From Commodity to Trusted Partner: Strategies to Avoid Becoming Expendable in Staffing
This article is based on a conversation between Brad Bialy and Kim Henderson on the Take the Stage podcast, presented by Haley Marketing.
Let's be honest...too many staffing firms fall into the trap of acting as mere transactional vendors. They chase job orders, place candidates, and move on to the next opportunity—creating a cycle where they are seen as just another commodity, easily replaced by the next staffing firm offering a lower rate. But as Kim Henderson, Managing Director of Cobalt Compass Solutions, emphasized in her conversation on the Take the Stage podcast, presented by Haley Marketing, there's a better way. Firms that aim to become trusted partners, rather than expendable vendors, set themselves apart and ultimately become indispensable.
So, how do staffing firms make that leap? Kim shares a roadmap, packed with strategies that can elevate a staffing company from "necessary evil" to a strategic business partner—one that clients rely on for more than just placements.
Focus on Delivering Value Beyond Placements
While filling open positions is a primary objective, it’s only the entry ticket to deeper, long-lasting relationships. To rise above transactional status, staffing firms must continually look for ways to deliver value beyond the initial placement.
"Getting them the right candidate is the seat to the table, but staying at the table...requires adding value and being an industry specialist," says Kim. Adding value could take many forms: offering market insights, conducting webinars, or sharing thought leadership content on industry regulations and trends. Clients today are looking for staffing partners who can not only deliver talent but also educate them on the broader hiring landscape.
Kim suggests engaging in deeper conversations with clients to uncover what they consider valuable. For some, it might be benchmarking data on industry salaries; for others, it might be an introduction to new technology or best practices in recruitment. Don’t assume—ask.
Develop Industry Specialization
One of the recurring themes in Kim’s discussion with Brad was the importance of focusing on a niche. She used the analogy of a specialist doctor: “You wouldn’t go to your family doctor if you needed brain surgery,” Kim pointed out. The same logic applies to staffing firms.
Generalists—those who claim to staff for any role in any industry—are quickly becoming obsolete in a world that values deep expertise. Clients want to work with firms that understand their unique challenges and have a proven track record of success in their industry. Specialization not only gives you credibility but also allows you to speak the client’s language, offer strategic advice, and, ultimately, become a trusted partner.
As Brad summarized it, “The more that you can be seen as the expert in that space, the better.” By focusing on a narrow target market, you can build a reputation that clients recognize, trust, and turn to again and again.
Ask for (and Act on) Feedback
Another way to build trust and loyalty is by regularly soliciting—and acting on—client feedback. But as both Kim and Brad observed, many staffing firms shy away from asking their clients how they’re doing.
"88% of individuals will give you feedback if prompted to do so," Brad notes. “The challenge is we don’t ask. We’re too afraid to ask. We think it’s too self-serving.”
Kim adds that gathering feedback and implementing changes is a critical step in moving from being a transactional vendor to a true partner. “What you’ll learn about maybe not only yourself but about your company...are opportunities for us to capitalize on,” she says.
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The key is to approach feedback with an open mind and a willingness to improve. Make it part of your process to ask, “How are we doing?” and, more importantly, “What can we do better?” This information is invaluable—it can help you address minor issues before they become major ones, tailor your services to better meet client needs, and demonstrate that you are invested in their success.
Map Out a Consistent Client Experience
Creating a consistent, positive client experience from day one is essential. As Kim notes, the early days of a new relationship can be rocky if there’s no clear process for onboarding, service delivery, and ongoing communication. Every interaction a client has with your company should reinforce that you’re a reliable, strategic partner.
“We need to sit down thoughtfully at the beginning of a relationship, map out all the processes that are needed, and inform the customer how we’re going to handle it,” Kim advises. Establishing a clear roadmap and setting expectations not only helps you deliver on your promises but also builds confidence with the client.
Having a consistent client experience also ensures that your value is felt throughout the entire organization—not just in the department you’re directly supporting. For instance, a firm that starts out filling IT roles can become a trusted partner across finance, operations, and marketing if they demonstrate their capabilities effectively and consistently.
Expand Your Client Share
It’s not enough to fill a few positions and consider the job done. As Kim cautions, if your firm only places 12 people a year in a major client’s organization, you’re vulnerable to being replaced when the client revisits their supplier list.
“What’s that mean? It means you’re expendable, right? You’re not relevant. You’re not significant,” Kim says.
The goal should be to increase your share of business within the client’s organization, making your firm a significant contributor to their success. This requires understanding the total staffing spend of the client and systematically expanding your presence within different departments. Use your initial successes to open conversations with other business units, showcasing your track record and building out a broader partnership.
Have the Courage to Say No
Finally, becoming a trusted partner sometimes means walking away from business that doesn’t fit. When a potential client’s requirements don’t align with your capabilities, it’s better to be upfront and honest.
“Partnership is shared risk, shared reward,” says Kim. If the client’s expectations can’t be met, it’s okay to say, “We’re not the best partner to service you right now.” This kind of transparency not only saves both parties from future frustrations but also sets a precedent for trust and respect.
“By the way, here’s who I can refer you to that can go and do the right job for you,” Kim adds. Showing a willingness to walk away rather than forcing a fit can actually lead to clients coming back to you when their needs better align with your strengths.
It’s About the Long Game
Transitioning from being a transactional vendor to a trusted partner doesn’t happen overnight. It takes patience, perseverance, and a focus on the long game. As Kim and Brad emphasize throughout their discussion, the best staffing firms are those that think strategically, invest in their client relationships, and constantly look for ways to add value.
For staffing firms willing to make this shift, the rewards are well worth the effort. Because when you become a trusted partner, you’re no longer just filling job orders—you’re making an impact that clients can’t imagine being without.
I Help Businesses Build Exceptional Teams for Lasting Success | CEO & Founder of StaffEase | Staffing Consultant & Specialist | Recruitment Consultant
1 个月Key word in this post: PARTNER! I think a lot of agencies say they are a partner but act transactional; hence the disconnect to clients. Bring value, and not just when they have more orders for you or have a new location: be consistent! Great episode and value Brad!
Staffing Industry Trainer & Consultant | ?? Elevating Staffing Professionals through Training ?? Driving Growth via Operational Transformation | Speaker
1 个月Brad Bialy It was great strategizing on the topic of account penetration with you! It's key to ask the questions about the whole hiring opportunity and set your sights on meeting all leadership where we can provide our services. Don't declare victory after filling 1 job!
CEO at BARQAR & Chief Strategy Officer at Haley Marketing
1 个月Good insight!