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How Staffing Agencies Have Mastered Business Convergence

Convergence occurs when two entities move in sync so that they come together. Sometimes, the two parties in question can be surprising: for example, small businesses and staffing agencies. At first glance, they might seem not to have much in common, but business convergence indeed occurs with them, thanks in large part to staffing firms who have taken initiative.

Convergence

Here is the main point at which staffing agencies and small businesses converge: the owner of a small business hires temporary workers from a staffing agency for added flexibility. Benefits to the small-business owner include the ability to get skilled staff and temporarily expand operations for a slimmer cost, particularly in areas such as health care and hiring.

Similarities Leading to Convergence

This business convergence does not happen in a vacuum. Staffing agencies and small businesses share many similarities that make convergence all but inevitable. In fact, many staffing agencies are small businesses themselves. Both staffing agencies and small businesses: – Operate in markets that are increasingly competitive; weak entrants get elbowed out – Must have long-term plans for survival – Position themselves to deliver unique value

Staffing Agencies Put Themselves in the Mindset of a Small-Business Owner

To gain business convergence, staffing agencies have had to get smarter, quicker and more efficient. Some of the most successful firms find a niche that has yet to be fully explored, and make it their own. For instance, they may study small businesses, and identify three top areas of expense or, to name another example, time wasters. The next step would be to innovate ways for the agencies to help small businesses cut these expenses or find more time. Something that doubles as a significant business expense as well as time gobbler is payroll. Many business owners are not well versed in accounting, and even if they are, do they really have the time to sit down every day to focus on payroll? Their attention needs to be elsewhere for the small business to expand and continue innovating. Thus enters a specialty staffing agency, or an agency offering several specialized services. Such an agency markets itself as staying on top of payroll so that small-business owners can do what they do best.

Value Propositions

In order to achieve business convergence with smaller firms, staffing agencies frequently turn to a few value propositions. The first is audience outreach. Does a small business want to reach more people, perhaps even folks on the other side of the country? A staffing agency with multiple locations or partnerships may be capable of supplying personnel in the areas targeted for expansion. Alternatively, suppose a small business wants to hire Spanish speakers as soon as possible. Staffing agencies can help with that second area of supplying workers who have certain areas of expertise. Many staffing firms specialize in areas such as payroll services, while others focus on supplying workers for certain types of employers. These workers may include nurses for hospitals, but where a small-business owner is concerned, a huge value boost comes with staffing agencies who provide designers, marketers and lawyers, among other specialists. Such support enables a small-business owner to get a short-term project running quickly and without much fuss. Other value propositions that staffing firms offer include professionalism; they work with small and large businesses alike to ensure the business is best represented. They also work to minimize the stress on a small business. With a staffing agency as a partner, much of a small-business owner’s recruiting and hiring concerns go away. Staffing firms take care of all of that, and if the matchup works out, the small business often has the option to hire a worker for a long-term, permanent position.

Ahead of the Curve

In some cases, staffing agencies achieve business convergence by anticipating business owners’ needs rather than waiting to analyze them. For instance, when a staffing agency notices flaws in popular accounting apps or software, it can develop a product of its own that it sees as superior. What an excellent edge to bring in more clients. Economic woes have necessitated much of this streamlined focus for staffing agencies. Just like the businesses they work with, they must boost productivity, expand services and concentrate on the most lucrative revenue streams. One way they boost productivity is to automate many administrative tasks and to have recruiters specialize in certain types of employersï—small businesses, for example. Expansion, or diversification, of services is particularly helpful, as it helps staffing firms solve issues related to cyclicality. Revenue is more predictable year round, and diversification opens up more streams. As you look for ways to make all-star hires, whether temporary or permanent, take advantage of the resources here at Mighty Recruiter to learn the best ways to do so.

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