The Future of Industrial Hiring in the Twin Cities: Weathering the Demographic Storm

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Hiring managers in the Twin Cities’ manufacturing and logistics sectors are facing a perfect storm of workforce challenges. Unemployment in Minnesota remains low, yet finding qualified workers for factories, warehouses, and trucking fleets has never been harder. What’s driving this labor crunch? A new report from Lightcast – “The Rising Storm” – warns of a looming demographic drought that is poised to reshape the talent pool. Baby Boomers are retiring en masse, younger workers are entering the labor force more slowly, and participation among prime-age men is on the decline.

This post will break down what these trends mean for industrial employers in Minneapolis–St. Paul and, crucially, how you can prepare. We’ll explore key takeaways from Lightcast’s report – from the silver tsunami of retirements to falling labor participation – and discuss actionable strategies to adapt and thrive in this new era of talent scarcity.

1. A Coming Demographic Storm in the Workforce

Demographic changes are brewing a labor shortage unlike anything we’ve seen before. The Baby Boomer generation – an enormous cohort of 76 million Americans – is now at retirement’s doorstep, which means millions of workers will exit the workforce in the coming decade. In fact, since 2020 over 5 million U.S. workers have left the labor force, and 80% of them were over age 55. This “silver tsunami” of retirements has been building for years, but the pandemic accelerated its landfall. As Boomers bow out, fewer younger workers are available to replace them – a structural talent gap that won’t be filled simply by the next graduating class.

Compounding the issue, prime working-age men (ages 25–54) are participating in the labor force at much lower rates than past generations. In 1980, about 94% of American men in their prime working years were employed or seeking work; today that figure is around 89%. It may not sound like a big drop, but it represents roughly 2.6 million prime-age men who would have been working under past norms but are now sitting on the sidelines. Unlike their fathers and grandfathers, many Gen X, Millennial, and Gen Z men are opting out of the workforce entirely. Some are going back to school or staying home with family, but others have been sidelined by less benign factors. Tragically, issues like substance abuse and incarceration have taken a toll on this demographic, disproportionately removing prime-age men from the labor market. The bottom line is that the traditional backbone of the industrial workforce – men in the prime of life – isn’t as large or as available as it used to be.

2. Why Twin Cities Industrial Employers Should Care

National trends can feel abstract, but these shifts are very real for Minnesota and the Twin Cities region. Minnesota’s light industrial sector is at a crossroads – the state is already grappling with a significant workforce shortage as a direct consequence of long-term demographic shifts. An aging population, declining birth rates, and lower immigration are creating a labor gap that COVID-19 only exacerbated. As Baby Boomers retire, Minnesota’s active workforce is dwindling, and younger generations are not entering fast enough to fill the void. Consider that by 2030, all Baby Boomers will be at least 65 years old and exiting their careers, which will cause the share of Minnesota’s population that is of working age to plummet to a historic low (Minnesota’s Vanishing Workforce | Lightcast). In other words, a smaller proportion of Minnesotans will be available to work than at any time in modern memory – a recipe for a labor crunch in every industry, especially those that rely on physical work and skilled trades.

For Twin Cities manufacturers and logistics companies, these demographic headwinds translate into daily operational headaches. It’s already common to see unfilled job postings for welders, forklift operators, and CDL drivers. As one local report noted, Minnesota’s labor force participation decline amounts to a loss of roughly 325,000 workers, a drop more pronounced than the national average. Statewide, there’s an estimated labor force gap of 168,000 people as of mid-2023 – meaning employers have tens of thousands more positions to fill than there are workers to fill them. In practical terms, factories may struggle to run second or third shifts because they simply can’t find enough staff. Indeed, if companies can’t fill all their skilled trade roles, some may be forced to cut back on orders or production despite strong demand. The Twin Cities region, with its concentration of manufacturing (from medical devices to food processing) and transportation hubs, is feeling these strains acutely.

The demographic storm isn’t looming on some far horizon – it’s arriving now. Lightcast’s analysis suggests the most acute worker shortages will hit within the next five years. For Minnesota, which still hasn’t regained all the workers it lost during 2020, this is a wake-up call. Industrial employers here will be among the first to feel the crunch, since many of the roles in manufacturing, warehousing, and trucking skew older in their current workforce and rely heavily on that soon-to-retire talent pool. But while the forecast may sound dire, there are concrete steps Twin Cities businesses can take to prepare and adapt. Just as you would secure your facility ahead of a literal storm, now is the time to shore up your workforce strategy for the gale-force demographic winds ahead.

3. Preparing for the Storm: Strategies for Future-Ready Hiring

No single solution will completely defuse the coming labor shortage – we can’t stop people from aging, and macro trends like low birth rates are outside any one company’s control. However, HR leaders are not powerless. By thinking creatively and taking proactive measures, manufacturing and logistics employers can mitigate the impact and continue to thrive. Below are several inventive and actionable strategies to consider, with an emphasis on partnerships and talent strategies that have proven effective in the Twin Cities and beyond:

1. Partner with Staffing Services for Talent Agility:

One immediate way to broaden your hiring reach is to leverage the expertise of industrial staffing agencies. In a tight labor market, partnering with a staffing agency is a strategic move to address hiring challenges and build a robust workforce. Staffing firms in Minneapolis have deep networks of qualified candidates – from machinists to warehouse pickers – and can connect you with talent that isn’t finding its way to your job postings. They also offer flexibility: through temporary and temp-to-hire placements, you can scale your workforce up or down to meet demand without long-term risk. A good staffing partner will even help dispel misconceptions about manufacturing jobs and market your roles more attractively. In short, you don’t have to tackle this labor storm alone – creative partnerships with staffing services can extend your recruiting reach and bring in high-quality talent when and where you need it.

2. Retain and Re-engage Older Workers:

With so many Boomers retiring, find ways to slow the “brain drain” of experienced talent. Many seasoned employees would continue working longer if given flexible or part-time options. Consider implementing phased retirement programs, reduced-hour schedules, or consulting roles that allow impending retirees to downshift instead of depart completely. Keeping even a fraction of older workers on board can soften the impact of the Boomer retirement wave, providing critical mentorship to younger employees and preserving institutional knowledge. In the Twin Cities, some manufacturers are inviting recent retirees back as trainers or on-call experts during busy periods. By accommodating the needs of older workers – whether it’s flex hours, less physical tasks, or tapping into their expertise on a project basis – you can extend their contributions and mitigate the loss of skills while you cultivate new talent to replace them.

3. Expand and Diversify Your Talent Pool:

When traditional labor sources shrink, it’s time to get creative and inclusive in recruiting. There are sizeable untapped talent pools that industrial employers can invite into the fold. For example, women remain significantly underrepresented in manufacturing and trade roles – their share of the skilled trades workforce is still in the single digits (The critical demand for trade skills in the US | McKinsey). Making a concerted effort to recruit and support women (through apprenticeships, on-the-job training, and female-friendly work policies) can open up a new pipeline of capable workers. The same goes for communities of color and immigrant populations, who are a growing segment of the Twin Cities labor force. Remember that all net workforce growth since 2019 has come from foreign-born workers in the U.S. – tapping into immigrant talent is not only a diversity effort but a practical necessity. Employers can partner with local non-profits, cultural community centers, or language training programs to attract immigrant and refugee workers into logistics and manufacturing roles. Additionally, consider second-chance hiring initiatives: some prime-age men have been sidelined due to past incarceration or recovery from addiction. By working with workforce re-entry programs, you might find loyal, hard-working employees eager for an opportunity. Broadening your hiring lens in these ways not only helps fill jobs, it also fosters a more inclusive workplace – a win-win that can improve your company culture and reputation.

