviews, managing timelines, and keeping candidates informed..
That said, if you know that your company does have a longer hiring process, direct hire is usually the way to go. Most direct hire candidates are already employed and aren’t in a position to leave without an offer lined up. This means they’ll need more time to make the transition, and a longer hiring process on your end usually allows for more flexibility on their end. In any case, a staffing partner can help advise you on the best tactics to hire skilled, dedicated talent directly, even if the process takes a bit longer.
When does temp or temp-to-hire make sense?
Temp and temp-to-hire arrangements are ideal for companies that require flexibility in their workforce. If your business has seasonal peaks—like retail, hospitality, or logistics around the holidays—temporary workers allow you to scale up when demand is high and easily adjust down when things slow down. This flexible approach isn’t limited to seasonality, either. If you’re opening a new facility, ramping up production, or testing new markets, temp staff can give you the added manpower you need without the commitment of full-time hires.
Or you might find yourself facing an urgent hiring need, like if a critical employee suddenly leaves. Temporary workers can fill roles quickly, keeping your operations moving smoothly. With a staffing agency’s support, you can often have qualified candidates in place within days, letting you respond to pressing needs without delay.
Budget can also play a big role in making temp hiring a smart choice. Unlike direct hires that require a one-time hiring fee, temporary workers allow you to spread staffing costs over multiple months. This can be especially helpful if your company’s budget fluctuates throughout the year. Hiring temps gives you the agility to manage staffing expenses month by month, adapting to any budget adjustments without a long-term commitment.
Making staffing firms part of your 2025 hiring strategy
Whether you’re interested in direct hire or temp-to-hire, partnering with a staffing firm can be a game-changer. An objective, outside perspective can help you analyze your hiring practices in ways that are tough to do internally. Staffing experts often come equipped with tools like SWOT analysis (strengths, weaknesses, opportunities, and threats) to evaluate what’s working well and where there’s room for improvement—all without the attachment that “but we’ve always done it this way” thinking can create. This fresh view can help your business break free from old habits and identify new, better approaches to finding and retaining talent.
Another advantage of working with a staffing agency is their expertise in helping you balance the cost and benefits of an agency partnership. Staffing services can actually help you make better use of your hiring budget, allowing you to allocate resources more efficiently. Even if you plan to handle most hiring in-house, reserving a portion of your budget for outsourcing last-minute or hard-to-fill positions can take the pressure off—letting your staffing partner step in to find skilled candidates without pulling your in-house team away from other priorities.
Plus, when it comes to managing costs, having temporary employees can often be more economical than hiring full-time staff for certain roles. Temp workers provide flexibility for scaling up or down, allowing you to keep your core team lean while still meeting demand during peak times. With a staffing partner in your corner, you can create a hiring approach that’s cost-effective and tailored to fit your company’s specific needs.
Quick guide to rethinking your 2025 hiring strategy
Does all this have you feeling ready to revamp your hiring strategy? Consider this your quick-start guide for things to consider as you get started:
- Evaluate your current hiring models: Take a close look at what’s working—and what isn’t—in your hiring practices.
- Assess your true workforce needs: Determine the roles you genuinely need now, and consider how they may have shifted over time.
- Develop flexible hiring strategies: Embrace approaches like direct hire, temp, and temp-to-hire to keep your team agile.
- Create balanced staffing approaches: Strategically budget for in-house and outsourced hiring to cover last-minute roles or seasonal demand.
Adapting your workforce strategy doesn’t have to be overwhelming
It’s all about finding a balance in your hiring strategies. By blending different approaches, like direct hire, temp, and temp-to-hire, you can build a workforce that’s both flexible and effective. As we move closer to the new year, focus on developing a 2025 hiring strategy that aligns with your company’s goals and budget, while staying nimble enough to respond to changes. With the right plan in place, you’ll be equipped to attract the talent you need and navigate the evolving job market with confidence!