The effects of the coronavirus in early 2020 led to an economic downturn. With nonessential businesses temporarily closing their offices and millions of employees working from home, circumstances were drastically changing every day. Like all businesses, this has had adverse impacts on staffing companies. Because the overall demand for services decreased, staffing providers had to alter course to continue operations. However, while certainly specialty skills may differ, in general staffing companies were last to get hit and seem to be the first ones to come back.
Here are some lessons staffing companies learned from the coronavirus pandemic.
Certain Strategies Did Not Work
There were marketing and sales strategies that did not work for staffing companies. Order taking was ineffective. Although increasing call quotas may have temporarily boosted sales, the process typically could not be sustained. Similarly, price-cutting did not work. Even if additional orders came in, they often came from the worst clients, and profits were eliminated. Keeping the same processes in place was ineffective. Because the economy changed, staffing companies had to change. Madison Resources can assist in providing additional guidance to staffing companies on how to pivot their strategies to successfully navigate through COVID-19.
Other Strategies Were Effective
When the overall demand for staffing services decreased, certain marketing and sales strategies for staffing companies successfully brought in business. Because clients were facing business challenges similar to those of staffing companies, clients needed ways to reduce costs and increase revenue. Staffing companies whose sales team provided solutions to improve efficiency, raise productivity, eliminate capacity constraints, and lower labor and associated personnel expenses were the ones that continued operations. The staffing providers may have increased their marketing to include prospects that were not familiar with them. By demonstrating the value provided, many were able to take away business from the competition. Some staffing companies focused on locating hard-to-find talent to fill challenging roles. Staffing providers that worked with Madison Resources were provided additional solutions as well.
Focus on Solving Client Problems
Staffing companies that focused on selling ways to reduce customers’’ current expenses and help their organization increase revenue typically continued operations. Many staffing providers offered volume discounts, deals on service combinations, and extended financing terms. They reached out to companies they wanted to work with while avoiding those that could not afford their services. Staffing companies asked customers to refer them to others in the industry. They followed up with previous leads and offered new solutions to manage their staffing challenges during the economic downturn. Staffing providers pointed out how using temporary workers could reduce labor costs by replacing employees not being used at full capacity. Many staffing companies talked with Madison Resources for additional advice.
Make Madison Resources Your Business Partner
Whether you need funding, technology, back-office support, or advice on growing your staffing company, we are here to help. Reach out to us today.