4. Invest in Training and Upskilling:

In a tight labor market, developing talent internally becomes crucial. You may not find a fully qualified CNC machinist or logistics supervisor for every open role, but you can hire entry-level candidates with the right attitude and train them up. Partner with local technical colleges, trade schools, and union apprenticeship programs to build a pipeline of skilled workers. Many Twin Cities employers are forging relationships with high school vocational programs and community colleges (like Dunwoody College of Technology or Hennepin Tech) to identify students interested in manufacturing careers and offer internships or apprenticeships. Engaging educational institutions ensures curricula align with your skill needs – for example, a curriculum that teaches the specific welding techniques or warehouse management software your company uses. Additionally, don’t overlook training your existing staff. Offer upskilling opportunities (such as tuition reimbursement, certification programs, or on-site workshops) to help your employees grow into more advanced positions. Not only does this fill higher-skill roles from within, it also boosts retention – people are more likely to stay if they see a path for career advancement. By investing in workforce development now, you “grow your own” talent for the future and reduce your dependence on an ever-shrinking external labor market.

5. Provide Competitive Pay and a Positive Culture:

In an era of labor scarcity, retention is the new recruitment. It’s far more cost-effective to keep the employees you have than to constantly hire and train new ones. That means ensuring your compensation and work environment are truly competitive. If your wages have fallen a bit behind the market, now is the time to correct that – otherwise you risk losing workers to the employer down the road. Studies show that while no company should wildly overspend on labor, paying below-market rates is often a false economy: any short-term savings are offset by higher turnover and difficulty hiring, making it more expensive in the long run. Benchmark salaries for critical roles (production leads, mechanics, drivers, etc.) and adjust so that your offers are attractive. Beyond pay, think about benefits that can set you apart – maybe flexible scheduling options, childcare support, or extra PTO – as well as non-monetary perks like recognition programs and a strong safety culture. Front-line industrial jobs have a reputation for being demanding; by emphasizing workplace safety, respect, and opportunities for feedback, you can make your company an employer of choice. A positive, inclusive culture where employees feel valued will naturally improve retention and word-of-mouth recruitment. In a tight labor market, taking care of your people is one of the best strategies to ensure you have the talent you need.

6. Embrace Smart Automation (But Don’t Rely on It Alone):

Lastly, consider how technology can ease the strain – but temper expectations. Incremental automation and process improvements in manufacturing and logistics can boost productivity, helping each available worker accomplish more. For instance, some warehouses in the Twin Cities are implementing co-bots (collaborative robots) to assist human workers in picking and packing, and manufacturers are investing in more advanced machinery that can reduce manual labor on the production line. Embracing such labor-saving technologies can absolutely help fill the gap, especially for repetitive or strenuous tasks. However, it’s important to remember that automation is still years away from making a meaningful dent in the workforce shortage. We can’t count on robots to bail us out in the near term – the technology simply isn’t advancing fast enough to replace millions of workers by the end of the decade. So, view automation as one tool in your toolbox for efficiency, but maintain focus on human-centric solutions for your core staffing needs. The most successful companies will find the right balance: using automation where it can genuinely augment human labor, while simultaneously doubling down on creative human capital strategies like the ones above.

Looking Ahead: Thriving Amid the Talent Drought

The demographic challenges facing Twin Cities employers are certainly daunting – a “perfect storm” of retiring Boomers, a smaller upcoming workforce, and shifting labor participation. Yet, knowing what is coming enables us to respond, not just react. By understanding the trends and taking action now, HR leaders can ensure their organizations are not only prepared to weather the storm but can even find opportunity in it. The Twin Cities has a proud history of innovation and resilience, and that extends to how our businesses build their teams.

Moving forward, success in industrial hiring will belong to those who adapt with creativity and flexibility. This means forging partnerships – whether with staffing agencies, educational institutions, or community groups – and breaking out of old mindsets about who the “ideal” worker is. It means rethinking schedules, career paths, and job requirements to let more people into the workforce, as opposed to the old paradigm of weeding people out. The companies that thrive will be those that cast the widest net for talent and invest in developing that talent for the long haul.

HR professionals in manufacturing and logistics should feel empowered by the fact that there are solutions at hand. From tapping new labor pools to enhancing training and retention, you have many levers to pull to mitigate the talent crunch. The coming years will require innovation in how we hire and manage people, much like past decades required innovation in how we build products or move goods. The good news is that every step you take to become more future-ready – whether it’s mentoring an apprentice, raising a wage, or partnering with a staffing firm to find that extra crew for peak season – is a step toward securing your company’s success in the face of demographic change.

The storm may be on the horizon, but with the right preparation, Twin Cities industrial employers can navigate the rough waters ahead. By staying informed and proactive, you’ll not only survive the labor shortages of the late 2020s – you’ll position your organization to thrive amid them, with a strong, adaptable workforce that’s ready for whatever the future holds. View our services to see how we can help you prepare.

5 Effective Ways to Incentivize Contingent Workers

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Keeping your workforce motivated and productive is key to the success of any business. However, when dealing with contingent workers, traditional incentive programs often fall flat. Why? Because their temporary employment status means they view incentives differently than your full-time staff.

Incentivizing your temporary staff is important becuase it shows recognition for their contributions, builds loyalty during their tenure, and creates a sense of belonging. For a hiring manager or HR professional, the goal is to provide rewards that are meaningful, achievable within a limited timeline, and aligned with their professional interests.

Doing so can significantly boost morale, enhance productivity, and create a positive workplace experience during their time with your company.

If you are looking for simple and effective ways to incentivize your contingent workers, here are a few options to get you started:

1. Performance-Based Bonuses

One incentive that speaks to nearly everyone is bonuses. You can tie this incentive to performance, allowing the best and brightest to benefit from their level of contribution, and give everyone a goal to work toward. When designing your bonus program, you need to select timetables that are achievable by short-term employees. Additionally, make sure the targets are appropriate based on the level of the job and clearly define them using metrics to ensure favoritism doesn’t come into play.

2. Offer Paid Time Off

One common challenge for contingent workers is limited access to paid time off (PTO). Now with Earned Sick and Safe Time (ESST), wokers can accure earned time off depending on hours worked. This time off can make work-life balance easier to achieve, since your contingent workers don’t have to make a financial sacrifice to handle must-do tasks in their personal lives. Plus, it shows that you appreciate their effort and dedication, even if don’t remain with your company as a permanent employee.

3. Development Opportunities

Many contingent workers accept short-term assignments in hopes of gaining valuable experience that can help them move forward in their career. If you have the opportunity to help them grow their skills, consider offering this as an incentive. Anything from formal courses to conferences to cross-training options can be enticing, particularly if they relate to their preferred field. When you invest in their career growth, contingent workers become more motivated to deliver high-quality work during their time with your company.

