Tips for Staffing Agencies to Create a Competitive Advantage

The staffing industry employs 15 million people annually.

Today, it is a $174 Billion industry and one of the leading B2B businesses in the US. Whenever HR professionals face challenges in employment, they turn to these agencies for skilled employees. And why shouldn’t they? So far, the staffing industry has seen faster growth (3.4% in 2019) than even the GDP of the country (2.3%).

Although its growth has been stagnant owing to COVID-19 this year, the employers are still reliant on the industry. To meet their expectations, the staffing companies need to scale up and adapt to the new normal.

Once normalcy is restored, the competition will increase. Already, large enterprises as well as small companies have started hiring remote workers to resume their operations. The unemployment rate has fallen to 7.9%, and more jobs are being created.

For instance, Amazon is planning to hire 100,000 workers to meet the rising eCommerce demands. Other companies, like Nestle, Ceridian, and Hensel Phelps are also on a hiring spree. Naturally, companies like these will turn to the staffing agencies for such mass recruitment.

As a staffing agency owner/manager, you may follow the suggestions given below to get a competitive edge.

Focus on long-term goals
The current situation is temporary, and it will pass. But some of the trends that have disrupted the industry will not fade away any time soon. For example, the rate of increase in remote working is likely to be the same in the post-pandemic world. Gig workers will continue to dominate the employment scenario. As a result, staffing agencies need to rethink their strategies regarding their inclusion in the workforce.

By the next few years, the demand for flexibility will be at its peak. You may create a bridge between the temporary workers and the employers to serve both their needs. However, this is just one long-term goal. Focus on the others as well, like technological integration, improved training and mentoring, outsourcing, and investment.

Also Read: COVID-19 - 6 Challenges Staffing Firms Are Likely to Face

Extend your employee database
As more talented people start looking for lucrative opportunities, you may find your employee database increasing. Go the extra mile to seek talent from different sectors in the industry. Attend staffing webinars, and hold conferences and tradeshows to create an extensive database of skilled and experienced workers. It will also help you streamline your staffing efforts and get your clients what they need. You may think of active networking on social media to increase your brand visibility.

Also Read: Gig Economy and Its Impact on Staffing Firms

Balance client and employee needs
The success of a staffing firm depends not only on its clients but also the potential employees. Prioritizing and balancing both their needs will help you get an edge over your competitors. If more people join your network, you will get the opportunity to deliver optimum performance and improve your company’s credibility.

Hold regular discussions with your clients to understand their requirements and train the potential employees accordingly. You may need to improve screening and background researches as well to ensure the best fit for their organizations.

Focus on business promotions
Go out and about with your brand promotion to attract the eyes of potential clients, as well as employees. Advertise your business on social media, share success stories, and come out ‘live’ on your business profiles. Work on the ‘connect’ factor to help employees believe that you can fulfill their dreams.

You may also need to build trust with large enterprises by giving them an idea about your operations (screening, training, and mentoring processes). It will create transparency that is appreciated by most companies looking forward to hiring the best talent.

Develop a responsive team
Create a responsive workforce to follow-up with customers through emails, chats, and videos. Client communication is essential for a successful staffing agency, as the requirements keep changing. Ask the team to stay vigilant on such matters and respond as soon as possible. Be ready with the ‘next steps’, as soon as you get a go-ahead. If you are responsive, up-to-date, and available at all times, chances are, the clients may not look anywhere else for recruitment help. You also need to respond to feedback and reviews on social media to create an open channel for communication.

Outsource unimportant tasks
A staffing agency does not thrive on office and accounting tasks. However, you cannot ignore these tasks as well. Better outsource such tasks to third-party expert agencies and focus your energies and efforts on generating revenue. It will help streamline your operations and create a hassle-free work environment as well.

Wrapping it up
As a recruiting firm, you may need to be on your toes at all times. Be approachable, available, and upfront with your clients and potential employees. Make them believe in you and depend on your strategies to fill their vacancies. Collect their feedback and ask for suggestions, whenever possible. Such an attitude will create a positive impression of your brand and make way for long-term relationships. Once you are in the good books of your clients, they will be less likely to make a switch.