Since assuming the role of president and chief executive officer of the American Staffing Association, I have been devoting significant time considering not only the future of ASA, but also the staffing and workforce solutions industry at large.
As the ASA board of directors discussed at length during its October meeting, the industry is being shaped by dynamic market forces. Macroeconomic events (such as interest rates, tariffs, and the lack of labor churn), technological advances (such as robotics and artificial intelligence), and some staffing firm behaviors (such as taking on less-than-desirable business and slashing bill rates) are all taking their toll.
Macroeconomic forces and technological advances are largely beyond the industry’s control. So, in uncertain times like these, to a certain extent it is understandable why staffing firms are going to great lengths to win and retain business—lengths that they might not consider in better times. However, at the same time, many lament the commoditization of the industry, in which the industry’s services are devalued.
This is a vicious cycle that has been going on whenever business conditions deteriorate. But what if we were able to redefine the industry and position it—in our minds as well as the minds of clients, policymakers, and others—not as an industry of last resort, but rather as part of the economic infrastructure essential to helping corporate America plan and execute on its business objectives? What if the staffing industry was viewed as both a provider of expert workers and consultative services powering America’s economic engine? In other words, what if staffing was viewed as an essential industry?
I think it is possible, and ASA, led by director of public relations Megan Sweeney, has already begun to embark on this journey. But it will take more than ASA to lift the industry to its full potential; it will take those within the industry to adopt and model certain behaviors.
Treat Policy as Maintenance, Not as Crisis Response
Most business plans do not address engaging in public policy. This is unfortunate because, by not making public policy a priority, staffing firms are rolling the dice by waiting to get involved once harmful proposals (legislation or regulations) are introduced. By that time, it could be too late, with passage being a foregone conclusion.
Other companies choose not to get involved at all, relying on ASA to do the work for them. This, too, is unfortunate because, while ASA has a stellar legislative track record, lack of industry involvement makes efforts more difficult.
Instead, staffing firms should make a concerted effort to proactively engage policymakers. Such engagement can help dispel negative and unfounded perceptions, introduce and reinforce the important role the industry plays, and prevent the introduction of harmful proposals. Proactive engagement also would promote the adoption of beneficial policies. The ASA Guide to Grassroots Advocacy should serve as the basis for any such efforts, along with guidance from the ASA legal and legislative affairs team.
Treat Compliance as Part of a Business Model, Not a Burden
Bad actors give a great industry a bad name. They tarnish reputations and their actions are painted with a broad brush such that policymakers, the media, employee rights groups, and some clients consider all staffing firms to be the same.
This presents an opportunity to raise the bar by embracing compliance and ensuring clients understand that using staffing services presents no greater liability than when using their own employees. Staffing firms must invest time and resources and communicate their expertise to clients through consultative services. Those who will be successful are those who will be able to reduce risk for themselves and clients. To do this, companies should
- Ensure their employees become Certified Staffing Professionals through ASA. This certification program provides staffing professionals with the essential employment and compliance knowledge they need. Staffing professionals should also use ASA compliance resources that offer practical guidance and proactive strategies.
- Adhere to the ASA Code of Ethics & Good Practices and make it known within their firms and to their clients that they adhere to high standards for their business operations.
- Make investing in safety a non-negotiable priority throughout the company and clearly communicate that in conversations with talent and clients. Utilize the resources on the ASA Safety Matters web page.
Otherwise, the industry will continue to face
- Safety gaps at work sites
- Compliance ambiguity (co-employment misunderstandings)
- “Race to the bottom” dynamics
- Devalued perception
Build Volatility Into Business Models
Economic volatility is nothing new and it is here to stay. Yet some in both staffing and corporate America are surprised by volatility and are caught off guard or unprepared for prolonged downturns.
Again, this presents an opportunity—for staffing firms to implement their own business planning with assumed volatility and to counsel clients to use staffing partnerships as part of a deliberate strategy—not a necessary evil or reactive scramble. In other words, clients should design for volatility and not improvise around it.
Staffing firms and clients also should measure volatility, not guess at it. They should use consistent indicators to read demand shifts—not act on whims or vibes. These indicators should include ASA data resources, including the weekly ASA Staffing Index, quarterly Staffing Employment & Sales Survey, ASA Data Dashboard, Weekly Economic and Business Outlook (WEBO), and U.S. Economic and Staffing Forecast. Bookmark americanstaffing.net/research and make credible ASA data and analysis part of your regular business operations.
Use Public Relations as an Advantage
There’s an old adage that says: Bad news sells while good news takes the scenic route. That doesn’t mean, however, that the staffing industry’s good news won’t sell; it just has to be positioned correctly.
Working in partnership with the ASA public relations department, staffing firms should collaborate with clients to tell their stories—specifically, how consultative business partnerships are helping clients build and execute on their strategies as well as provide meaningful career opportunities for workers. Rather than just feel-good stories (although the “doing good” angle should not be ignored), these stories can and should be positioned as business playbooks, thus ensuring media interest. Case studies, results, methodologies, and clear articulation of staffing’s value proposition will help elevate the industry’s visibility and importance in the eyes of relevant audiences.
Right now, we have the opportunity to create a better future for the staffing industry. It will take advocacy, standards, compliance, safety, measurement, and public relations—every day, not just during times of prosperity or volatility—and ASA and its members will lead the way.