The Future is Bright for Staffing Firms

Since the world was turned upside down by COVID-19, we’ve all been hoping for a return to normalcy. But what do staffing and recruitment look like in the ‘new normal’?  “Since I have been either operating a staffing firm or providing risk management and insurance services to the Staffing Services industry for 35 years, it has been one of the most resilient and elastic industry in the world, says Bill Nagel, PMC Executive Director of StaffPRO3. “The last seven months have been no different as the Staffing Services industry has navigated the Covid -19 challenge well.”

Looking ahead, we need to continue this adaptation toward more relevant and innovative hiring practices while keeping safety in mind to slow the spread of the virus. In April 2020, the nation’s top staffing firms quickly adapted hiring practices, new employee policies, and future recruitment plans.

As we look forward, it’s important to consider how prepared we are for a potential second wave and stay-at-home orders, and how these will impact not just daily operations but the industry as a whole. There is reason to be optimistic as the future looks bright for temporary staffing firms.

How COVID-19 Impacted Staffing Firms

While 2020 has been a year of disruption, staffing firms have found it particularly challenging to interview and hire candidates while working with struggling businesses. The pandemic impacted the staffing firms in numerous ways as they were forced to:

  • Understanding the CARES Acts and how it impacts the industry
  • Navigating swings in the unemployment rate and the fluctuating demand for temporary and contract workers
  • Facing a possible loss of internal staff
  • Focusing on client and candidate relationships
  • Improving workplace safety to meet COVID-19 protocols
  • Embracing technology solutions for screening, interviewing, and hiring (i.e. videoconferencing, analytics, automation)
  • Adapt to operate remotely internally and externally when placing temp workers

Staffing Industry Outlook is Good

In this new normal, it is essential for staffing companies to continue to adapt quickly. Those that can shift their focus and invest in their future are going to have more opportunities to succeed throughout the trying times.

The hiring priorities of general business at large are without a doubt different. With the second wave looming and the economic outlook still uncertain, businesses are considering alternatives to hiring full-time employees. More are now focusing on part-time, contract-to-hire, and freelance hires. Others will be focusing on new skill sets. In addition, businesses are expanding their reach to include remote working possibilities and will look for new hires that can work well in a self-directed (e.g., remote) environment. With that said, hiring managers must utilize video interviews to assess a candidate’s aptitude presenting over video and how well they have prepared themselves and their surroundings for a virtual meeting.

Resiliency is essential for success– especially throughout the pandemic –staffing firms can benefit in more ways than one if they can:

  • Overcomes hurdles such as a pandemic or economic recession
  • Anticipates changes to create better road maps and solutions
  • Embraces technology to stay relevant and reachable
  • Leverages industry data to make informed decisions
  • Stays compliant with current employment laws and regulations

Although the process for selecting candidates has changed significantly during the pandemic, the core purpose of recruitment – providing organizations with top talent – remains unchanged. While we are unable to predict what the future holds for the industry, knowing how to adapt and knowing that it is possible to succeed in this time creates an optimistic outlook for the future.

Technology has played a significant role in staffing firms handling the pandemic that occurred without any real warning. Efficient usage and utilization of tech has allowed staffing firms to:

  • Embrace remote recruiting, interviewing, onboarding, scheduling, and team management
  • Automate marketing and communications
  • Enhance agent-customer relationship
  • Leverage AI to acquire the right talent faster without bias
  • Use technology internally for remote working, collaboration, and application tracking

PMC provides independent insurance agents with access to StaffPRO3, our exclusive workers’ compensation programs for staffing services. For more information, free consultations or to request a quote, contact our PMC Insurance experts today at 781-449-7744 or


By PMC Insurance Group

Since 1996, PMC Insurance Group has worked to help independent agents grow their client base by offering workers' compensation solutions for a wide array of businesses. As one of the most distinguished workers' compensation wholesalers in the country, we have the tools and resources to help you create coverage programs for both small businesses and large accounts.