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Is the Staffing and Recruiting Industry Ready for Takeoff Again?

Published: Sep 17, 2020 10:41 AM  |  By Tony Sorensen  |  Viewed: 2656
Category: Expert Advice, Recruiting  |  Tags: Recruiting, Job Orders, Marketing, Staffing, Clients, Search, Hiring, Sales

Unemployment is down, job orders are up, and marketing conversations are happening all the time.

Are we finally out of the weeds after a chaotic six months of uncertainty?

Based on the sheer volume of job orders our sister executive search company Versique has had in the month of September, and the nonstop inquiries for marketing help, we are cautiously optimistic. 

With kids going back to school and rumors of a vaccine around the corner, what can staffing and recruiting firms expect over the next few months? This blog will dive into several promising indicators of growth.

Unemployment Rate Dropping 

The U.S. Bureau of Labor Statistics reported that at the end of August, the unemployment rate fell to 8.40 percent! At first glance, this isn’t a brag-worthy unemployment rate by any means but compared to the 14.70 percent it was at in April, this is worth celebrating. The biggest question now is whether that number will continue to decrease to the record lows we experienced before COVID. While impossible to accurately predict, (knocks on woods), the unemployment rate is on track to continue dropping. 

Marketing Investments

Are you wondering, “why would investing in marketing be a leading indicator of economic growth in the staffing industry?” Well, as a staffing marketing agency that lost a decent chunk of business during the economic downturn, we experienced firsthand that marketing and sales teams are typically the first divisions to be cut in most recruiting agencies. Once these departments are revived or resumed, it’s generally a good sign of recovery.

The good news is that we’re seeing a massive influx of interest in firms willing to invest in marketing initiatives again. Whether that’s hiring staff back or outsourcing marketing to an agency, this is a fantastic growth indicator. 

At Parqa alone, we’ve partnered with more clients than we ever did pre-pandemic — which has been amazing to have so many meaningful marketing growth conversations again. Over and over, we’re seeing that many staffing and recruiting agencies are using this time to invest in their brands, redesign their websites, and unleash digital marketing campaigns. 

 

Payroll On The Rise

Another key indicator of national growth is the payroll rate. In August, the total payroll employment rose by 1.4 million, which follows a pattern of large increases over the last three months. A few of the notable job gains include retail trade, professional & business services, leisure & hospitality, and education & health services. 

In addition, our sister search company Versique is also experiencing a record month in terms of closing new clients and undertaking new projects. In fact, Versique is even ahead of where they were last year at this time.

In closing, 

The pandemic is still out there and anything can happen. Despite that, we are indeed seeing some sturdy signs of growth, especially in the staffing and recruiting industry that has me cautiously optimistic for the remainder of the year.

My sincere hope is that this blog took a little of the “panic” out of pandemic and that your firm is on track to come out ahead.  Are you ready for this next phase of growth? 

Receive a FREE digital marketing assessment: https://parqamarketing.com/contact-us/free-assessment/

Tony Sorensen

Written by

Tony Sorensen

Tony Sorensen is a national staffing industry expert and has spoken at conferences and contributed to publications including EMInfo, ERE, Monster.com, Star Tribune, and Minneapolis/St. Paul Business Journal. Tony is a 20-year industry veteran, and is the CEO of both Versique Search & Consulting and Parqa – a digital marketing agency for the staffing industry. Through digital marketing, Versique now receives over 50% of its revenue from people finding them on Google. He is passionate about helping other staffing firm business owners grow their businesses and experience incredible ROI through digital marketing. Receive a FREE digital marketing assessment: https://parqamarketing.com/contact-us/free-assessment/

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