4. Small, Thoughtful Gifts

Sometimes, the smallest gestures can have the biggest impact. Small gifts tied to project milestones or achievements can be a fun and effective way to show appreciation. Gift cards can be a great option, particularly to commonly used stores like gas and grocery or restaurants. Alternatively, consider providing a catered lunch to your employees as a form of celebration. Most people appreciate free food, so it can be an easy incentive to offer. Just make sure you provide a range of options, ensuring anyone with dietary restrictions can take part in the festivities. These simple acts of appreciation can create a sense of recognition and camaraderie, encouraging contingent workers to stay engaged and motivated.

5. Highlight Teamwork and Recognition

Everyone appreciates being acknowledged for their work, and contingent employees are no exception. While they may be with your company for a limited time, it’s still important to ensure they feel like a valued part of the team. Publicly recognizing contingent workers during team meetings or through internal communication channels is a great way to show appreciation for their efforts. Another thoughtful gesture is providing certificates of achievement or personalized notes to acknowledge their contributions, leaving a lasting positive impression. Additionally, offering glowing referral letters can serve as both an incentive and a valuable boost to their career growth. Overall, recognition programs cost little to implement but can go a long way in boosting motivation, morale, and trust.

Final Thoughts: Create a Culture of Appreciation

Motivating your contingent workers doesn’t have to be complicated or costly. Incentives such as bonuses, PTO, development opportunities, and recognition programs can make a world of difference. By offering tailored incentives that meet the unique needs of contingent workers, you’re not only encouraging great performance but also fostering a culture of respect and appreciation within your organization.

Need support finding skilled contingent workers who will make an impact? Our recruitment experts are here to connect you with top-tier talent, so you can build a team that drives your business forward. View our services to get started.

Celebrating 2025 Great Workplaces in Minnesota

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Looking for a workplace that values employee well-being, inclusivity, and innovation?

We are thrilled to announce that Award Staffing been named one of Minnesota’s “2025 Great Workplaces” by Twin Cities Business! This honor underscores our commitment to fostering an exceptional workplace culture where teamwork thrives, hard work is valued, and everyone has fun along the way.

We take pride in creating an environment where employees are not only supported but celebrated. Whether you’re a job seeker exploring your next opportunity or an HR expert looking for inspiration, this recognition showcases the kind of culture and engagement we bring to the table.

This employee-centered approach reflects the trust and respect we’ve worked tirelessly to build over the years. It’s a powerful affirmation that the culture we’ve cultivated is making a tangible difference in the lives and careers of everyone on our team.

The Great Workplaces recognition by Best Companies Group is based on rigorous criteria designed to spotlight organizations truly excelling in workplace culture. Rankings are determined by “examining company practices, programs, and benefits” from employers and direct feedback from employees.

We couldn’t have achieved this accolade without our incredible team. It’s their voices that secured our spot on Medium/Large Employer list. Every employee here contributes to our vibrant culture by living out our core values. Their dedication, passion, and drive make us a standout leader in workplace excellence.

Join a Great Workplace Today!

Being named a “2025 Great Workplace in Minnesota” is more than just a recognition—it’s a promise to keep growing, innovating, and putting people first. Partner with an organization whose values aligns with yours. Browse our current open positions or connect with us to get started.

Preparing for the Next Wage Surge: Why Mid-Level Roles Will Drive Compensation in 2025

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Across industries, employers are feeling the aftershocks of rapid hiring shifts and wage pressures that began in 2021–2022. During that period—often referred to as the “Great Resignation” or the entry-level wage surge—companies scrambled to attract new or returning workers with higher wages and increased benefits, straining budgets and throwing workforce planning off balance. Now, as we move toward 2025, a new wave of competition is poised to emerge, this time focused on employees with two to three years of experience.

This blog post offers a deep dive into why mid-level hiring is primed to dominate the 2025 labor market, how this shift echoes the entry-level wage surge from a few years ago, and what employers can do today to stay ahead of the game. From the need for more proactive compensation structures to the broader challenges posed by a persistent talent shortage, we’ll explore the steps organizations can take now to ensure they aren’t caught off guard. If you’re looking for a strategic roadmap to navigate the mid-level talent crunch, read on.

The 2025 Hiring Landscape: A Shift Toward Mid-Level Talent

A Pronounced Spike in Demand

As organizations refine their post-pandemic operations and gear up for 2025, forecasts reveal a clear trend: job openings for positions requiring two to three years of experience are set to surge. While 2021 saw broad-based hiring needs at entry-level, mid-level, and senior positions, 2025 projections highlight a more concentrated demand for mid-level professionals. The reasons are multifaceted:

A. Operational Complexity
Companies have accelerated their digital transformations, implemented new technologies, and sought ways to optimize processes. Mid-level employees bring enough experience to jump into these transitions with minimal onboarding, yet are not as costly or specialized as senior-level hires.

B. Post-Pandemic Adjustments
Many employers spent 2021–2022 backfilling positions left vacant by the Great Resignation. That wave of hiring introduced a large cohort of entry-level employees who have since gained valuable experience. As these workers graduate into mid-level roles—or as new openings demand that immediate level of experience—companies find themselves competing for the same talent pool.

C. Limited Internal Pipelines
In some organizations, development programs heavily emphasize either entry-level onboarding or senior leadership mentoring, leading to a dearth of structured mid-level progression paths. As a result, many hiring managers now look externally, which increases competition for a finite group of mid-level candidates.

This confluence of factors sets the stage for a significant uptick in mid-level hiring. And, as with most tight labor markets, when demand outstrips supply, the first pressure point is compensation.

The Repeat of Wage Pressure: Lessons Learned from 2021–2022

Echoes of the Entry-Level Surge

In 2021–2022, we saw employers vying for entry-level workers in an unusually tight market. The result? Rapid wage growth, costly turnovers, and recruitment processes stretched to their limits. Fast-forward to 2025, and the pattern is similar—but the target has changed. Rather than looking for new graduates or individuals returning to the workforce after pandemic-related disruptions, companies are now laser-focused on workers with two to three years of experience.

Why Wages Will Rise for Mid-Level Roles

A. Converging Employer Needs
Multiple industries—retail, warehousing, logistics, tech, healthcare—are simultaneously identifying mid-level expertise as their top priority. This convergence amplifies wage inflation because it pits more employers against each other for the same group of candidates.

B. Budget Corrections
In 2021–2022, many organizations were caught by surprise when they had to dramatically raise entry-level wages within short timeframes. Having learned a lesson, most are now budgeting more cautiously. Even so, rapid market changes may force them to increase mid-level pay faster than planned to stay competitive.

C. Supply-Demand Imbalance
Where entry-level candidates can be found through robust campus recruiting or apprenticeships, mid-level professionals are less plentiful. They already occupy positions, they have been trained elsewhere, and they are aware of their market value—making them more confident in negotiating better pay or benefits.

In many respects, this mid-level wage surge is a carbon copy of what happened at the entry level, but with potentially bigger implications. Mid-level employees are often the backbone of day-to-day operations, making the consequences of unfilled roles or high turnover even more pronounced.

