How the USA Staffing Industry Can Recover Faster from the Crisis

The COVID-19 pandemic has deeply affected industries across the world, and the staffing industry in the USA is no exception. Before the pandemic, the USA staffing industry's market size was a massive $152 billion, but it has since dropped to $112 billion—the lowest point since 2013. The pandemic has also negatively impacted the annual revenue of staffing companies.

This decline is not surprising given the significant layoffs and downsizing in the USA staffing sector. As of April 2020, job openings across the country had been reduced by 60%, with 25% of businesses temporarily halting their staff requirements just before the pandemic began. According to a survey in March, 39% of companies froze their staffing processes due to COVID-19.

While these statistics are concerning, there are opportunities for the staffing industry to not only survive but thrive during these challenging times. Here are several strategies staffing agencies can implement to accelerate recovery and navigate through the crisis.

Remote Hiring: The Future of Staffing

With the COVID-19 pandemic expected to last longer than initially anticipated, face-to-face interviews have become a thing of the past. Remote hiring is now essential, and staffing agencies need to embrace technology to efficiently source, hire, and manage talent.

To recover from the downturn, staffing agencies must deploy advanced software to attract, screen, recruit, onboard, train, and create work routines for remote employees. Demonstrating technological capabilities to clients will help staffing agencies prove their digital strength and set them apart from competitors. This will reinforce your commitment to seamless remote staffing and show prospective clients that you’re ready for the future of staffing.

Build a Robust Talent Pipeline

While many USA companies take a strategic approach to hiring top talent, staffing agencies should take the opportunity to build a strong talent pipeline for future hiring needs. A solid talent pipeline ensures a smooth recovery as staffing demand picks up again in the coming months.

To do this, staffing agencies must integrate employer branding with their staffing strategy. Using video-based software for interviews, follow-ups, and onboarding is essential for maintaining a strong relationship with prospective candidates. By managing everything from digital screening to paperless onboarding, staffing agencies can help their business clients and turn them into loyal brand advocates.

Invest in Agile Assessment Solutions

Agile and reliable digital assessment tools are vital to improving staffing processes. Investing in digital interviewing and assessment solutions helps staffing agencies make data-driven decisions, streamline candidate evaluation, and prioritize the most qualified candidates for each role.

With the slowdown in staffing demand, there is more time to focus on finding the right candidates. Leveraging powerful staffing software solutions allows managers to assess candidates more efficiently, ensuring only the best are selected for each job.

Focus on Building Deeper Connections

The pandemic has significantly changed hiring strategies. Now, staffing agencies must shift focus from employed candidates to those who have lost their jobs due to market instability. Reaching out to these talented individuals, who are eager to work, can help them re-enter the job market and give them a sense of purpose during these tough times.

To build deeper connections, staffing agencies should tap into professional networks like LinkedIn, capturing talent from diverse industries. Re-deploying experienced professionals into new roles will not only benefit your clients but also motivate workers who have faced hardships to give their best efforts.

How Vars Health Supports Staffing Industry Recovery

Vars Health is committed to helping staffing companies recover faster from the crisis by providing robust staffing solutions. Our platform enables staffing agencies to streamline their processes, manage remote hiring, build solid talent pipelines, and invest in digital assessments—all while enhancing communication and workflows.

With Vars Health’s software, staffing agencies can leverage cutting-edge technology to support their clients and improve overall operational efficiency, helping them recover quickly and adapt to changing industry demands.

Conclusion

The COVID-19 pandemic has impacted staffing companies across the United States, causing a noticeable decline in market size and revenue. However, by adopting remote hiring practices, building a solid talent pipeline, investing in digital solutions, and focusing on candidates who have lost their jobs, staffing agencies can successfully navigate the crisis and emerge stronger.

If you're ready to recover faster and position your staffing business for long-term success, Vars Health is here to help. Learn more about our staffing solutions and how we can support your business recovery by contacting us via email at info@varshealth.com.