Sheri Tischer’s 5 Takeaways in 5 Minutes

On June 27th, the American Staffing Association held their Q2 2023 State of the Industry webinar. It was an hour packed full of priorities for 2023 and the most recent labor statistics.

Here are Sheri’s Top Takeaways:

For ASA Members who wish to view the full webinar, you’ll find it here: https://americanstaffing.net/webinars/second-quarter-update-for-staffing-professionals-2023/

Takeaway #1: Labor Market Statistics

New Unemployment Claims: The number of new unemployment claims was at 239,000, indicating a positive sign as it remained below levels observed during the Great Recession in 08-09, where claims exceeded 300,000, peaking at 653,000. This suggests a relatively stable job market.

Quit Rates: After experiencing a wave of “The Great Resignation,” the number of employees quitting their jobs topped out in April and has been declining since then. This could signify a shift in employee retention patterns.

Overall Staffing Revenue: In 2022, staffing firms experienced a remarkable year, with substantial revenue growth. Although 2023 revenue is slightly lower than the previous year, it still surpasses that of 2021, suggesting that the industry is normalizing after a robust period.

Takeaway #2: HR’s Biggest Pain Points

An HR survey conducted in April revealed key pain points faced by HR professionals. This data can serve as valuable talking points for discussions with business owners and hiring managers. It allows for a better understanding of HR challenges and possible solutions.

Takeaway #3: Job Security is Key for Candidates

A survey conducted in spring 2023 by Aerotek found that job security is a critical consideration for candidates when accepting job offers. While pay remains essential, job seekers are also cautious about joining companies with a history of frequent layoffs, which can deter potential applicants.

Takeaway #4: Remote Work Disconnect

Employers’ preference for hybrid or in-office work arrangements contrasts with job seekers’ desire for fully remote positions. The disparity between remote work preferences is causing delays in the hiring process, requiring staffing and recruiting firms to navigate this disconnect and guide both parties towards a suitable compromise.

Takeaway #5: Changes in Business Development

Business development faced challenges in 2023, with muted demand in various staffing segments. Buyer behavior became more cautious and indecisive, leading to longer decision-making processes. Here are five sales tips to adapt to these changes:

• Engage with People: No shortcuts or magic bullets, just putting in the effort to connect with prospects.
• Plan Events for Prospects: Host events like Lunch and Learns or Coffee and Connects to create value through education and networking opportunities.
• Provide Market Intelligence: Offer valuable insights during meetings, through social channels, or newsletters, focusing on topics relevant to clients.
• Monitor Effort Metrics: Emphasize effort metrics over results, tracking activities such as candidate interactions, prospect engagement, etc.
• Hiring Internal Team Members: Look for qualities like grit, hunger, energy, creativity, and curiosity when hiring for staffing positions.

In conclusion, understanding labor market statistics, HR pain points, candidate preferences, and adapting to changes in business development strategies will be crucial for businesses to succeed in the dynamic landscape of 2023.