The current economic landscape is fraught with uncertainty. In light of persistent inflation, a looming recession, and a volatile labor market, many businesses are choosing to eliminate portions of their staff. For instance, tech giants are shaving off their workforce by the tens of thousands and tech analysts say this trend could continue into Q1 and beyond. Staffing firms, whose purpose is to help companies fill open positions, could in consequence experience a decline in business. Despite this somewhat bleak prognostic for 2023, staffing firms can ensure the continued success of their business by strategically planning their next steps. Here are some tips: Tip 1: Be financially prepared Being adequately prepared for a recession can reduce the fear, anxiety, and losses that come with it. Know which resources (such as lines of credit, grants, and business loans) are available to you should you need them. It is wise to secure financing before you need it. Tip 2: Gather relevant data In the business world, data is key. Being data-driven helps staffing firms establish baselines, benchmarks, and goals to keep moving forward. In times of recession, effective data collection and analysis will allow you to direct scarce resources to where they are most needed. It’s important to know what you are doing well and what could be improved. For this purpose, you can use a job posting platform that gives you 24/7 access to your data and analytics. Tip 3: Keep up with trends Read about industry trends and labor market shifts to see how you can overcome potential challenges and make the most of a situation. For example, according to a recent Talent.com survey, a majority of workers said they would switch their industry of employment if a recession impacted their current industry. This trend can be beneficial for your business, as an increase in the number of people looking for new opportunities can mean more activity for staffing professionals. Combine your research on the labor market with frequent competition audits to get a comprehensive view of the ever-evolving staffing ecosystem. Tip 4: Diversify your client roster Don’t put all your eggs in the same basket. Diversity is your strength. If you are only serving one sector, you could take a larger hit. Forming strategic alliances with companies operating in different industries can greatly reduce the impact of an economic downturn. Tip 5: Work with established names Large companies tend to have more experience and more resources to combat the declines in revenue and earnings brought about by a recession. Be careful when choosing new partners, a recession might not be the best time to take a chance on smaller, riskier clients. Tip 6: Build a strong team Make sure your boat is filled with captains who are ready to weather the storm with you and keep your staffing firm afloat. Having experienced staffers among your ranks will ensure you can cover multiple skill sets during hard times. You can use a comprehensive recruitment platform with robust job distribution features to find your special people. Tip 7: Focus on automation When the economy is declining, time management is crucial. Automating the most repetitive parts of the hiring process can go a long way toward reducing the time spent analyzing data and pondering decisions. With programmatic advertising, for example, a staffing firm can buy, place, and optimize job ads in high volume and for a lesser price. Additional key benefits of programmatic advertising include creating efficiency and helping with bandwidth issues. Tip 8: Reinforce your reputation In the past, recessions have caused countless companies to go out of business. Your clients are aware of this possibility and want to know that you are still thriving. You want to be perceived as a stable and adaptable staffing firm, despite what challenges a volatile economy may throw your way. To ensure client trust and loyalty, make sure to clearly communicate your ability to meet clients’ needs in your marketing and sales material.
