Talent and Employee Management Insights Blog

A Closer Look at Sector Growth

The August 2024 jobs report from the U.S. Bureau of Labor Statistics reveals several crucial insights into the state of the labor market. Nonfarm payroll employment rose by 142,000, marking continued job growth, albeit at a slower pace than the average monthly gain of 202,000 over the past year. This deceleration suggests a cooling in the hiring momentum as we progress into the latter half of the year, which overall, translates into more job openings. 

The staffing industry is undergoing transformative changes that are reshaping how we approach workforce management. As we approach Q4 of 2024, it's clear that staying ahead of the curve means embracing key trends in the markets, which we've tried to cover in some of our recent blogs. 

What Wednesdays Economic News Means to Temp Staffing

Staffing Trends amongst Economic Shifts

By leveraging technology and adapting to these market shifts, staffing agencies and HR professionals can unlock new opportunities. This post dives into these critical trends, offering further actionable insights that will help you streamline your staffing processes, elevate candidate experiences, and thrive in today’s complex labor landscape. 

Explore innovative revenue strategies that can transform your recruitment agency into a powerhouse of steady income and growth.

Misclassification Fines Can Prove Costly for Staffing Agencies

Of course, as with any employee contract, the IRS understands that occasional misclassification mistakes can and do happen. However, staffing agencies in the U.S. can face severe penalties for misclassifying workers. These penalties can include fines, back taxes, and even potential legal action, which can result in costly lawsuits and damage to the agency’s reputation. 

At Headcount Management, we know that waiting until the contract deal is closed is too late to optimize results. That’s why we align our resources with your staffing agency, often as soon as you identify a contract client to answer questions, offer insight, and ensure a seamless transition that lowers costs, mitigates risks, and drives bottom-line dollars.

HCM’s Newest Download Helps Staffing Agencies Protect Their Business

At Headcount Management, we’ve seen firsthand how hidden conflicts of interest with an EOR can jeopardize your staffing agency’s client relationships, expose confidential information, and even potentially drain your talent pool. That’s why we’ve recently launched our latest digital guide, Vendor Secrets: Are You Empowering Your Competition? 

AI Tools Help Staffing Agencies Gain a Competitive Edge

Is your staffing agency ready to leverage the power of artificial intelligence? If you haven’t dipped a toe in the AI pool yet, you may want to reconsider — or risk being left behind. Despite its fairly recent arrival and accessibility, AI has already been embraced by staffing agencies and recruiting firms of every size. A recent report from Zippia shows that: 

Recent reports show that:

Adapting to Unemployment Trends

While the September Labor Market Report highlights significant job gains in sectors such as food services, health care, government, and social assistance, when we overlayed last year's unemployment numbers we saw an interesting trend line.  The chart above demonstrates a positive trend in both Professional Services and Hospitality (+16% and 51%, respectively). For staffing agencies, this shift could be a positive indication of where to shift or just a good time to delve into your favorite vertical. Understanding these nuances is crucial for staffing agencies looking to remain competitive and effective in their recruitment strategies.

Effective and compliant payroll management proves an almost constant challenge for staffing agencies of every size. Staffing agencies often assume that managing the process on-premise can be an easy way to control overall costs. However, they quickly learn that internally handling payroll is not as straightforward as they initially believed. 

Congratulations! You’ve found the open opportunity, recruited the best talent, and got official acceptance from your candidate. You’re free to move on to other sourcing opportunities, right?

Not exactly.

As a staffing agency, your primary focus is finding jobs and closing candidates. However, it’s important to remember that the deal does not end with a candidate’s acceptance. In fact, locating the candidate and getting them to a “yes” is only the first step in a successful engagement.