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.

Why Too Many Job Applicants Hinder Hiring Success

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The current job market is experiencing an unprecedented shift. Many companies find themselves overwhelmed by an influx of job applications, primarily due to widespread layoffs across various industries. This surge in applicants might seem like a positive development at first glance. However, the reality is more complex. With so many candidates to evaluate, hiring managers and HR professionals are spending excessive amounts of time sifting through resumes—many of which do not meet the required qualifications.

This blog aims to explore why having a large number of applicants isn’t necessarily beneficial.

1. The Fallacy of Quantity

Many assume that a high volume of job applicants means more options and a higher likelihood of finding the perfect candidate. Unfortunately, this is a common misconception. When faced with a mountain of resumes, HR professionals may feel a false sense of security. The assumption is that somewhere in that pile lies the ideal candidate. However, sheer numbers often mask the reality that many applicants may not be suitable for the role. This creates a paradox where more options result in less effective decision-making.

In fact, the abundance of applicants can dilute the overall quality of the candidate pool. Instead of focusing on finding the right fit, hiring teams may become bogged down by the sheer volume of resumes to review, increasing the chances of overlooking qualified candidates. So if you’re seeing large quanities of applicants, think about if your job ad is reaching the right people.

2. Quality Over Quantity

Focusing on the right applicants rather than a large pool is essential for effective hiring. Studies show that a well-targeted recruitment strategy often yields better results. For example, LinkedIn’s Global Recruiting Trends report highlights that 78% of recruiters prioritize quality of hire over quantity. Targeting and attracting the right talent ensures that the candidates who apply are more likely to meet the job’s specific requirements.

Additionally, many current applications originate from online job boards that utilize AI to assist job seekers in enhancing their resumes. This can result in exaggerated experiences and skills that may not be trustworthy. While attracting candidates isn’t the issue, the real question is: how many of them are truly qualified? Why squander your time and resources on candidates who don’t meet your standards?

Quality applicants are not just those with the right skills but those who align with your company culture and values. By focusing on quality, you reduce the time spent on interviews and increase the likelihood of making successful hires.

3. The Cost of High Volume

Managing a high volume of applicants comes with hidden costs that can strain your resources. Time is one of the most significant costs. Sifting through hundreds of resumes and cover letters takes hours, detracting from other crucial HR functions.

Moreover, a high volume of applicants could also result in a negative candidate experience. No one has time to follow up with the other 100 candidates who applied to the position. This may result in candidates feeling neglected and lose interest in the position when they don’t receive timely updates or feedback from the company. This can damage your employer brand and make it harder to attract top talent in the future.

Lastly, there’s the financial cost. The longer the hiring process takes, the more expensive it becomes. Time spent on extensive screening and interviews translates to higher operational costs, which can be particularly burdensome for smaller companies.

By focusing on quality over quantity, you can streamline your recruitment process and allocate resources more effectively. This leads to a better overall candidate experience and saves time and money for both the company and candidates involved.

4. Solutions and Best Practices

To counter these challenges, here are some strategies to attract quality applicants and streamline your hiring process:

1. Leverage AI and Automation

Utilize AI-driven tools to filter applications. These tools can quickly identify resumes that match your job criteria, allowing you to focus on the most promising candidates. Automation tools can also streamline the interview process and provide quick feedback to candidates, improving their experience.

2. Define Your Hiring Criteria

Clearly outline the skills, qualifications, and characteristics you’re looking for in a candidate. This prevents unqualified applicants from wasting their time applying for a role they’re not fit for. Additionally, publicizing your criteria can help attract quality candidates who align with your requirements.

3. Utilize Pre-Employment Assessments

Pre-employment assessments are effective tools that can help you identify top-quality candidates early on in the hiring process. These tests evaluate various traits such as cognitive abilities, job-specific skills, and personality. This way, you can identify and focus on the most suitable candidates for further consideration.

3. Optimize Your Recruitment Channels

Focus on platforms where your ideal candidates are most likely to be found. Whether it’s LinkedIn for professional roles or niche job boards for specialized positions, targeted recruitment channels yield better results.

4. Conduct Structured Interviews

Use a structured interview process to ensure consistency and fairness. This approach makes it easier to compare candidates and select the best fit for your needs.

5. Outsource Your Hiring

Work with a local staffing agency to help you identify high quality candidates for your positions. They have access to many networks and can help you find the right fit for your company culture, saving you time and resources.

Partnering Together

At Award Staffing, we recognize the challenges posed by a high influx of candidates. Wasted resources, subpar resumes, and overall poor quality can hinder your hiring process. That’s where we come in. Our advanced behavior screening ensures we only present candidates you can trust.

Our unique method swiftly identifies quality candidates by filtering out those who engage in unsafe behaviors such as theft, violence, substance abuse, excessive drinking, and fraudulent workers’ compensation claims.

Streamline your application process and save valuable time and resources with our behavior screening today. As an extension of your team, we’ll also conduct interviews, start onboarding steps, and even payroll. Reach out to our dedicated Sales team to access quality candidates more efficiently.

StarTribune Features Award Staffing in Minnesota’s Best

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EDINA, MN August 12th 2024- We are filled with gratitude and pride for winning Bronze in “Best Staffing/Recruitment Firm” by StarTribune’s Minnesota’s Best contest. Our commitment to exceptional service for our clients and growth opportunities we offer job seekers have garnered significant recognition.

