In cutting back on hiring of new staff in order to reduce the number of employees, agencies also reduced the influx of new people with the new competencies needed to sustain excellence.
Agencies reduced new staff hiring, which decreased inflow of new people with new competencies. 
mnli hypothesis: Agencies reduced new staff hiring, which decreased inflow of new people with new competencies.  premise: In cutting back on hiring of new staff in order to reduce the number of employees, agencies also reduced the influx of new people with the new competencies needed to sustain excellence.