The Crisis of Credibility in the Temporary Staffing Industry
As former industry outsiders (Debra a banker and Regina an attorney), we would like to share with you our unique perspective on the temporary staffing industry.
The first and foremost thing we have observed is that the temporary staffing industry – as a whole – is suffering from a crisis of credibility. The typical staffing firm business plan (large and small) resembles a boardinghouse grab. “Grab as much business - any business – temporary, contingent, retained….admin, sales, IT, accounting, HR, legal, finance……RPO, VMS – and as fast as you can.” If we don’t get it – our competitors will! Leave no client dollars left on the table!”
The other half of the typical staffing firm business plan is to keep costs down internally. That means benefits are not provided to retain temps, internal pay is not competitive (even though maintaining your internal recruiters and their networks is the most valuable asset of the firm), and above all – margins are not revealed to clients/candidates. Quote high, pay low! Maximize that spread!
Your company has an employment brand; shouldn’t your staffing firm have one too?
But being “jacks of all trades and masters of none” is not helping temporary staffing firms attract hard-to-find candidates in today’s tight professional labor market. And cost-saving behavior comes at the price of developing deep candidate networks and earning candidate loyalty.
In other words, their business goals are not helping you achieve your business goals.
It is for precisely these reasons that we intentionally limited our practice to one very narrow area – only HR professionals and only temporary. Period. Continuiti (and firms like ours) are ushering in the new age in temporary staffing – the age of the “super-niche” staffing firm.
“Bucking” the multi-specialty trend – our experience.
The reaction from our multi-specialty staffing colleagues runs the gamut from disbelief to outright scorn, turning away permanent HR searches! Turning away other temp searches! Leaving client money on the table! Revealing our margin! Providing big-company benefits - to temps!
True, super-niche firms have to work much harder to find positions to fill, but when they do – they are more likely to fill them! In our experience, being “super-niche” has allowed us to cultivate unparalleled recruiting expertise and networks in our narrow temporary HR market. We have supercharged our brand and saturated our network with HR professionals who have chosen a contract lifestyle for the short- or long-term! In terms of metrics, this translates into a 92% fill rate (50% within 10 days!) – nationally! As they say, “the proof is in the pudding.”
We predict the logic of this approach will seize the temporary staffing industry. Companies will demand their staffing vendors be specialists and "multi-specialty" staffing firms will oblige and break up into narrow, niche firms. The writing is on the wall for staffing as we know it - and we look forward to discussing this further in future issues!
Continuiti, LLC.
E-mail: info@continuiti.com