At the heart of our operation lies our passion to redefine the work experience in the Twin Cities’ light industrial and skilled industrial industries. Our core values of teamwork, working hard, fun, and kindness drive our mission to transform staffing solutions from the routine and stressful to the purposeful and fulfilling.

This award symbolizes more than a trophy on our wall; it represents our continued dedication to making a positive impact on our clients, candidates, and communities. It is confirmation of our successful strides towards excellence, our creation of lasting partnerships, and our unyielding focus on enhancing lives through meaningful work.

Rooted in our understanding of your unique needs, we evolve and innovate to offer not only staffing solutions but also unwavering support as you navigate the lively world of work. This ethos guarantees a high standard of excellence.

Our trustworthy clients, resilient job seekers, and loyal partners have each played a part in our success. We are truly grateful for your trust and support. As we celebrate this achievement, we renew our commitment to uphold the highest standards of service and strive for success at every turn. Thank you for being part of our journey and here’s to more fruitful years ahead.

Partner with a Top Minnesota Staffing Agency! View our services to uncover tailored, unique staffing solutions that will elevate your business to new heights. It’s time to empower your business with the right talent. Let’s redefine the meaning of work together and embark on a journey towards success.

Attract Gen Z Talent Through Priority Recruitment

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The newest graduates, Gen Z, have different priorities in comparison to previous generations. This means that traditional recruitment techniques may not be as effective if you want to draw in some of these newly minted professionals. Overall, they want to feel secure and plan for their future. Simply selling new grads on the job itself isn’t going to speak to their greater interests. Additionally, focusing on the salary alone won’t be particularly enticing either, even though it still needs to be part of the conversation. If you want to hire a recent graduate, you need to speak to their desires.

Here are 5 steps to get started:

1. Career Progression

New graduates are keen on seeking roles that provide opportunities for advancement. Focus on how their role will evolve over time and the potential for growth within the company; not just their specific role. Since they are in the early stages of their careers, they view these jobs as stepping stones that can help them move forward, so discussing where the position can take them is more enticing. Let them know about the skills they will learn and the experiences that await them. Discuss internal training and professional development opportunities, including everything from the chance to cross-train to mentorship arrangements. This lets the candidate know that there is room to grow in the role, helping them reach their goals while they work for the company. Demonstrating a clear path for career progression will entice Gen Z candidates who are always looking towards their future.

2. Stability and Security

Gen-Z is highly interested in roles that can give them job stability and financial security. This is especially important to them because they are entering the workforce during a time of economic uncertainty. They want to know that their job will be secure and not at risk of being eliminated in the near future. When discussing job opportunities with Gen Z candidates, highlight any company initiatives for long-term sustainability or financial stability. Highlight the benefits on the role besides salary such as flexible schedules, health insurance, retirement and 401k. By emphasizing stability and security, you can appeal to one of Gen Z’s top priorities.

3. Speed and Efficiency

To effectively attract young candidates, it’s crucial to streamline your recruitment process by eliminating unnecessary steps that may hinder their experience. Gen Z expects efficiency, so aim to simplify application procedures and reduce time-consuming assessments. Communicate promptly and clearly with candidates throughout the recruitment journey, keeping them informed about their application status and the next steps in the process. This level of transparency not only shows respect for their time but also enhances their overall experience with your company. By prioritizing speed and efficiency, you create a more appealing recruitment process that resonates with the desires of young job seekers.

4. Purpose Driven Work

Gen Z is particularly drawn to businesses that embody a meaningful purpose and show a genuine commitment to community engagement. This generation seeks to align their career choices with their personal values, desiring to work for organizations that make a positive impact on society. They are more likely to be attracted to companies that prioritise sustainability, social responsibility, and inclusivity in their business practices. By actively demonstrating a commitment to these principles, businesses can resonate with Gen Z, showcasing that they are not just focused on profit, but also on contributing to the greater good. By fostering a workplace culture that values community initiatives and encourages employee involvement in philanthropic efforts, companies can significantly enhance their appeal to this socially conscious generation.

5. DEI and Culture

Company culture and diversity, equity, and inclusion (DEI) efforts are incredibly important to younger members of the workforce. They want to join a team that gives them a sense of belonging as well as makes them feel heard and valued. Businesses that prioritize DEI and foster an inclusive culture attract Gen Z candidates who are seeking a diverse and accepting work environment. Ideally, highlighting your culture needs to begin outside of the talent pipeline. Embrace social media as a vehicle for showcasing the causes your company supports, any charitable work, or simply what makes your business a great place to work. Younger workers want to feel a connection to their employer, so demonstrating your community involvement and how your products or services benefit more than just the bottom line can go a long way when you need to attract new grads.

Hire Recent Grads to Your Team Today

Hiring Gen Z graduates requires a fresh approach. Companies must understand their priorities and adjust recruitment strategies to attract this new wave of talent. Emphasizing career progression, stability, and security can meet the desires of Gen Z candidates. By showcasing a meaningful purpose, ensuring a speedy recruitment process, and fostering a diverse and inclusive culture, companies can resonate with the values of this socially conscious generation. Understanding what motivates Gen Z and demonstrating how your company aligns with their priorities will help attract top talent from this emerging demographic. Let us help you find great people for your team. Contact us to get started!