The staffing industry is facing a unique challenge with the current economic downturn. It's not enough to simply offer traditional temp help, temp to hire, or direct to hire services anymore. Companies must rethink their business models in order to remain competitive in a challenging market. David Searns, a thought leader in the staffing industry, recently shared his insights on how companies can level up their marketing strategies and better serve their clients in a down market. In this article, we'll break down his key points on how companies can rethink their product, price, and place to stay ahead in the staffing game.
The first thing companies need to consider is what they can do to rethink the product or service they deliver. It's not enough to just offer traditional staffing services. Companies need to find ways to solve their clients' problems using staffing as a tool.
The next aspect to consider is pricing. David suggests that pricing is not just about what you charge, but how you charge. The traditional staffing model is based on a markup percentage of a placement fee, but there may be other payment models that could work better in a down market. For example, some companies have switched to a subscription service for recruiting or have offered RPO services for direct hire staffing.
Lastly, companies need to think about the place, or where they sell and recruit from. With technology advancements and a global market, it's possible for even small companies to be a global player in the staffing industry. The key is to think globally and act locally, leveraging technology and a global network to reach more clients and candidates.
Impact of Marketing:
Why does all this matter? According to David, companies that were aggressive in their marketing strategies during the last big recession in 2009 saw a four and a half times greater market share gain compared to their competitors who cut back on marketing. These companies also saw sales decline less and recovered two times faster than the industry as a whole.
Don't Make These Mistakes:
In a down market, it's important to avoid making certain mistakes that could harm your business. Don't cut marketing, as going dark could give the impression that you're out of business. Don't slash prices, as clients may not let you raise them again. Don't do nothing and hope for the best, as a proactive strategy is crucial to recover quickly. And don't jump into a new market without doing your research, as this could lead to failure.
Choose NOT to Participate:
Finally, David encourages companies to make a conscious decision to choose not to participate in a down market. No matter how bad the market may seem, companies are only dependent on their own actions and the clients they find. He cites Jack Welsh's famous quote, "never miss out on an opportunity like a good recession."
David has a new eBook - "Level Up: A Guide to Marketing for Staffing Companies in a Down Market". If you're interested, you can download a copy from https://www.haleymarketing.com/level-up/
In conclusion, the staffing industry is facing unique challenges in a down market, but companies can rise to the occasion by rethinking their product, price, and place. By avoiding common mistakes and adopting a proactive marketing strategy, companies can level up their game and better serve their clients. Don't miss out on the opportunity to grow your business in a down market, start thinking differently today.