The staffing industry is changing rapidly. In the face of economic headwinds, technological innovation, and increased competition, the question must be asked: does the old staffing playbook still work?
Recently, TempWorks President Brett Cavanagh sat down with Haley Marketing’s Take the Stage podcast to discuss this very question. In the wide-ranging conversation, host Brad Bialy and Brett touched on numerous topics, from the new difficulties staffing firms are having in cold calling to adaptation strategies for the ongoing push to leverage AI and automation tools.
Watch the video below.
One of the overarching throughlines of the conversation was how to engage talent. As Brett notes, though the industry is changing, the firms that focus on keeping talent in their pipeline are at a significant advantage. By treating top-tier talent like a sports agent treats a star athlete – putting them in the best position to succeed, investing in their development, ensuring consistent assignments – firms can “win the war” for talent, which is always at the heart of staffing.
Building a candidate-first experience also means meeting candidates where they are and embracing their preferred methods of communication. While the days of cold calling may be waning, leveraging automation to ensure consistent communication can give firms an advantage in keeping talent engaged. Leveraging automation can also free recruiters up to focus on more personalized outreach, which can help their firm stand out in a crowded field.
The conversation also touched on the industry as a whole, weighing a “transactional” versus a “consultative” approach to staffing.
Brett notes that in a transactional relationship, staffing firms are forced to compete on price, which ends in a “race to the bottom” for the entire industry. By constantly undercutting competitors, staffing firms are forced to operate on ever-thinner margins, which can lead to taking on less desirable contracts. While this “job orders on the board” mentality may seem good in the short term, it can damage a staffing industry’s brand in the long term, leading to less talent retention and even thinner margins.
For more information on Maximizing Margins, download our free guide here.
The two discussed another hot topic in staffing, AI, with Brad noting that the rise of AI “isn’t destroying the industry, it’s exposing it.” Meaning, staffing firms that are leveraging AI are using it to enable their teams to focus on taking a more people-first approach to recruiting; and the recruiters who are being threatened by automating lower-level tasks are struggling to embrace this new mentality.
The podcast touched on numerous other topics, including:
- How regulation can be good for the staffing industry.
- Why specialization is so important for firms.
- Areas of growth within the staffing industry.
- How different staffing models are seeing success.
In the end, the biggest takeaway is the importance of taking care of people. The staffing firms that do what they can to elevate the candidate experience and take the time to build relationships are the ones that will ultimately win in the end.
Watch the full video: