Many Staffing Services articles, reports, and blogs contain an analysis of enormous amounts of data and prognostication or forecast of what the workplace landscape will develop into this year and beyond. Staffing Services message boards and chat platforms have been discussing or questioning these or related topics for months.
The good news for Staffing Companies is that the industry is growing and those that implement best practices are in a great position to reap the rewards.
The Staffing Services Industry is on the Rebound
According to the US Bureau of Labor Statistics, SIA, and ASA, the Staffing Services Industry is recovering. Here are some of the statistics they have reported since March/April of 2020:
- Based on current trends, there is an overall year-over-year revenue increase of 23%. Staffing Services’ total revenue which dropped 11% in 2020 is projected to grow 12% in 2021, with revenue of more than $152 Billion.
- Nationwide, temporary help usage is on the rise; it has increased from approximately 1.5% pre-Covid numbers to almost 2% today.
- Unemployment has decreased 9% from almost 15% in April of 2020 to 6% in March of 2021. However, there is a broad difference among industry sectors, for example in Q1 of 2021 the unemployment rate in some hospitality and food services was 17% compared to only 1.5% in certain IT jobs.
Best Practices Impact Profits for Staffing Services Companies
There is a lot of data being shared throughout the general Staffing Services media, however, there are some important profit-impacting topics that have not been discussed in much detail. Specifically, staffing company best practices that impact insurance: cost & protection, claims cost, as well as workforce quality and employee care.
The following overview of best practices has proven very profitable for staffing companies in 2020 and 2021 that have implemented, upgraded, and/or adapted to covid-related challenges. These best practices have been successfully applied to all types of staffing companies, customized to fit the characteristics of the specific sectors.
The primary driver of success was the result of an evaluation of safety issues for their employees working from home or remotely. Regardless of the inherent low risk of remote work, work area ergonomics, general conditions of the workplace, activities in the home or on breaks during work hours, errands, etc. were evaluated and proper practices put in place. Below are some of the most important that relate to insurance costs and profitability:
- Corporate Risk Management Philosophies, Practices, Compliance, and Oversight were analyzed, assessed, and adapted in light of covid related challenges. This included adequate Risk Management Staff, Safety Philosophy, Training Procedures, Branch Modification Systems, Loss Allocation Chargeback Programs, Branch / Sales Bonus and Commission Programs, as well as Client Loss Sensitive Pricing Arrangements.
- Risk Management Policies and Procedures were adapted to the COVID-19 risk, as well as a home office or remote work issues for internal staff and temporary workers.
- Hiring Policies and Procedures While the hiring of permanent staff at corporate and branch offices was included, this portion of the evaluation focused on the hiring of staffing workers. Recruiting, pre-employment screening, credential verification, fitness for work, personnel records/applications, interview processes, and orientation, both general and safety/haz-com were some areas of focus.
- Client On-Boarding Process All were re-evaluated at every level. Current “underwriting” or risk assessments and safety considering the current Covid issues. The company’s approval flow, branch compliance, salesforce incentives for compliance, and other operational processes related to sales were also evaluated.
- Accidents, Injury Protocols, and Corrective Measures The policies and procedures related to accidents and injuries of healthcare workers were reviewed. From the moment of the injury or notification to temporary workers being back on the job offer, return to work and injury investigations were scrutinized. Just as important, corrective measures for the prevention of future claims were analyzed.
- Claims Management Processes and Mitigation Processes Internal claims management/handling, as well as its relationship with a carrier’s claims dept., were re-evaluated. How well and to what extent the company utilizes modified or restricted duty to control and mitigate claims also represented a significant portion of this analysis. Mitigation processes of public or marketplace impact regarding all professional liability, general liability, as well as all areas of insurance coverage were evaluated.
- Insurance Procurement Process or Evaluating and Buying Insurance were analyzed with the intent of ensuring the staffing company was working with the right insurance agent, wholesaler, and carrier. They evaluated whether their provider had the most expertise, best pricing, most flexible program or insurance product, and exceptional service they needed during and after the pandemic.
Overall, the outlook for Staffing Services companies is good and companies that implement the best practices above are the ones that will benefit from higher profits.
Contact the Staffing Services experts at PMC Insurance Group for more information about how Staffing companies can achieve optimal profits from their second largest expense. They can be reached at 1-877-PMC-COMP or firstname.lastname@example.org.