Key Employer Implications: From Competition to Compensation

1. Intensifying Competition for Mid-Level Talent

Mid-level workers have enough experience to hit the ground running but are still cost-effective compared to senior leaders. As a result, competition for these candidates in 2025 will likely reach new heights. Employers that lag behind in compensation, flexibility, or career development opportunities risk:

-Longer Vacancy Periods
Key roles sit empty for weeks or even months, stalling projects and placing heavier workloads on remaining staff.

-High Turnover
Existing mid-level employees may be poached by competitors offering higher pay or more attractive benefits.

2. Ripple Effect on the Entire Compensation Structure

When wage inflation hits any part of the workforce, it rarely stays confined to that slice for long. If mid-level salaries see a spike:

-Pay Compression
New mid-level hires might earn wages comparable to or even exceeding some of the longer-tenured staff or even certain senior roles. This can create resentment and morale problems.

-Upscale Adjustments
To maintain internal equity, employers may have to revisit pay scales for both entry-level and senior roles, further straining budgets.

3. Learning from 2021–2022: Proactive vs. Reactive Approach

The entry-level crisis of 2021–2022 revealed that a reactionary stance—scrambling to raise wages and reallocate budgets only after the market had already shifted—led to significant financial and operational disruptions. Organizations that don’t want a repeat should emphasize:

-Proactive Budget Forecasts
Incorporate mid-level wage increases into 12–18-month financial plans.

-Non-Wage Incentives
In a highly competitive labor market, benefits like flexible scheduling, remote work options, professional development, and clear career pathways can help employers stand out without excessively ballooning wages.

-Internal Talent Development
By cultivating and upskilling entry-level employees, companies reduce their reliance on external candidates who can command premium wages.

The Broader Talent Shortage: Why Mid-Level Pressure Will Intensify

1. A Structural, Not Temporary, Issue

It’s important to view the 2025 mid-level wage surge as part of a larger puzzle: the ongoing talent shortage that began to crystallize in the early 2020s shows no signs of abating. Declining birth rates, shifting demographics, and changing work preferences all contribute to a tighter labor market. As we enter 2025, the scarcity of qualified talent is expected to reach an inflection point, particularly for roles requiring some experience but not necessarily a decade-long track record.

2. Fewer Workers, Greater Competition

Throughout 2021–2022, the labor market revealed just how challenging it can be to backfill even entry-level positions in a shrinking workforce. In 2025, those challenges look to repeat, but at a higher skill level. The implications:

A. Workers Have More Leverage
Job seekers—or even those not actively looking—realize their unique position in a market where demand surpasses supply, leading to greater bargaining power.

B. Higher Turnover
Current mid-level employees who don’t feel adequately compensated or recognized may jump ship, adding to the churn and further constricting the talent pool.

3. Mid-Level Roles as the New Bottleneck

Historically, the focus has been on either plugging gaps at the entry level or seeking specialized senior talent. Now, the largest bottleneck lies in the mid-level category. Here’s why:

A. Experience Gap
Two to three years of solid, relevant experience doesn’t develop overnight. While entry-level can be hired and trained, mid-level roles require past exposure to job responsibilities, tools, and challenges—exposure that isn’t instantly scalable.

B. Business Continuity
Mid-level employees often provide critical day-to-day oversight, manage junior staff, and coordinate essential tasks. When these roles go unfilled, the entire organization feels the strain more acutely than if an entry-level position remains vacant.

4. The Ever-Widening Skills Gap

Beyond simple headcount shortages, the market also grapples with a growing skills gap. Employers increasingly require candidates to be “job-ready”—familiar with specific software, project methodologies, or industry regulations—right from the start. This heightened skill expectation is especially acute for mid-level roles.

A. Upskilling and Reskilling: Companies investing in training programs for current entry-level employees can develop a pipeline of competent mid-level staff.

B. Limited Tolerance for Long Onboarding: Many employers are reluctant to spend months training new hires in specialized tasks, especially when deadlines loom. Thus, they compete for the smaller group of already-proficient workers.

5. The Long-Term Talent Crunch

Unfortunately, these issues won’t resolve themselves. Over time, employers may face:

A. Increased Turnover Costs
Mid-level staff know their worth and are courted by multiple organizations, leading to higher turnover and additional recruitment costs.

B. Project Delays
Shortages in key roles can stall product launches, reduce service levels, and force organizations to scale back growth plans.

C. Strained Internal Culture
Rapidly rising wages for new hires can cause friction with existing employees, especially if internal pay scales don’t keep pace.

Strategic Responses: Mitigating the 2025 Mid-Level Wage Surge

1. Rethink Talent Acquisition

Conventional recruitment strategies may fall short in a market as tight as 2025’s. To stand out and fill mid-level roles, consider:

-Expanding Talent Pools
Look beyond conventional pipelines by engaging with career-switchers, professionals returning to the workforce, or people in adjacent industries whose skills can transfer with moderate training.

-Apprenticeships, Co-ops, and Partnerships
Forge relationships with trade schools, community colleges, and universities to cultivate a “farm system” that feeds mid-level roles over time.

-Targeted Outreach
Use advanced sourcing tactics, including AI-driven resume review tools, social media campaigns, and targeted community initiatives, to reach passive candidates who aren’t actively job hunting.

2. Leverage Technology and Automation

Automation can relieve some of the pressure by reducing the need for human intervention in routine tasks. By freeing your mid-level employees from monotonous work, you allow them to focus on high-value projects, potentially reducing the total number of mid-level hires needed.

-Automate Repetitive Processes
From data entry to basic customer service interactions, automating tasks can help existing staff manage heavier workloads without immediately needing more headcount.

-AI-Powered Candidate Screening
AI can streamline recruitment, quickly sifting through applicant pools to identify candidates with relevant experience. This cuts down on time-to-hire and helps match the right candidate to the right role faster.

3. Strengthen Your Employer Brand and Culture

In a wage war, compensation is critical, but it’s not the only game in town. Culture, career trajectory, and organizational values matter, especially to mid-level professionals who have enough experience to be selective about their next move.

-Showcase Meaningful Work
Emphasize projects that have tangible impact or social value. Mid-level candidates often want to see how their efforts contribute to the bigger picture.

-Offer Flexibility
Remote, hybrid, and flexible work arrangements remain highly attractive, especially for employees juggling responsibilities at work and home.

-Promote a Positive Work Environment
A strong culture of mentorship, collaboration, and recognition can set your organization apart. Mid-level employees, in particular, value leaders who help them develop and advance.

4. Build Robust Internal Pipelines

One of the best buffers against external wage pressures is to develop talent in-house. The 2025 mid-level shortage makes it more crucial than ever to:

-Fast-Track Entry-Level Employees
Identify high-potential entry-level staff early. Provide them with skill development, mentorship, and progressive responsibility so they’re ready to step into mid-level roles when openings arise.

-Cross-Training and Job Rotation
Giving employees exposure to different functions can broaden their competencies, making them more adaptable for mid-level opportunities that open up in various departments.

-Succession Planning
Map out the progression routes within your organization, ensuring you have a steady pipeline of employees prepared to move into mid-level and senior roles over time.

