Spring into Staffing: How Staffing Firms Can Prepare for Growth this Season

Assessing Key Performance Indicators (KPIs)

Spring is right around the corner, and candidates are starting to emerge from hibernation. For staffing companies, this finishing point of winter and the weeks leading up to spring are typically the end of the slow season. Candidates start to reemerge from March through May after the cold holiday season. Take advantage of these remaining slow weeks by planting seeds to support your growth when things pick up in the spring. 

Understand what Drives your Specific Firm’s Growth

Develop a clear understanding of your staffing firm’s business strategy to highlight what your staff will need to improve upon to keep up with growth. Note the skill sets required to hit these goals that could use refinement, and implement activities and exercises that will strengthen those skills among your recruiters and workforce. Does your team feel that there is room for growth? Are there new technologies that would benefit your operational flow? These are the bottlenecks to note and improve if needed. 

What Drives Staffing Firm's Growth

1. Strong analysis and implementation of your client acquisition process.
   1. Review your performance, specifically when it comes to new clients. Where are you getting your majority of leads? What’s the ROI of your events and ads? Optimize the working avenues, and let go of the ones that repeatedly aren’t yielding anything useful to your growth. Reflect on what it took to acquire your top client and how you did it. Let this information guide your next steps in rebooting your client acquisition as it pertains to current economic and industry trends. 
2. A strong and knowledgeable recruiting team.
   1. Keep your recruiters updated with what is happening in the industry to maintain a savvy and in-the-know team. There are many great webinars to have them sign up for and visit ASA and SIA websites.
3. Identify and Review KPI’s.
   1. Similarly to your client acquisition process, these quieter weeks before the Spring surge are a great time to review your KPI performance. This is another sector to analyze your top-performing attributes, see why it’s working, and how you can implement that strategy into your other KPIs. 

The Top 5 KPIs Your Staffing Firm Should be Tracking

1. Time to Fill
2. Applicant to New Hire Rate/Ratio
3. Cost Per Hire
4. Placement Rate
5. New Hire to Assignment Rate/Ratio

Staffing Industry Surges

Throughout the year, we see a staffing surge from June-September to February-March. A few industries seem to take off every spring; hospitality, construction, and the light industrial sectors fall into this category. On average, construction hires jump by 40% between March and April and taper off heading into Winter. Similarly, hospitality hiring tends to take a dip towards the end of the winter holiday season before picking back up in the Spring in preparation for the busy traveling season in summer. 

Staffing firms specializing in these sectors should be prepared to meet the staffing requirements of businesses in these fields. If your firm wants to expand your horizons, these are the fields to explore now. 

Market Expansion Plan

To keep your edge regarding growth, it is always important to stay on top of industry trends as they compare to your internal evaluations. Review the skills required to meet your business goals and be curious how these improvements could better serve the filling roles in the hot fields this season. 

You will need a business expansion plan before expanding into new markets. What is a market expansion plan? 

A market expansion plan for staffing companies involves strategies to grow their client base, expand into new geographic regions or industries, and increase market share. Here are some key components typically included in a market expansion plan for staffing companies:

1. Market Analysis: Conduct thorough research on your top clients to understand their desired candidates, industry sectors, employment trends, and competitive landscape. Identify potential clients, key decision-makers, and staffing needs in the new market.
2. Competitive Positioning: Identify gaps in service offerings, pricing strategies, or customer service levels that your staffing agency can capitalize on to differentiate itself and gain a competitive advantage. 
3. Target Client Segmentation: Define your ideal clients in the new market based on industry sectors, company sizes, and staffing requirements. Tailor your marketing and sales efforts to address each client's specific needs and preferences. You can do this by finding a common denominator: the desire for top clients, hybrid or remote work, and a strong contractor placement history. Testimonials are fantastic to thread into your sales and marketing approach. 
4. Brand Localization: Adapt your brand messaging, marketing materials, and communication strategies to resonate with the local market audience. Highlight your agency's expertise, industry knowledge, and track record of success in serving clients in similar markets.
5. Networking and Relationship Building: Invest time and resources in building relationships with local businesses, industry associations, chambers of commerce, and networking groups. Attend industry events, seminars, and trade shows to establish your presence and expand your network in the new market.
6. Talent Acquisition: Recruit experienced recruiters and sales professionals who deeply understand the local market dynamics, industry trends, and client preferences. Build a team that can effectively identify opportunities, develop relationships and close deals with prospective clients.
7. Strategic Partnerships: Form strategic partnerships with local businesses, educational institutions, training providers, and technology vendors to enhance your service offerings and expand your reach in the new market. Leverage their resources, expertise, and networks to accelerate market expansion efforts.
8. Marketing and Lead Generation: Develop targeted marketing campaigns to raise awareness of your staffing agency's brand and services among potential clients in the new market. Use a mix of digital marketing, content marketing, social media, and email marketing to generate leads and drive engagement.
9. Pilot Programs: Consider launching pilot programs or offering special promotions to attract new clients and demonstrate the value of your staffing services in the new market. Use feedback from pilot programs to refine your service offerings, pricing strategies, and customer experience.
10. Performance Measurement: Establish key performance indicators (KPIs), such as client acquisition rates, revenue growth, market share gains, and client satisfaction scores, to track the success of your market expansion efforts. Regularly review and analyze performance data to identify areas for improvement and optimization.

Events as a Means to Network

Spring is when you’ll start to see events being announced. Conferences, trade shows, and workshops are places where your team can network and learn about new recruiting trends and technology. Factor these events into your calendar and budget for the upcoming year to stay industry-intelligent and learn about the potential new avenues for growth. If you’ve been searching for events that fall under your staffing firm’s values and expertise, check out our recent post on the different staffing associations and their offerings. 

Staffing Firm's Business Plan

Analyze your staffing firm's business strategy to identify areas for improvement by assessing skill sets needed for growth and bottlenecks, such as technology or workforce concerns. While you're at it, apply the same process to your KPIs. This will support a stronger client acquisition process and overall preparation to launch into a new level of growth. 

Anticipate staffing surges in hospitality, construction, and light industrial sectors during spring. Developing a market expansion plan, including market analysis, competitive positioning, client segmentation, and strategic partnerships, could be worth the time investment. Utilize events like conferences and trade shows to learn about what’s new and popular in the industries you want to expand into this season. 

Spring Ahead: 

As we navigate the complexities and opportunities of the current staffing landscape, arming your firm with the right strategies and insights is crucial for maintaining competitiveness and fostering growth. To this end, the "Spring Into Staffing" series is an essential resource for staffing company owners and executives. This curated collection of insights and strategies is specifically designed to prepare your agency to meet the challenges and seize the opportunities presented by today's market dynamics.

• Spring Into Staffing: Current Staffing Industry Trends dives deep into the latest trends shaping the staffing industry. This essential read provides a comprehensive overview of the economic, technological, and labor market developments impacting the sector, equipping you with the knowledge to navigate these changes effectively.
• Spring Into Staffing: Strategies for Contract Renewal and Growth delves into the nuances of contract renewal as a pivotal strategy for fostering sustainable growth and deepening client relationships. It's a must-read for firms aiming to solidify their market position and ensure client loyalty.
• Spring Into Growth: Setting The Right Goals guides you through setting strategic, achievable goals. By focusing on aligning your objectives with your firm's growth aspirations and the realities of the staffing industry, this resource helps create a clear and actionable roadmap for success.