Navigating The Top Ten Challenges For Staffing And Recruiting Firm Owners Today

  By Barb Bruno  |    Tuesday June 25, 2024

Category: Columns, Expert Advice, Productivity, Recruiting


This article will provide insights into how economic uncertainty and the gig economy are reshaping our industry, emphasizing the need for you to adapt and implement strategies to manage these challenges. 


Talent Shortage and Skills Gap

  • Stop Posting and Praying:  It just doesn’t work in the current talent driven economy.  Require your team to complete networking and recruiting presentations daily.
  • Upskilling and Reskilling Programs: Offer training programs for candidates to learn new skills or enhance existing ones, making them more attractive to employers.  This is especially effective for light industrial temp firms.
  • Advanced Recruiting Skills to Recognize Transferrable Skills: Identify potential candidates with transferable skills who may not have experience in a specific industry but can quickly adapt to new roles and become an engaged and retained employee.
  • Upgrade Your Candidate Referral Program:  If at least 40% of your placements and fills are not referrals, it’s time to upgrade your referral program.


2. Technological Disruption

  • Invest in AI and Automation: Implement AI-driven tools for smarter candidate sourcing and screening processes.  Automation can help streamline repetitive tasks, allowing recruiters to focus on actions that are “best use of their time!”
  • Continuous Technology Training: Regularly update the training of staff to keep pace with new technologies, ensuring your team can effectively utilize advanced tools.
  • Technology Integration: Seamlessly integrate new tools with existing systems to ensure smooth operations and data consistency.  Make sure your team knows how to utilize your current ATS or CRM.


3. Regulatory Compliance

  • Regulatory Compliance Training: Conduct regular training sessions to keep staff updated on the latest employment laws and regulatory requirements.
  • Watch the New Non-Compete Rulings:  A recent law passed prohibits non-compete contracts from being held up in court.  The jury is out of this one!
  • Join Local, State, and National Association:  They will keep you informed of changes that affect your business.


4. Economic Uncertainty

  • Flexible Staffing Models: Develop a range of staffing solutions, including temporary, part-time, and contract roles, to quickly adapt to changing economic conditions.  If you are only doing flexible staffing and not direct hire, you are leaving money on the table.  If you are only doing direct hires and not flexible staffing you are also leaving money on the table.   


We offer Training that can greatly help you add these segments to your business model.  Use the QR Code to schedule a call with one of our experts.  

  • Diversified Client Base:  Place at different levels within your niche.  Place the supervisors of who you currently place.
  • Proactive Client Engagement: Regularly review client needs to anticipate changes in their staffing requirements.


5. Client and Candidate Expectations

  • Personalized Communication: Use technology to tailor communication and ensure a personal touch in all interactions.
  • Feedback Loops: Establish mechanisms for regular feedback from clients and candidates to continually improve service delivery.


6. Competition from Gig Economy Platforms

  • Unique Value Propositions: Highlight the benefits of comprehensive vetting, support, and post-placement services that your staffing firm provides over gig platforms.
  • Specialized Services: Focus on niche markets or specialized roles where deep expertise and personalized service are crucial.
  • Hybrid Models: Incorporate some elements of gig economy platforms, like faster placements and flexible roles, into your business model.


7. Diversity and Inclusion

  • Strategic Sourcing for Diversity: Actively source candidates from diverse backgrounds through targeted outreach and partnerships with diverse organizations.
  • Bias-Free Recruitment Tools: Implement tools and procedures that minimize unconscious bias during the recruitment process.  Suggest panel interviews.
  • Inclusion Training: Provide diversity and inclusion training for your team and your clients to foster an inclusive culture.


2. Cybersecurity Risks

  • Regular Security Audits: Conduct regular security audits and penetration testing to identify and address vulnerabilities.
  • Data Protection Policies: Develop strict data protection policies and ensure they are followed by all employees.
  • Obtain Copies of your Database:  If utilizing Cloud Technology, make sure you are the only company on the “cloud” and receive copies of your database at least bi-monthly.  We once had a Crypto-Virus destroy nine months of data.


Cost Management

  • Budget Reviews and Adjustments: Regularly review budgets and costs to find efficiencies and reduce expenses.
  • Investment in Automation: Reduce long-term costs by investing in automation to streamline operations.
  • Assign a Non-Revenue Generator:  Have a non-revenue generator review your expenses annually and put out bids.  Bonus this person on the “savings.”


3. Remote Work Dynamics

  • Collaborate Often: Utilize digital tools and platforms specifically designed for remote collaboration of your internal team.  Realize remote workers need to be monitored and managed consistently and often.
  • Mandate the Use of your ATS or CRM: Train your team on the best practices for utilizing your ATS and all resources you provide.  Track your ROI.
  • Geographically Diverse Talent Pool: Take advantage of a broader talent pool by recruiting candidates regardless of geographic location, expanding the scope, and diversity of available talent.


Implementing these solutions will help you and your management team effectively solve current challenges, so your sales and profits can continue to improve.

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