Era of Artificial Intelligence Has Arrived
The last several years have seen the staffing and recruiting industry undergo significant changes as it evolves with new human resources technologies, flexible working options, new skill requirements, a growing labor market, and sophisticated employee identity theft.
However, the greatest change in the industry is the new technologies that are now available, namely artificial intelligence (AI). It is safe to say that the era of AI has arrived.
As such, we must embrace it and use the new technologies to help our clients attract, identify, engage, and hire talented and skilled workers.
Some of the important trends that are taking place also present significant challenges.
Facing a worker and talent shortage across all industries is a common theme. A 2024 report by Manpower revealed that a whopping 75% of employers report difficulty in filling jobs.
However, there is reason for optimism. The 2024 State of Staffing found that most agencies are expecting strong growth in the years ahead.
Some key highlights of the findings, as reported by Staffing Hub, include:
- Client acquisition and sales, economic challenges, and talent acquisition are the top three challenges agencies are facing.
- The percentage of respondents who agreed that recruiting automation is going to transform the staffing industry jumped to 73%, up 11 percentage points from last year.
- Roughly half of respondents currently use AI for business applications, and 48% of those who don’t yet use AI plan to adopt it this year.
- “Relationship-oriented” and “goal-oriented” continue to be the top two attributes of an ideal recruiter — however, fast-growth businesses placed more priority on relationship orientation, while agencies that contracted rated goal orientation as more important.
Identifying and attracting talent and skilled workers are ongoing challenges, especially as more and more workers move from job to job. And that is where embracing AI and the technologies come into play.
We know that technology is changing rapidly. That is why we at Luttrell Staffing Group continue to refine our use of technology to gain efficiencies in our processes. Tools such as our app that allows a job seeker to be immediately notified on their registered device when a job is available in their area, are saving recruiters valuable time.
AI is here to stay, and it is transforming our industry.
We are now using AI to help attract quality candidates, adapt to the expectations of today’s workers, increase productivity, and streamline selection the process, as we better serve our clients and candidates.
However, it is important to be cognizant that while adopting AI, we must maintain a balance between these new technologies and preserving personalized human interaction. It is the tenured and substantive relationships our recruiting teams maintain with candidates, past employees, and their communities that have enabled us to tap into hard-to-find talent and match quality candidates with good opportunities for 31 years.
This has proven to be a differentiator as it is noted in our Clearly Rated surveys and part of what has enabled us to achieve the top 1% of staffing firms status. Striking that balance will be important.
Remote Hiring and Identity Fraud: Verifying Candidates
As you know, we have highlighted the ongoing concern about the rise of sophisticated identity theft of workers, which is an increasing danger to businesses and staffing agencies. Below are excerpts of an important recent article by Quadra Bay on Identity Fraud.
- In order to match current trends, recruitment processes that were once considered ‘normal’ have changed significantly. As a result, your talent pipeline becomes less vulnerable to dishonest candidates who commit identity fraud.
- Due to the increasing use of online alternatives in recruiting, interpersonal communication is decreasing, and fewer colleagues are involved in the interview process. You may end up causing costly havoc in your company if you rely solely on loose qualifications, scripted answers, and photocopied documents. Be sure that you are dealing with the right candidates so that you can repel identity fraud.
- The recruiter who hires remotely may encounter candidates who have assumed a false identity, submitted false credentials, fabricated work experience, or combined all of them.
- In the worst-case scenario, impersonation could result in resource drain, embezzlement, client loss, reputational damage, damages to employees, and ultimately, the loss of life. An Identity Verification Market report by Research and Markets states that the market is expected to grow from US$7.6 billion in 2020 to US$15.8 billion by 2025, proving the need for hiring processes to be protected with identity verification.
- Identity theft reports doubled from 2019 to 2020 in the US alone, to 1.4 million. Before the pandemic, the Department of Premier of South Australia hired a woman without proper qualifications. A fraudulent resume, false education and employment information, and a fake LinkedIn photo led to her landing a high-paying job. High-profile cases such as this one, involving the Australian government, underscore the importance for companies to thoroughly vet their employees and preserve their reputations. The identity check process must be considered a necessary part of the interview process by employers in unfortunate scenarios such as this one.
