To view Staffing Hub’s 2020 State of Staffing Industry Growth report to learn about Staffing During COVID-19, visit https://staffinghub.com/2020-state-of-staffing/
WurkNow is honored to be a sponsor of StaffingHub’s annual State of Staffing Report that was published this May 2020. The report and the insights it provides to the current state of the staffing industry are extremely important for staffing firms to make wiser decisions for the future of their business. More than 200 staffing professionals took the survey, where over 70% of them are owners. The report offers great insight into the state of the staffing industry pre-COVID, how the pandemic has affected the industry per vertical, and why 70% of staffing firms expect to emerge stronger after the pandemic. We’ve compiled the key data from the report to help you understand what’s happening today so you can prepare for the future:
Participants of the report were divided into two. Firstly, there are the no-growth respondents who are comprised of staffing agencies that did not experience any growth for 2019. Secondly, there are fast-growth respondents who experienced growth above 11% in the past year. Before COVID-19, both these respondents were dealing with the same day-to-day struggles. Specifically, finding qualified candidates has been the leading issue for agencies in the past three years. Other challenges include leveraging technology, automation, reputation management, and on-demand staffing agencies.
Ironically, before the pandemic occurred, the industry was already exploring new ways to grow. According to the survey, staffing agencies considered key opportunities such as expanding into new verticals, adopting the gig economy, and most importantly diversification.
In the past year, the fast-growing agencies are also those that are early adopters of new technology. These technologies have helped them build better relationships, operate effectively, and accelerate their growth. Compared to fast-growth agencies (71%), only 57% of no-growth agencies considered themselves as early adopters of technology.
Fast-growing firms have prioritized automation and candidate engagement when utilizing technology. Nearly 65% of no-growth firms still refuse to use marketing and sales technology.
In this day and age, relying on manual processes opens staffing agencies up to operational bottlenecks and costly mistakes. Fast-growing staffing firms such as our clients have relied on WurkNow’s workforce management tools to automate their processes and save labor costs.
“Computing work hours takes so much time. With WurkNow, I couldn’t believe how easy it was!,” shared Rosie Benavides, client and branch manager for Empire Workforce, “employee hours are automatically consolidated even with multiple clients it definitely saves me valuable time.”
Staffing During COVID-19
Specific to the pandemic, StaffingHub also conducted a COVID-19 pulse survey that comprised of 334 staffing professionals from March 31 until April 8. Most revenues for all verticals have reported a decline in 2020 such as the contingent workforce (-2.2%), information technology (-10.4%), and industrial (-9.9%). Verticals that saw growth during the pandemic were travel nursing (+16.4%), education (+17.1%), legal (+10%), and insurance (+10.6%).
There are many factors affecting the revenue losses for staffing agencies such as hiring freezes, client shutdowns, and health risks. Compared to the grim predictions of revenue losses for all industries in 2020, healthcare staffing firms are looking at the bright side of things. They are expecting only a 2% loss for the second quarter of 2020 compared to all other verticals expecting a 15% loss.
Based on this data, it seems like healthcare staffing is the phoenix rising above the ashes. Specifically, travel nursing (+16.4%) and clinical/scientific (+14.5%) are feeling the economic demands. Sadly, not all verticals were expected to survive the pandemic. As reported, 45% of staffing firms reported layoffs due to COVID-19 which amounts to almost 30% of the current workforce being lost. To be specific, the education (-48%) and contingent workforce (-38%) experience the deepest losses in revenue.
Staffing agencies have quickly adapted to survive in the age of COVID-19, whether it be initiating painful layoffs or utilizing new technologies. Despite the uncertainty, we are positive that the industry will keep on growing today and for many years to come.