5. Adjust Compensation Structures Strategically

With wage spikes looming, it’s essential to revisit how your organization sets and revises compensation:

-Conduct Comprehensive Wage Audits
Benchmark your mid-level salaries against industry standards. Understand whether you’re lagging, matching, or leading the market.

-Develop Tiered Pay Scales
Consider broadening pay ranges for mid-level roles to accommodate anticipated wage growth. This helps avoid constant band-aid raises and promotes transparency.

-Incorporate Variable Pay Elements
Performance bonuses, profit-sharing, or project completion incentives can offer a middle ground between base pay stability and the need to reward strong performance in a competitive market.

Taking Action Before the 2025 Crunch

The lessons from the 2021–2022 entry-level wage surge are still fresh: organizations that recognized the trend and acted proactively minimized disruptions, while those that took a wait-and-see approach found themselves racing to react as wages skyrocketed and labor became scarce. Now, as we approach 2025, a similar scenario is unfolding—only this time, the focus is on mid-level talent with two to three years of experience.

Employers must recognize that this isn’t a short-term or easily reversible phenomenon. Demographic shifts, an aging workforce, and changing employee expectations have all contributed to a persistent, structural talent shortage. The data is clear: demand for mid-level skills will spike, and wages will almost certainly follow suit. Ignoring these signals could leave businesses scrambling again, risking project delays, morale issues, and unplanned budget overruns.

The upside is that forward-thinking organizations have a window of opportunity to prepare. By:

  1. Forecasting mid-level wage increases and integrating them into budget plans,
  2. Strengthening non-wage benefits to attract and retain talent without overextending on base compensation,
  3. Investing in internal talent pipelines to cultivate the next generation of mid-level professionals, and
  4. Embracing flexibility and a strong employer brand,

you can position your organization to thrive despite the labor market pressures ahead.

Ultimately, success in 2025—and beyond—will hinge on an employer’s willingness to adapt to changing dynamics rather than react to them. That means building a foundation of competitive compensation, a supportive culture, and a proactive approach to career development. The next wage surge is coming; whether it disrupts your operations or becomes an opportunity to innovate and stand out depends on the steps you take right now.

By treating the expected mid-level crunch as a catalyst for strategic planning rather than a crisis to be managed in haste, organizations can safeguard themselves against the worst shocks. The time to act is now. Will you be ready for the new year? Check out our services to see how we can help.

Show Your Contingent Employees You’re Thankful For Them

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While expressing your appreciation for your staff is appropriate any time of year, the holiday season is often a time where management focuses on expressing their gratitude. However, when it comes to showing their contingent employees they are thankful for their contributions, many organizational leaders aren’t sure which approaches are best. Depending on how your contingent workforce is managed, these professionals may have priorities that differ from your permanent staff. Certain gifts or rewards may not provide them with the same level of value, so finding options that speak to their needs and preferences is often ideal.

If you aren’t sure how to show your contingent employees you are thankful for them this season, here are some possibilities:

1. Say It, but Be Specific

When in doubt, offering a heartfelt “thank you” can go a long way. However, if you want it to be particularly effective, your message needs to be personal and sincere. For example, merely saying, “Thank you for doing a great job,” doesn’t highlight what the employee contributed as an individual. It doesn’t hold as much meaning because it is a blanket statement that could apply to anyone who was productive. However, if you thank them for a specific action or accomplishment, or meeting a particular goal, you are adding a personal element. This shows you acknowledge their unique contributions or capabilities, injecting more meaning into the declaration. During the holiday season, consider expressing your thanks by adding a handwritten note to a greeting card. That way, not only do they get to hear what you have to say, but they can also keep it.

2. Flexible Scheduling

Flexible scheduling during the holidays is often almost universally appreciated. This allows your employees to maintain their typical number of hours each week, but adjust when the work is done, allowing them to juggle personal and work responsibilities more effectively. If you have the ability to offer flexible scheduling to your contingent employees, consider creating a policy for it this season. You can outline points, like minimum coverage requirements or core work hours, to ensure the company’s needs are met while giving them the ability to shift their schedule within those parameters.

3. Free Food

Another option that is appreciated by nearly everyone is a free meal. A catered lunch is often fairly easy to organize and can be hosted on-site, adding a level of convenience. Just make sure you provide a wide range of potential entries, including a few options that accommodate common dietary restrictions, such as a gluten-free dish and a vegetarian meal. Additionally, consider blocking out time during the day, so everyone can participate together, giving them a chance to enjoy the food when it’s at its freshest and allowing employees to turn the event into a social occasion as well.

4. Thoughtful and Inclusive Gifts

When it comes to celebrating the holiday season at work, choosing inclusive gifts for employees can make all the difference in creating a positive and welcoming environment. Thoughtful gifts like personalized items, home essentials, or universal treats show appreciation while ensuring everyone feels valued regardless of their cultural or personal preferences. For contract or contingent staff, practical items like gas cards or meal delivery vouchers may be especially valued. By showing appreciation through small gifts, businesses can strengthen workplace morale and close out the year on a high note.

5. Team-Building Activities

Organizing team-building activities to show appreciation for contract staff is not just a thoughtful gesture—it’s a powerful way to foster stronger connections within your workforce. When contract employees feel recognized and included, it boosts morale and creates a sense of belonging, reinforcing the idea that they are a valued part of the team. These activities encourage collaboration and strengthen bonds across all levels of your organization, helping build trust and mutual respect. Whether it’s through a fun activity, cooking competition, or games, shared experiences break down barriers and leave lasting positive impressions. By investing time in these efforts, you not only show gratitude for your contract staff’s hard work but also create a more united, productive workforce.

6. Celebrate Milestones

The end of the year is a great time to recognize individual and team milestones. Whether it’s a record-breaking sales quarter or a project completed under tough deadlines, celebrate accomplishments publicly. Consider hosting a small awards ceremony, presenting certificates of achievement, or giving special shout-outs during a holiday event. This not only makes your contingent employees feel appreciated but also motivates them to strive for continued success. Take time to highlight their unique contributions and thank them for their dedication, talent, and hard work throughout the year.

7. Charity Giving

Get into the holiday spirit by involving your employees in a charitable activity. You could donate to a cause in their name, organize a volunteer day, or arrange a team donation drive. Not only does this show your appreciation for their hard work, but it also contributes to a greater cause and brings everyone together in the spirit of giving. This is especially meaningful during the holiday season when many people are looking for ways to give back and make a positive impact in their communities. By involving your contingent employees in these efforts, you demonstrate that they are an integral part of your organization’s values and culture.

Let’s Work Together

Ultimately, showing appreciation for your contingent employees is about finding ways to recognize their hard work and contributions in a personal and thoughtful manner. This holiday season, consider incorporating some of these ideas into your celebration plans and make sure that your contingent staff feels valued and appreciated for all that they do. By doing so, you can create a positive work environment where everyone feels valued and motivated to continue delivering their best work. So don’t wait until the end of the year to show your appreciation; make it a regular practice. View our services to see how we can help you better manage your contingent staff.

