Staffing Industry Trends February 2022

February 10, 2022

Here is an overview of what is taking place in the staffing industry for February.
Read about the following:

• A recap on sessions that took place during the 2022 World Staffing Summit
• M&A resources for staffing
• Staffing industry stats
• Access to free registration for a webinar on HR
• How factoring can improve cash flow

World Staffing Summit 2022

World Staffing Summit 2022 hosted by Candidate.ly was held virtually January 24-28! The week was packed with informative sessions led by industry Executives, Owners, and Suppliers.  

Below are 3 key takeaways!

#1. Reskilling and Upskilling are more important than ever in this candidate first market

• • According to Ranstad SourceRight CEO, Michael Smith, 3 HR roles that need to be more dominant within organizations are: Workforce Planning, Reskilling, and Adoption of more Flexibility in the Workplace. As Staffing professionals, how can we support our client companies in these areas?
  • 80% of employees know they need to keep learning, but they don’t know which skills are in demand or how to source the training. Strategize with your clients to support your contractor’s professional development.  
  • Create a learning culture by adopting a skills development platform and seeking specific training to send employees to.   
  • Encourage job shadowing among current employees to help with reskilling and upskilling.  

#2. MSP’s continue to evolve

• • The initial role of the Staffing MSP was to establish cost savings, compliance, and vendor neutrality. In recent years the MSP has started to play a much more significant role in operations and strategy.
  • MSP’s have historically been supplier-funded, but this model is broken. The MSP fee, volume rebates, and quick pay discounts eat away at supplier profit. Check out this blog by KellyOCG’s Matt Yeager:  https://www.kellyocg.com/insights/featured-content/blog/is-it-time-to-terminate-the-supplier-funded-msp-model/We’ll start to see more alternative pricing models such as variable pricing and service-based ale cart pricing.
  • Enterprise organizations need to better budget for MSP services, as we’ll start to see more client-funded programs. https://www.kellyocg.com/insights/featured-content/blog/why-you-should-be-budgeting-for-your-contingent-labor-program/

#3. Technology Best Practices for Small-Mid Sized Staffing Firms

• • Technology for a small staffing firm doesn’t have to be unaffordable. It truly can be a great equalizer. The average small staffing firm has 6-9 solutions in its tech stack.

• • Don’t just randomly buy tech; you need a strategy.  Develop your sales and recruiting processes and determine which technology will help make your business more efficient.    
  • Put together a roadmap. Start by selecting the proper ATS, and make sure that other technology you add will integrate with your ATS.
  • Have a change management process. Get buy-in from those using the automation. Help users understand how it will benefit them and make them more efficient. Proper implementation and training are crucial to success!
  • Technology that Staffing Owners stated they couldn’t live without Candidate engagement tools, including a texting tool like Sense www.sensehq.com.
  • For guidance, reach out to other Owners, look to ASA or your local staffing chapter, or consult with an organization such as https://talenttechlabs.com/.  

Staffing Industry Mergers & Acquisitions

Sheri Tischer, Vice President of Business Development – Staffing at Scale Funding, discusses mergers and acquisitions with Jerry Grady, CPA, and Bryan Besco, Marketing & Business Development Director at UHY Advisors.

UHY guides staffing agencies through the pre-acquisition and due diligence stages, integration management, and merger transformation after the deal has closed.

Watch the video and read the article to learn more about M&A for staffing firms.

 

Learn More

Staffing Industry Stats

ASA Staffing Index Monthly Report, January 2022

Staffing Index Bounces Back to Triple Digits After Holiday Lull
Staffing employment continued its post-holiday rebound in the week of Jan. 10–16.  The ASA Staffing Index rose 4.2% from the previous week, returning to triple digits with a rounded value of 101. Staffing firms cited Covid-19 as a factor limiting further growth. There were 13.8% more staffing jobs compared with the same week in 2021.

Learn More

HR Webinar: Taking Care of Business: Employee Handbooks

An employee handbook is a powerful tool to communicate your organization’s policies and culture and can help set the tone for the entire employment relationship. It can also form the first line of defense in an employment lawsuit or investigation. If your company doesn’t have a handbook, or it hasn’t been reviewed in the last year, this webinar takes a deep dive into the most important policies for your handbook and what you’ll want to consider when drafting them.

Hosted by MineralHR
February 17^th 10am Pacific Time/ 12Noon Central Time

Register

What is Factoring, and How Can it Improve Cash Flow?

Invoice factoring, also known as payroll funding companies, can help small business owners maintain a steady cash flow by reducing the amount of time it takes to receive payment. Watch the podcast below on, Factoring Companies: See How They Can Help Your Business Grow. In this episode on The Hartford SmallBiz Ahead, Jon Aidukonis, Gene Marks, and Kelly Nelson, VP of Business Development at Scale Funding Capital, discuss how invoice factoring companies can contribute to the growth of your small business.