Technology presents challenges, threats and opportunities to staffing firms in 2018 and beyond.
One thing is abundantly clear from the glut of articles and information that was pumped out by staffing industry trade publications in 2017: The future is now. Staffing firms must officially be in the technology business or risk catastrophe in the months and years ahead. From how talent is acquired to how it is deployed and tracked, there is no shortage of solutions in the greater staffing marketplace; so many, in fact, that it can lead to confusion and ultimately paralysis.
Staffing company leaders can ill afford decision paralysis at a time when the workforce is changing by the minute. Conversely, making huge investments into technology that might be outmoded in an instant is a risky proposition. One of the reasons RINGO has been a high-tech leader in the staffing industry is our vendor-neutral approach. We offer staffing firms the ability to roll out contingent labor management software to their clients without having to invest tens of thousands of dollars.
"...RINGO positions your firm as more of a strategic partner than simply a transactional vendor."
Being able to offer a technology solution to help your clients track and manage contingent labor alone is a huge benefit. But there are important ancillary perks to consider as well. Not the least of which is the ability to reduce your Days Sales Outstanding and improve cash flow. The RINGO platform provides keen insight into your client’s labor spend that can help guide their own cash flow decisions, reduce overtime and improve internal processes. In this way, RINGO positions your firm as more of a strategic partner than simply a transactional vendor. Taken together, these benefits increase your value proposition and help increase client retention, which is more important than ever in the so-called New Economy.
As we head into 2018, expect the onslaught of information related to the “Human Cloud” and the disintermediation of the staffing industry to continue. According to the report from Staffing Industry Analysts (SIA), the “Human Cloud” is “arguably the fastest-growing segment of today’s technology fueled gig economy…. With total human cloud spend reaching between an estimated $47 and $51 billion dollars globally, human cloud revenue nearly doubled in 2016. While the majority of that spend was generated by business-to-consumer human cloud companies, the business-to-business segment of the human cloud grew approximately 20% year-over-year.”
"Thus, staffing companies must innovate to remain at the front of that trend."
The “gig” economy and the connectivity between organizations and freelancers is not a new trend, but it is gaining steam. The larger point to consider is the latter sentiment expressed above, which is that business-to-business talent acquisition marketplace is rapidly expanding. Thus, staffing companies must innovate to remain at the front of that trend. This was powerfully illustrated by the cover story in the year-end issue of Staffing Success as they examined 12 distinct verticals (and 20 subverticals) to help recruitment companies “target specific technology pain points and prospective solutions.”
Amidst this vibrant and confusing landscape, the most important thing your staffing company can do is commit to tackling technology head on. If you are struggling with decisions related to technology solutions, contact RINGO to get started immediately and protect your flank. Securing this option first will get your company in the game and give you the time and energy to focus on the other critical considerations in front of you.