The Top Staffing Challenges of 2026 (And How to Solve Them)

Staffing is a major challenge for many businesses today. With experienced workers leaving, a shortage of qualified candidates in some industries, and AI changing how many processes work, it’s often difficult to find and keep the right staff. 

Fortunately, most of these problems have solutions. We discuss some of the most common staffing issues and how to deal with them below.

1. Loss of Skilled Employees

In many industries, companies expect to lose key workers to retirement in the coming years. Census Bureau research shows that 24% of the U.S. workforce is 55 years old or older, up from 10% in 1994. While many workers plan to wait longer to retire or continue working in semi-retirement, others still plan to retire at a traditional age.

In some industries, losing these experienced workers could have an especially large impact. A recent survey of 1,500 global frontline managers and employees in the US, UK, and Germany found that 72% of managers in retail and manufacturing are not confident their companies will be able to retain the knowledge and expertise lost when experienced workers retire. 

The Solution: Start Planning For Staffing Changes Now

Your company needs employees who can fill in the gaps when older employees leave. Once you know someone is retiring, you can start planning for it right away.

The retiring employee can help train either an existing coworker or a new employee before they leave. They may want to create resources to share their expertise. A staffing agency can help you screen candidates for any positions that will open up, and you can use a temp-to-hire staffing arrangement to make sure the new employee is a good culture fit. 

2. Skills Gaps and Candidate Shortages

In many industries, retirees aren’t the only ones leaving. The survey we mentioned earlier also found that that 48% of Gen Z employees are thinking about leaving frontline industries entirely. These employees often cite poor onboarding, insufficient training, and limited career development opportunities as reasons for leaving. Meanwhile, 89% of managers say that Gen Z employees lack the technical skills required.

Taken together, these statistics make it clear that there’s a large skills gap in today’s younger workforce. Employers expect skills and training that young workers do not have. 

The Solution: Build Better Company Training Programs

If the workforce doesn’t have the skills your company needs, maybe your company can train the workforce. Organizations throughout history have used various kinds of learning and development programs to prepare employees for their jobs. While good training is expensive, it pays off in the form of more productive, engaged employees who see opportunities for growth.

3. Uncertainty in Hiring Needs

No one knows what the economy will do in any given year, never mind how your business’s situation might change. Changing demand could mean hiring more or fewer employees. On top of the uncertainty every business has dealt with throughout history, many companies worldwide are planning to reduce headcounts or slow hiring in the next few years due to AI. 

Based on long-term plans, leadership may be reluctant to hire new long-term employees even if they’re needed right now. MIT research shows that most corporate AI initiatives so far have had zero return, but as the technology develops, that could change. And if your company later decides it needs more employees after all, there could be recruiting challenges.

The Solution: Find a Flexible Staffing Option

Working with a staffing agency is a great way to deal with uncertain demand. If you only expect to need employees for a short period of time, you can hire temps and avoid layoffs. And if you end up needing more long-term employees down the road, the staffing agency can help you find great candidates.

4. Managing AI-Generated Applications 

Corporations aren’t the only ones trying to make use of new technology. Many job seekers are using AI-powered tools or “easy apply” features to find and apply for dozens of jobs in minutes. As a result, companies are getting a high volume of applications for each job opening.

Your company’s recruiting team must sort through all these applicants, most of whom likely aren’t qualified. That takes a lot of time right when you’re most likely to be short-staffed. Meanwhile, the longer you take to respond to candidates, the more likely you are to lose top talent to your competitors.

The Solution: Get Help With the Hiring Process

In some ways, recruiting and hiring are much more difficult than they used to be. For many businesses, it makes sense to leave these tasks to the experts at a staffing agency. A good staffing agency will have a large pool of pre-qualified candidates before you even post your job. You can also benefit from their excellent hiring expertise and ability to complete the whole process quickly without disrupting your company’s regular workflow.

Need Help With Staffing in 2026?

LG Resources is an experienced staffing agency in Utah. Over the past decade, we’ve placed over 20,000 employees with over 2,000 local business partners in a wide range of positions, including skilled labor, light industrial, and office roles. Whether you need temporary, temp-to-hire, or long-term employees, we can help you find the right candidates quickly and smooth the entire hiring process.

Request an employee from LG Resources today.