- Taking preventative measures against identity fraud is the best approach. You should inform your audience that potential applicants must undergo background checks as a prerequisite as soon as your position is advertised. In addition to confirming their identities, it is important to verify their qualifications, work experience, education, and good standing as well. The candidate screening experience will be willingly endured by genuine candidates who have nothing to hide. You will demonstrate your commitment to hiring candidates if you implement these standards from the start.
- Since much of the working world began working from home, much of the HR environment and how employers recruit has changed dramatically. Fraudulent applications are all the more likely to occur in an environment of widespread unemployment and inefficient safeguarding.
Luttrell Ranked Among Largest Industrial Staffing Firms
SIA estimates that 56 firms generated at least $100 million in US industrial temporary staffing revenue in 2023 and their 2024 list of largest industrial staffing firms includes Luttrell Staffing Group.
Added together, these top firms generated $30.3 billion in such revenue, accounting for 88% of the market, by SIA estimates.
The market share held by the largest industrial staffing firms has increased substantially from 2008 to 2023, although the trend reversed temporarily in 2019 and once again in 2022. However, in 2023, the market share of the five largest (36%) remained the same while the market share of the 15 largest firms increased to 60%.
The complete list of firms can be found in a new interactive tool.
Employee Spotlight
Bonnie Rodgers-Irey and Monica Shuffett, a remarkable mother-daughter duo, have been working together at Lutrell Staffing Group for over two decades.
Their journey began in 1997 when Bonnie had just been laid off from OshKosh.
Monica sent Bonnie’s resume to her colleague Sandy Jones Broussard after asking if the organization hired relatives. She said yes but did not disclose to her the relationship. Sandy interviewed Bonnie and she was hired on the spot!
This is where their professional partnership began.
The Columbia Branch of Lutrell Staffing Group primarily focused on helping individuals transition from Columbia to Glasgow, Kentucky, due to significant layoffs at various companies in the area. Over the years, the Columbia branch has achieved great success and developed its own book of business.
The journey at Lutrell Staffing Group has been nothing short of amazing for Bonnie and Monica. They express gratitude for each other’s dedication, loyalty, and hard work. As a mother-daughter team, they have managed to maintain a healthy work-life balance by being open and honest with each other. They value personal and professional growth and approach any criticisms with a learning mindset. Initially, they faced challenges in coordinating time off due to their shared love for vacationing together. However, with Monica’s role change and Bonnie receiving support in her branch, they now enjoy the flexibility to spend time off together. Laughter is a constant in their work environment, and their strong support for each other creates a healthy atmosphere.
Bonnie’s passion for helping people and her exceptional work ethic make her a valuable asset to the company. She possesses a natural ability to connect with others and approaches her work with care and candor. On the other hand, Monica brings a strategic and creative mindset to her role. She is tech-savvy, enjoys working with data, and thrives on implementing innovative approaches to the business. Together, Bonnie and Monica form a formidable team that prioritizes relationships, treating people with kindness and respect. Their shared commitment to family and faith drives their work ethic and shapes their approach to business.
Contributing to the success and growth of Lutrell Staffing Group as a mother-daughter team fills Bonnie and Monica with immense pride and responsibility. Having worked together for 27 years, Bonnie has witnessed Monica’s growth and has been instrumental in her professional development. Monica, now serving as the Vice-President of Woman-Owned Companies at Lutrell Staffing Group, acknowledges that she owes her success to Bonnie’s support, guidance, and unwavering love.
Throughout their years at Lutrell Staffing Group, Bonnie and Monica have shared numerous memorable and rewarding experiences. Building long-lasting relationships with clients for over two decades stands out as one of their most rewarding achievements. They have also encountered many amusing “staffing stories” that have kept them laughing and created unforgettable memories. Through challenging times like the COVID-19 pandemic and economic downturns, their unwavering support for each other has been the most remarkable aspect, helping them navigate through difficult situations.
Bonnie and Monica’s dedication, teamwork, and unwavering commitment to the values of Lutrell Staffing Group have made a significant impact on the company. Their unique strengths and complementary skills have contributed to their individual and collective success. As a mother-daughter duo, they have not only shaped their own careers but also fostered a nurturing and supportive work environment that positively influences those around them. Their story embodies the spirit of family and collaboration, reminding us of the power of strong relationships in achieving professional excellence.