The Many Costs of a Bad Hire

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Any new hire comes with a price tag. You have to spend time and money advertising the position, evaluating job seekers, onboarding the top candidate, and more. Currently, it takes an average of 75 applicants and 16 interviews to secure 1 employee who will stay long-term. With that much time and resourcing going into the recruitment process for each candidate, those prices can really add up.

Many hiring managers assume the risk of making a bad hire is relatively minimal, especially for critical roles that need to be filled quickly. However, the opposite is often true, as a single subpar employee can substantially harm operations, disrupt established teams, and even cost the company customers.

Here are a few ways a bad hire impacts your organization:

1. Recruitment Costs

Recruitment costs associated with a bad hire can quickly accumulate and become a significant financial burden for an organization. At the outset, expenses arise from advertising the job opening on various job boards, which can range from inexpensive postings to premium listings costing hundreds of dollars. This is followed by the time and resources spent conducting phone screens and interviews, often involving multiple team members who must allocate valuable work hours to the process. Once a candidate is selected, onboarding begins, requiring investment in orientation sessions and materials to integrate the new hire into the company culture and workflow. Training expenses further add to the costs, as they encompass both formal training programs and the practical, hands-on guidance provided by colleagues to ensure competence in the role. Should the hire not work out, these investments are rendered fruitless, eventually necessitating further rounds of recruitment to replace the unsuitable candidate.

2. Loss of Business

A bad hire also comes with a price tag, and it’s significantly higher than one may expect. On average, a subpar selection will cost a company at least 30% of the employee’s first-year earnings. Additionally, if they work in sales or another revenue-driving position, there is an additional loss of business. If training funds are spent trying to get the bad hire to the point where they can perform, but the efforts don’t yield results, that’s additional money wasted. And if the person is ultimately fired, then you have to manage recruitment and hiring expenses again to find another candidate.

3. Productivity Cost

When you make a bad hire, your company may experience a productivity drop of approximately 36%. This occurs because the new employee not only fails to meet production standards, they also hinder their team. Often, other employees have to spend their time correcting errors made by the bad hire or simply waiting for the new worker to complete prerequisite tasks. Alternatively, they may have to put some of their own duties aside to cover essential activities the bad hire should be managing on their own. Cumulatively, the situation also damages the team’s morale. They can become frustrated with increased workloads or a bad hire’s performance, a scenario that can lead to falling engagement or even burnout. Hiring a replacement can have a similarly damaging effect, as you will again have to operate short-handed and then wait for a new hire to be brought up to speed. While this productivity dip may be necessary to get the right person in the role, it’s a secondary loss that could be avoided by waiting for an ideal candidate from the beginning.

4. Negative Work Environment

A bad hire can significantly undermine work culture and disrupt team dynamics, leading to a less cohesive and harmonious working environment. When a new employee fails to align with the company’s values or lacks the necessary skills, it can create friction and tension among team members. This discord often results in reduced collaboration and weakened communication, as colleagues may become reluctant to work closely with the problematic hire. Additionally, the presence of a poor-performing individual can lower overall morale, leading to dissatisfaction and disengagement within the team. As employees become increasingly frustrated by the additional workload and stress caused by covering for the underperformer, the once supportive and motivated work atmosphere can quickly deteriorate, impacting both productivity and retention rates as talented team members may choose to seek employment elsewhere.

5. Hinder Brand Reputation

A bad hire can significantly damage a company’s brand reputation, which is crucial both for maintaining current customers and attracting new talent. When an employee lacks the professionalism or competence expected by clients, it often results in a decline in service quality, directly affecting customer satisfaction and loyalty. Clients who experience poor service may choose to take their business elsewhere and can also spread negative reviews, tarnishing the company’s image in the marketplace. Additionally, a reputation for poor hiring choices can deter potential talent from seeking employment with the company, as skilled professionals typically seek workplaces renowned for strong team dynamics and positive work environments. Thus, the repercussions of a bad hire can extend beyond immediate operations, making it difficult to attract both future business and the high-caliber employees needed to drive ongoing success.

Avoiding a Bad Hire

When it comes to avoiding a bad hire, your hiring process is your primary line of defense. Taking the time to create a thorough and effective recruitment strategy can save your organization from potential losses in the long term. Ultimately, prioritizing quality over speed is essential when it comes to recruiting new talent for your organization. If you are looking to streamline your hiring process, Award Staffing can help. Contact us to learn more about our recruitment and hiring services today and see how our expertise can benefit you.

Creating a Work Environment Your Contingent Workers Will Enjoy

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Having a positive workplace does more than simply make the workday more pleasant. Often, it boosts morale, and that can translate into higher productivity. While creating a culture that appeals to your long-term staff is often a primary concern, by crafting one that your contingent workers can also appreciate is a smart idea. This ensures that everyone is happy, allowing them to be at their best while they are part of your team.

Here are 6 ways to create a positive work environment:

1. Start with the Workspace

When the physical environment is pleasant, everyone is more comfortable, including your contingent staff. Make sure everyone has access to enjoyable spaces, like well-appointed breakrooms. Focus on providing quality lighting to make interior areas less dark and give access to ergonomic workstation options whenever possible to promote good health. Anything that makes your workspace attractive and highly functional can be an idea worth exploring. If you aren’t sure what your contingent workers will appreciate most, consider asking. They will likely be happy to provide their input.

2. Offer Development Opportunities

Since your contingent workers may not be with you for the long-term, providing them with professional development opportunities can make you stand out as an employer of choice. Many employees accept contingent positions to help build their resumes and gain additional experience. If you can assist them in reaching this goal, morale can soar. Plus, you get the added benefit of a higher skilled workforce, which may make achieving your business objectives easier as well. Another bonus of offering professional development opportunities is the ability to create a sense of loyalty. This increases the chances that short-term workers will stay for the duration of a project as well as interest in staying on as permanent employees if the option arises. This ensures you are not experiencing a revolving door of contingent staff members, creating a stable situation for you and your workforce.

3. Provide a Variety of Work

Providing a variety of work not only keeps contingent workers engaged, but also fosters a dynamic and stimulating work environment. By exposing them to new challenges and tasks, you encourage skill development and keep the workday interesting. This approach not only prevents monotony but also taps into the aspirations of contingent workers who are eager to broaden their experience and enhance their professional growth. When contingent workers feel that their roles are diverse and meaningful, it contributes significantly to their job satisfaction and overall enjoyment on the job, ultimately benefiting the entire organization.

4. Be Transparent

Transparency is something every employee craves. Understanding the current state and health of the business provides everyone with a level of security, including your contingent workers. Additionally, by keeping your supplemental workforce apprised of their employment status, such as whether a project’s progress may result in shorter or longer-term assignment options, you can help them plan for their future. Ultimately, no one likes being left in the dark, so make an effort to keep your contingent staff informed if you want to create a work environment they will enjoy.

5. Put Trust in Them

Some companies worry about giving their contingent workers too much autonomy. However, if they have the skills and experiences necessary to succeed, extending them trust can do more than just improve morale but also free up managers who may otherwise be micromanaging the team’s activities. Trust also builds a sense of loyalty between contingent workers and the company. Even if the assignment is short-term, this connection may make them more inclined to stay for the duration, increasing your retention rates while improving morale.

