Eric Friedman is the Founder and CEO of eSkill, a global leader in skills testing and behavioral assessment solutions for employers.
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In the pre-pandemic world, employers were fixated on finding candidates with skill sets that aligned with business objectives and rapid innovation. Organizations worked diligently to identify and understand the in-demand skills of the future. Industry experts relentlessly analyzed and wrote about the “war for talent.”
And then, the global pandemic forced the entire world to hit pause. Even as economies begin to reopen, the staffing industry is in uncharted territory. The roller coaster of talent supply and demand has staffing leaders struggling to understand how to succeed in this time of economic uncertainty. Despite all 2020 has brought, staffing firms are finding ways to succeed.
Adapting To Shifting Demands In The Healthcare Industry
Healthcare staffing firms are increasing revenue by charging higher rates as hospitals in Covid-19 hot spots race to fill in-demand positions, a report by the financial advisory firm Capstone Headwaters found. Conversely, the postponement of elective procedures at the pandemic’s onset “softened demand for surgeons, anesthesiologists, and nurse anesthetists,” the report found.
The July report also found that areas experiencing high infection rates have “fueled unprecedented demand for travel nurses,” resulting in “pay rates far exceeding normal levels.” Upon the release of the report, a staffing firm headquartered in Florida had placed over 1,000 professionals into Covid-19 positions in the preceding six weeks.
In July, revenue generated from travel nurses was up 14% year over year in the staffing industry, according to Staffing Industry Analysts (SIA). In a June report, SIA attributed the growth to demand for travel nurses in states experiencing high infection rates and “the higher pay rates for such assignments.”
Staffing firms that are rapidly shifting focus to revenue-producing segments of the healthcare industry are overcoming the fiscal challenges of 2020.
Capitalizing On Federal Funding For Contact Tracing
Contact tracing is another occupation providing staffing firms with the opportunity for increased revenue in 2020. Prior to the pandemic, “states and localities had about 2,200 contact tracers,” and as of July “there are plans to scale up to about 66,000 contact tracers,” according to a letter signed by the American Medical Association and others.
Staffing firms are capitalizing on the sudden demand and available federal funding for contact tracers. In July, the Pennsylvania Department of Health released a statement announcing a nearly $23 million federally funded contract with an Atlanta-based staffing agency to “recruit, hire, train, and support 1,000 paid contact tracing staff.”
Staffing firms that partner with state and local agencies to obtain federal funding for contact tracing are poised to make gains in 2020.
Securing Contracts With School Districts
As education leaders anticipate an increased need for substitute teachers and paraeducators during the 2020-21 school year, many school districts are looking to staffing agencies to fill the void. The challenge for staffing firms, however, is finding qualified, and willing, substitutes to replace teachers who fall ill.
Of the 7,000 substitute teachers on the roster of one Arizona-based staffing firm, the average age is 56. This is not surprising because retired teachers typically make up a large portion of school districts’ substitute teaching pool. However, older adults are at a higher risk for severe illness from Covid-19, according to the Center for Disease Control (CDC), and may not feel comfortable returning to the classroom this fall. In response, the staffing firm is now focusing its recruiting efforts on a younger generation of workers.
As the new school year begins, staffing firms have a unique yet challenging opportunity to improve the bottom line.
Leveraging Technology
The world of staffing and recruiting is more complex than ever before. As the supply and demand for talent continue to change, staffing leaders need to adapt quickly to turn disruptive obstacles into revenue-producing opportunities.
The era of resume keyword searches and matching job-seekers’ previous work experience to job descriptions is over. As the talent markets become more dynamic, staffing professionals need to develop strategic processes for verifying applicants’ relevant skills, knowledge and aptitude. Although today’s economic uncertainty leaves leaders in the staffing industry guessing what’s next, one thing is clear: It is going to be an interesting ride. Hold on tight.
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