New technology. It is often a sense of excitement and opportunity for staffing firms. Yet, it can also be expensive, time consuming and overwhelming. Implementing new technology can be disastrous at worst and stressful at best for many staffing firms.
So while digital transformation is the third highest priority for half of staffing firms in a recent study, and 80% of global staffing leaders believe it will help their businesses, it’s also one that can either be put off or avoided altogether because it’s often so fraught with complications.
And if you can’t seamlessly implement digital transformation at your staffing firm, how can you maximize your technology ROI?
Together with TalentLaunch’s Jeff Staats, I recently dove into digital transformation and how staffing firms can make “cents” of it (see what we did there?) to get real results. For those of you who missed it, here are some of the biggest takeaways from the webinar.
There are some real challenges for staffing firms when it comes to digital transformation...
We completely understand the hesitation many staffing firms feel over digital transformation. After all, it can be overwhelming to…
> Know which technologies are worth the time and investment
> Understand how to get buy-in and best rollout new technologies
> Figure out how your current technologies, processes and people will work with the new technology
> And that’s just the tip of the iceberg
...and some real opportunities 👍
Whether you’ve measured this or not (don’t worry, we have!), you probably know deep down that not much of your recruiters’ time is spent on high-quality, revenue-related activities.
In fact, only about ⅓ of their days are spent on “human stuff.” The other ⅔ is spent on data entry (ouch!) and prospecting.
This corresponds directly to massive drop-off throughout your talent funnel:
Your clients expect you to modernize
You already know digital transformation is important, and you see the opportunity along with the challenges. Adding impetus to the entire situation is where your revenue comes from…
You have razor-thin margins, but your clients expect that you’ll be providing them with:
> Real-time information
> Memorable experiences
> Personalized communication
> Relevant recommendations
> Use of their preferred channels
Without digital transformation (and -- no added pressure meant by this -- but choosing the right technology partners), it can seem impossible to deliver on these expectations.
Minimize risk and maximize ROI by avoiding critical mistakes
Choosing the right technology is fraught with stress. Staffing technology is not a small investment. Knowing which partners offer the best solution and which solutions you actually need are two of the biggest barriers. In fact, stage fright over making mistakes in those two areas can actually cause you to freeze and not make ANY decisions at all!
Going beyond those, though, there are some critical mistakes many staffing firms make when it comes to digital transformation:
- Missing or ignoring the core business problem. If you don’t fully understand and/or acknowledge the problem(s) you’re trying to solve, it’s incredibly unlikely a shiny, new technology platform is going to magically solve those problems for you.
- Only buying to check a box. If you view staffing technology as a commodity, you are dooming yourself from the get-go. The right perspective is critical.
- Zero measurement or benchmarking. If you can’t measure it, you can’t manage it. In order to adequately manage your staffing technology spend (and maximize your digital transformation ROI), you must know how well that technology is empowering you to solve the problem(s) noted above.
- Using point-solutions to solve singular issues. This is huge. Choosing one-off solutions as band-aids for singular issues in your staffing firm is a one-way path to overspend, overwork and over stress. Consolidating your point solutions is a powerful way to reduce costs and amplify the results of your tech investment.
- Multiple technology costs. Add up those monthly retainers for one-off solutions...the number gets really big, really fast!
- Risk of low adoption. No one (not even your tech team) wants to learn a dozen new platforms and technologies. No one.
- Difficulty measuring success. Is tech vendor #1 really the one driving that increase, or is it vendor #2? Or is it a little bit of both?! 🤯 With one engagement provider (well, us 😬), you reduce or eliminate these concerns, while also gaining a strategic partner who will help you best leverage our technology to define and reach your goals.
Fix your “leaky bucket” with digital transformation
Okay, now it’s time to get to the meat and potatoes. We’ve identified where your recruiter productivity is “leaking.” Here’s how to fix those leaks and leverage digital transformation to grow your staffing firm:
1. Identify the core issues you want to fix.
“Increase revenue” is a good goal, but remember the first core mistake listed above. Digital transformation works best when it solves specific problems or meets specific opportunities. It’s critical that you take a step back to identify which issues need fixing (and will be best addressed with digital transformation). Areas like candidate drop-off rate, low NPS, low redeployment, low retention and more are some common areas to think about at first.
2. Set clear goals at the onset of implementation and rollout.
It can be tempting to barrel ahead once you’ve decided on a staffing technology partner, but resist the urge. As I mentioned above, measurement and benchmarking are critical to ensure you’re getting the most bang for your digital transformation buck.
Bring in key stakeholders to help you define goals (measurable, whenever possible), and then oversee implementation and rollout to ensure you’re reaching (or at least assessing and amending) those goals. This step is so incredibly important to the long-term success of your digital transformation. Without a solid foundation, that building can come down in a hurry (along with the dollars and hours you’ve invested, plus the lost opportunity!).
3. Define clear expectations.
Internally, defining clear expectations at the onset will help avoid disappointment or lack of buy-in that can result from confusion. Your team should know exactly how your new technology will affect their days, how they’ll be using it, and what type of results they can expect if they use the technology as you have defined.
It’s equally important to define clear expectations with your technology partner. Here at Sense, you’ll have a dedicated Customer Success Manager (CSM) who will be with you every step of the way to fully maximize your investment in our platform. Communicating with your CSM and making sure you’re all on the same page will prevent unnecessary delays or disappointments, and help ensure your success.
4. Measure the impact in real dollars.
The right technology truly does pay for itself. Our partners here at Sense have defined and measured significant impact in these core areas (to name a few):
> Time saved: Automation, for example, frees your recruiters to focus on revenue-generating activities, reduces time to fill, and so much more.
> Risk mitigation: The right technology provides sentiment analysis and proactive flagging capabilities to catch no-shows before they happen and cut your rate in half, saving you money.
> Redeployment: Increased redeployment saves acquisition costs and time.
> Loyalty and reputation: A strong employer brand shows up in real ROI dollars, too. Automating database reactivation, requests for referrals, and reviews brings in high-quality candidates faster and at an affordable rate.
Keep an eye on our blog, because we’re going to show you exactly how to calculate these numbers in upcoming posts 👍
5. Get strategic with implementation and rollout.
The right technology can still break with the wrong approach to rollout, adoption, and measurement. It’s important to remember your goals and benchmarks, and work toward key goals and milestones internally to make sure ROI is clear. Remember to think of implementation as a partnership, choose an internal champion to oversee implementation and ongoing management.
Your ongoing investment here pays off.
When you commit to continuous adoption, testing and measurement, you are well on the path to long-term success. And when you leverage a technology partner that meets ALL your needs, that path becomes a lot less scary and a lot MORE defined, realistic and attainable.
Sense is an expert in coordinated automation with omnichannel outreach and engagement among candidates, contractors, and sales teams throughout the talent lifecycle to increase growth, retention, and operational excellence.
Want to know how Sense can drive real ROI for your business? Let’s chat!