6. Show Appreciation

Similar to any employee, contingent workers want their hard work to be recognized and appreciated. Taking the time to celebrate their achievements and show gratitude for their contributions can go a long way in making them feel like valued members of the team. Some ways to show employee appreciation is through highlighting accomplishments in company newsletters, starting an “Employee of the Month” program, or celebrating significant milestones. These initiatives can significantly boost morale and create a positive atmosphere within the workplace.

Setting Up for Success

By following these six tips, you can create a work environment that everyone on your team will enjoy. Not only will this improve morale and productivity, but it may also make your company more attractive to top talent in the future. A positive workplace culture is crucial for any organization looking to thrive. So, if you are interested in how to make your workplace more welcoming to your contingent staff members, Award Staffing can help. Contact us to speak with one of our experienced team members today.

Navigating the Shifting Tides of Industrial Hiring in 2025

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As we move toward 2025, the industrial sector is facing an evolving landscape in terms of hiring and recruitment. Since the hiring frenzy that followed the pandemic, many companies in manufacturing and warehousing have experienced a significant slowdown in recruitment demand. This “manufacturing recession,” which took hold in 2023, has allowed businesses to temporarily step back from the frantic pace of hiring that characterized the years immediately following COVID-19.

Now, with the Federal Reserve beginning to lower interest rates, we anticipate a gradual recovery in hiring activity. However, unlike the sharp post-pandemic spike, the increase in recruitment will be slow and steady. Think of it as the slow thawing of an ice cube—gradual but inevitable. The key to navigating this new reality will be strategic foresight and planning.

While many of the extreme pressures of the past few years may have subsided, one thing is clear: the challenges that arose during the hiring surge of 2020–2022 have not disappeared. As we look ahead to 2025, businesses must prepare for a shifting labor market and adopt new strategies to overcome persistent hiring challenges.

What Has Not Changed: The Misconception of Increased Talent Availability

For many businesses in the manufacturing and warehousing sectors, the slowdown in hiring during 2023 offered a welcome respite. Companies no longer had to scramble to fill positions at breakneck speed, and there was a collective sigh of relief across the industry. However, this reprieve has led to a common misconception—that the availability of high-quality talent has increased.

Unfortunately, this is not the case.

Unemployment in the Twin Cities metro area, for example, has remained steady at around 3.1%, and labor force participation rates for prime working-age individuals continue to hover at historically high levels. In other words, while the urgency to hire may have lessened, the pool of qualified candidates has not grown. The tight labor market that made hiring so difficult in 2020–2022 is still a reality for many companies.

What this means for businesses is that the quality of talent remains largely unchanged. Issues like attendance problems, no-call no-shows, and early walk-offs are still prevalent. These challenges may have been less visible during the hiring slowdown of 2023, but they are far from being resolved. As hiring needs begin to increase again, companies must be prepared to deal with these issues head-on, armed with strategies that reflect the realities of the current labor market.

What to Expect: Gradual Hiring Increases with Familiar Challenges

Looking ahead to 2025, we are not anticipating a sudden surge in industrial hiring similar to what we saw in the immediate aftermath of the pandemic. Instead, we expect a slow and steady increase in hiring needs as interest rates continue to decline and economic activity begins to pick up.

This means that while companies should be prepared for increased recruitment demand, they should not expect the chaotic hiring environment of 2020 and 2021. Instead, we foresee a more manageable, albeit gradual, increase in the need for talent across manufacturing and warehousing.

At the same time, businesses should have realistic expectations about the available talent pool. The reality is that many of the candidates you want to hire—the ones with the skills and experience necessary for long-term success—are already gainfully employed. Sourcing these candidates will take time, effort, and a well-crafted strategy to sell them on new opportunities. Gone are the days of simply posting a job and expecting qualified candidates to come flooding in.

Furthermore, we expect that much of the candidate behavior that defined 2021 and 2022—such as inconsistent attendance and early walk-offs—will persist into 2025. While businesses may hope for a shift in employee attitudes and behaviors, the challenges of retention, engagement, and reliability are likely to remain. This means that the strategies companies adopt for hiring in 2025 must address not only sourcing but also the ongoing challenge of keeping employees engaged and committed.

Overcoming the Challenge: Adapting Recruitment Strategies for 2025

To successfully navigate the evolving hiring landscape of 2025, businesses in the industrial sector must rethink their recruitment strategies. The post-pandemic hiring boom may be behind us, but the challenges it revealed are still very much present. The following strategies are designed to help businesses overcome these hurdles and position themselves for success in the year ahead.

1. Streamline Onboarding Processes

Efficiency in onboarding will be more important than ever in 2025. In a competitive labor market, the speed at which you move candidates through the hiring process can make the difference between securing top talent and losing them to a competitor. Candidates expect quick responses, seamless transitions from application to interview, and a well-structured onboarding experience.

Key questions to consider include:

–How long does it take to respond to applications? In today’s fast-paced job market, candidates are often juggling multiple opportunities. A delay in response could mean losing a valuable hire.

– Are your job descriptions clear and compelling? Job descriptions should be specific, highlighting not just the responsibilities but also the unique aspects of your company culture and the benefits of working for your organization.

–How efficient is your time-to-fill process? While speed is important, businesses must also balance the need for thorough screening. Rushing through the hiring process can lead to misalignment in skills, experience, or cultural fit, which can ultimately result in higher turnover.

2. Strengthen Screening Process

In 2025, the importance of robust screening processes cannot be overstated. Given the challenges associated with candidate reliability, businesses must go beyond traditional resumes and interviews to assess candidates. Incorporating more advanced screening tools, such as behavioral assessments and scenario-based evaluations, can help you better gauge a candidate’s potential fit within your organization.

The goal is to identify potential red flags early in the recruitment process, before candidates are brought on board. Our experience has shown that organizations that invest in more rigorous screening processes tend to see higher conversion rates and longer employee tenure. This proactive approach can help mitigate issues like no-call no-shows and early walk-offs, which have been prevalent since the pandemic.

3. Prioritize Cultural Fit

Cultural fit has always been an important aspect of hiring, but in 2025, it will be more critical than ever. Hiring for cultural fit ensures that employees are not only capable of performing their jobs but also thrive within the organizational environment. Candidates who align with your company’s values, mission, and team dynamics are far more likely to remain engaged and committed in the long term.

To hire for cultural fit, businesses should go beyond assessing technical skills and qualifications. Instead, focus on understanding how a candidate’s values and working style align with your company culture. This can be done through behavioral interview questions, assessments, and even peer interviews. Hiring for cultural fit will not only help reduce turnover but also contribute to a more cohesive, engaged workforce.

4. Invest in Training and Upskilling

As we move into 2025, one of the most effective ways to address hiring challenges is by investing in training and upskilling your existing workforce. Rather than relying solely on external talent pools, companies can focus on developing the skills of their current employees to meet evolving business needs.

This approach not only fills skills gaps but also fosters greater employee loyalty and engagement. When employees feel that their company is invested in their professional development, they are more likely to remain with the organization for the long term. Upskilling can also help businesses remain competitive in an industry that is increasingly adopting new technologies and processes.

