While stories like this abound and the recovery is moving frustratingly slow, the staffing industry has a tremendous opportunity to make significant inroads into staffing the trucking, manufacturing, food services, business services, education, and health care industries, all of which are having difficulty filling positions. In fact there are a whole lot more job openings in these areas than actual hires. Staffing firms can make a strong case that they’re equipped to dig up the qualified applicants for these “difficult to fill positions.”

During 2008 and 2009 companies slashed middle-skill middle-wage jobs creating a surplus of people who can’t qualify for highly skilled jobs and don’t want to work for low-unskilled-wages. So, middle-skill jobs are easy to fill, specialized jobs aren’t, and that’s where staffing firms should be focusing on.

Also, the Yahoo! Finance article noted that the extension of unemployment benefits to 99 weeks and a less willingness to move due to uncertainty and credit and mortgage problems also accounts for this trend in more openings and less actual hires.

Anyway, what do you think? What types of positions are you experiencing feast/famine in? Also are you having a hard time getting people off of unemployment?

Email me to share your thoughts, and contact us to learn more about how we’re helping staffing firms make and save money through the implementation of our staffing software and technology.

Everett Reiss
Director of Marketing and Communications
Applied Systems Technology
845-534-7100 X1102
ev@astusa.com
Connect with me on:

• Linkedin: http://www.linkedin.com/in/everettreiss
• Twitter: http://twitter.com/everettreiss

 

By segmenting your clients and focusing your efforts in the right ways, you can migrate your business to higher margins and at the same time dramatically improve client loyalty.

Here are a few fundamental lessons on segmentation from top Client Relationship Management (CRM) gurus:

1. Good service does not retain clients. That’s right – if you provide rock solid good service to a client, statistically, you have a little better than a 50% chance of retaining them as a client. To get that number up to 90%, you have to provide excellent, over the top service or extraordinary value to a client.
2. The average staffing firm does not have the resources to deliver extraordinary value to every client. If you try to give every client excellence, all of your clients will end up with “good service” at best–and that means you have done nothing to lock in your most valuable accounts.
3. To drive margins, focus more resources on your best clients. Segment your client base with business rules that direct your greatest strength towards those clients that offer your organization the greatest opportunity for revenue and profitability. Develop internal contracts of service that clearly map out service standards for target accounts and standards for regular business. (Your service contracts and business process should not dip below good service).
4. Clearly define a profile for target accounts. Your target profile should define a client that aligns with your company’s vision and values and can demonstrate the buying and profit potential you seek.

So how can your firm divide and conquer?
If you are interested in this topic, please contact us for an AST case study showing how a staffing company eradicated client churn and picked up a percentage point on their gross margin. Simply call 800-929-3711 or email dave@astusa.com, and we would be happy to share this information with you.