The Staffing Industry Outlook
The staffing industry, like many other industries, was hit hard by the 2007-09 recession. However, in June 2009 while other industries still struggled, the staffing industry began to see gains in employment and sales. According to The American Staffing Association’s research, the industry hasn’t looked back since—growing nearly nonstop since June 2009.
As temporary help sales continue to climb back to peak levels, the staffing industry presents a great opportunity for executives looking to start their own business. In fact, in 2010 annual sales reached nearly $90 billion, and forecasts predict additional growth in 2011.
Before Jumping on the Bandwagon, Here are Five Things to Consider:
While the outlook for the staffing industry is very positive, you should examine these five keys to success, before you jump in!
- Define your target market.
Are you Walmart or Neiman Marcus? Are you going to focus on a specific industry, or become a generalist? There are pros and cons to each that we will examine in our next blog post, but you need to think about these things ahead of time.
- Examine your personal strengths.
Are you new to the staffing industry, or are you a seasoned recruiter? Will business development come naturally, or will you need to hire an experienced sales person with an existing book of business?
- Look at your personal weaknesses.
This is harder than it sounds. Try to be objective and look at areas in which you’re not a specialist. It could be lead generation, maybe it’s recruiting, or are you not a details person? Once you determine your weaknesses, build a solid team of people that excel in these areas and delegate.
- Consider insurance and back office issues.
This is a biggie! Workers’ comp costs are skyrocketing and your coverage (and premiums) can often dictate your industry focus. Evaluate vendors, premiums, user-license fees, etc. Be sure to evaluate true costs. For example, paying a bit more for a more complete back office system could save hundreds of thousands of dollars in the long run.
- Build an efficient recruitment model.
Remember the line, “If you build it, he will come,” from Field of Dreams? Well, it holds true in staffing. In many industries, if you have the talent, the orders will soon follow. The key is building an efficient recruitment model that uncovers “A-level” talent and allows your business development team to focus on sales, instead of filling orders.
- Bonus tip – Contact Nectir.
Nectir has built a staffing franchise model that provides talented and motivated entrepreneurs with the infrastructure and resources needed to launch a highly successful staffing firm. Contact us today to learn about Nectir’s unique staffing franchise model.