5. Leverage Payrolling Services for Flexibility

For businesses looking to reduce risk and turnover in their hiring processes, payrolling services offer a valuable solution. This “try-before-you-buy” approach allows companies to bring on temporary employees while assessing their fit within the organization before making a permanent hiring decision.

By using payrolling services, businesses can mitigate the risk of turnover and avoid the costs associated with making poor hiring decisions. This model provides flexibility, allowing companies to scale their workforce up or down as needed while maintaining a stable and reliable team.

Preparing For The Future Hiring Landscape

As the industrial sector looks toward 2025, businesses must be prepared for a gradual, steady increase in hiring demand. While the immediate pressure to hire may have subsided, the challenges associated with finding and retaining top talent remain. Companies that are proactive in adapting their recruitment strategies—focusing on efficient onboarding, rigorous screening, cultural fit, training, and flexible hiring solutions—will be best positioned to succeed in this evolving landscape.

The time to act is now. As interest rates continue to fall and hiring needs slowly rise, those companies that prepare for the future will be the ones that thrive in 2025. Start refining your hiring strategies today to ensure your organization is ready to meet the challenges of tomorrow’s labor market head-on.

 

What Can Payroll Services Do For You?

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Payroll is a critical part of any business. When you pay your employees, you are rewarding them for their hard work, dedication, and diligence. However, payroll is also incredibly complex. Calculation errors can significantly harm morale, particularly if they lead your workforce to be underpaid. Plus, keeping up with complicated tax codes and regulations can make handling your own payroll cumbersome, especially for small businesses who can’t afford dedicated payroll staff. Luckily, there is an alternative that can make managing payroll a breeze: payroll services.

A payroll service is a third party that manages payroll processing for their partner businesses. They allow you to outsource your payroll activities, substituting for a traditional in-house payroll staff. The arrangement can provide a range of benefits to companies.

Here are just some of the advantages you will experience:

1. Accuracy

Payroll service providers understand the importance of accuracy. Small missteps in payroll processing can lead to substantial fines, so they work diligently to ensure all the information is correct and that all applicable tax codes and regulations are taken into account. Additionally, they stay up to date in regards to any changes that can affect payroll, such as the passage of new tax laws. Since they are payroll experts, their knowledge base is vast, limiting the likelihood of costly errors.

2. Functionality

Many payroll service providers embrace technology that allows them to offer the highest level of functionality to their partner companies. For example, they are typically equipped to support direct deposit, create management reports, prepare W2 forms, manage standard deductions, and even handle retirement plans for your staff. This means you have access to a range of services that may otherwise be inaccessible to your company if you handled payroll in-house.

3. Convenience

Partnering with a payroll service can free up valuable time, energy, and resources. By outsourcing these responsibilities, you eliminate the need for in-house staff dedicated to payroll processing, which can lead to significant cost savings. This also alleviates the administrative burdens associated with payroll management. Additionally, you can reduce software expenses since these tasks no longer require internal oversight. Overall, outsourcing these tasks allows you to focus on your business’ core competencies which enhances profitability.

4. Security

Payroll records are incredibly sensitive, especially since the information could be used by identity thieves if it is compromised. When you partner with a payroll service, your employee information is typically stored in servers that boast a high level of security, cutting-edge encryption, and backups, ensuring your data is protected from all angles. Often, if you tried to recreate this same level of security in-house, the cost would be astronomical. By selecting a payroll service provider, you gain access to top-notch security features as part of the package.

Your Payrolling Solution

Ultimately, using a payroll service can provide you with a significant number of benefits from cost savings to improved accuracy. If you are looking for a leading payroll service provider, Award Staffing can create a customizable and flexible plan based on your needs. Our payrolling services let you add headcount without managing employment records. Contact one of our experts today to discuss your payroll requirements and see how our services can benefit you.

Why Hiring Now is Crucial for Future Success

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The importance of strategic hiring cannot be overstated. As we navigate through periods of slow growth, it’s essential to recognize that the hiring landscape will soon become competitive again. Delaying the hiring process not only increases the risk of losing out on top talent but also opens the door for candidates to seek better opportunities elsewhere, leading to higher turnover rates. To ensure your organization thrives when demand surges, having the right team in place is vital.

Here are 5 reasons why hiring teams should act now to secure their future workforce.

1. Prepare for The Future

Running a successful business requires foresight. You need to anticipate challenges and opportunities long before they arise. One crucial aspect of this preparation is having the right team in place. It’s not enough to hire just when you need someone immediately; you must think long term.

Consider this: if you wait until there’s an urgent need, you might end up settling for less-than-ideal candidates. This can impact your operations, customer service, and overall company morale. Planning your hiring strategy well in advance ensures you have skilled professionals ready to step in when business picks up.

2. Outpace the Competition

Despite current market downturns, now is the perfect time to start hiring. When the market recovers, businesses will ramp up production and demand for skilled workers will surge.

By hiring during a downturn, you position your company to hit the ground running when things improve. You’ll have a trained, cohesive team ready to tackle increased workloads and new projects. This proactive approach gives you a competitive edge over businesses that delayed their hiring plans.

Furthermore, talent is more accessible during economic slowdowns. With fewer companies hiring, you can attract top-tier candidates who might otherwise be unavailable. Don’t miss this unique opportunity to strengthen your team with exceptional talent.

3. Get Ahead of The Talent Rush

Once the market rebounds, job seekers will have multiple options. Companies will be vying for top talent, often offering higher salaries and better benefits to lure candidates. If you delay your hiring, you’ll find yourself in a highly competitive environment, making it harder to attract and retain the best employees.

Having the right team in place early allows you to build loyalty and commitment. Employees who feel valued and appreciated are less likely to jump ship for a marginally higher pay. By investing in your workforce now, you create a stable, engaged team that will stick with you through thick and thin.

4. The Cost of Waiting is High

The longer you wait to hire, the more you’ll have to compete later. This isn’t just about competing for talent; it’s about competing in the market. Delays in hiring can lead to missed opportunities, decreased productivity, and even loss of revenue.

For example, consider the impact on project timelines. If you don’t have the necessary personnel, projects can get delayed, causing a ripple effect across your operations. Customers might experience slower service, and your brand reputation could suffer.

Realizing that results won’t change until you do is crucial. Proactive hiring is a strategic move that can significantly improve your business outcomes. Don’t wait for the perfect moment—create it by taking action now.

5. Upskill Your Team

Succession planning is essential for upskilling your team and preparing for the inevitable retirements that occur within any organization. By proactively identifying and developing talent, you create a robust pipeline of skilled individuals ready to fill higher-level roles as they become vacant. With tenured employees training entry-level positions, this preserves institutional knowledge, but also fosters a culture of continuous learning and growth. As a result, your organization benefits from enhanced stability and performance, ensuring that the transition of key roles occurs smoothly without disrupting operations.

Your Hiring Partner

Waiting to hire can put you at a significant disadvantage. Small businesses and HR managers must act now to secure the talent needed for future growth. By preparing for the future, taking advantage of current market conditions, and upskilling your team, you position your company for success.

Don’t wait to figure out your hiring strategy. Take control of your future by making proactive hiring decisions today. Start the process of finding the right people for your team now.