How to Conduct a Workforce Analysis for 2025 Success

By: Frances Velez, Payroll Services Manager 

Fran ensures accurate payroll and invoicing, advises clients on staffing best practices, and builds strong, trusting relationships. 

Evaluate What’s Working & Areas for Improvement

Your internal team and candidate pool are the backbone of your staffing agency’s success. A thorough workforce analysis ensures you’re ready to meet client demand, adapt to industry trends, and strengthen your position in the competitive staffing market. Here’s how you can assess your workforce and talent pool effectively. 

1. Review Staff Performance

Start your workforce analysis by evaluating your internal team’s performance. Consider whether your current structure supports your growth goals for the upcoming year. 

• Identify training needs: Determine where additional training or certifications can enhance your team’s efficiency and client service. 
• Explore upskilling opportunities: Empower your team to take on higher-level tasks by developing new skills that align with market trends. 
• Restructure for success: If certain roles are underperforming or overlapping, restructure to maximize productivity and streamline operations. 

By investing in your staff, you improve internal performance and strengthen client and candidate relationships. 

2. Evaluate Your Candidate Pipeline

An effective candidate pipeline is crucial for fulfilling client demands. This year-end review is the perfect time to address any gaps and plan for future needs. 

• Analyze placement trends: Are there specific industries or roles where you struggled to meet client demands? Refocus efforts on sourcing high-demand skills. 
• Expand your sourcing efforts: Look beyond traditional methods. Tap into passive candidates and underrepresented talent pools. 
• Leverage AI and automation: Tools like AI-driven screening and matching can speed up processes, reduce time-to-hire, and improve the quality of placements. 

A robust and diverse pipeline helps you better adapt to market fluctuations and client needs. 

3. Implement Retention Strategies

High candidate turnover can strain your operations and client relationships. Retention should be a top priority for maintaining a strong workforce, so I recommend it as part of a workforce analysis. 

• Offer incentives: Bonuses, rewards programs, and other perks can keep top talent engaged and motivated. 
• Provide regular feedback: Clear communication and constructive feedback build trust and loyalty among candidates. 
• Upskilling for retention: Offering training programs or certifications enhances candidate value and encourages long-term loyalty. 

Retention isn’t just about keeping candidates; it’s about ensuring they’re happy, engaged, and ready for redeployment. 

4. Adopt Emerging Workforce Trends

The staffing industry is constantly evolving. Stay ahead by embracing trends that enhance your talent pool and meet client expectations. Here’s what to consider in your workforce analysis: 

• AI and automation: Use tools to personalize candidate communication, craft tailored job descriptions, and streamline placement processes. 
• Skills-based hiring: Help clients shift from degree requirements to skills-based hiring, which widens talent pools and speeds up placements. 
• Remote and hybrid opportunities: As remote work grows, source talent from broader geographic areas to offer clients more options. 
• Upskilling initiatives: Equip candidates with certifications or training to meet the demands of rapidly changing industries. 
• Enhance the candidate experience: Make application processes seamless and mobile-friendly, provide real-time updates, and deliver personalized feedback to keep candidates engaged. 

These trends are reshaping the industry, and agencies that adapt quickly will remain competitive. 

Don’t Overlook a Workforce Analysis for Next Year!

A workforce analysis can be a critical step in preparing for the challenges and opportunities of the new year. Evaluating staff performance, candidate pipeline, retention strategies, and emerging trends helps set your agency up for sustained success. 

With the right strategies, your agency can thrive in 2025 and beyond. Take the time now to refine your approach and position your workforce as your greatest competitive advantage. You may also want to evaluate payroll funding for 2025 – contact my team to see if payroll funding is a good fit for you!