Staffing agencies are increasingly sought after by companies in all sectors to optimize their hiring pipeline. A partnership like this can help reduce the workload of internal HR teams and smooth out interviewing and onboarding for candidates. Staffing firms face many risks to maintain their good reputation in the eyes both of job seekers and clients.
Risks are everywhere and need to be mitigated proactively. From ensuring strong communication with partners to aligning with the company culture, to adhering to data and cyber protection best practices while handling sensitive information. Here are some things to consider for staffing companies and how they can avoid damaging their reputation.
Maintaining reputation among clients
Staffing companies can fail in a variety of ways to retain and attract new clients. It is said that “It can take months to get a new customer, but only seconds to lose an existing one”. It only takes one mistake to ruin a relationship that you have built with your customer.
Transparency is the key to a positive relationship. When a problem arises, it is important to offer solutions quickly and clearly. It is important to listen to customer feedback to show that you are trying to improve your services.
If an issue arises, it is important to communicate with your client as much as possible. This will ensure that they are confident in the resolution.
In addition, as the wider corporate purpose is increasingly considered when selecting a staffing company, it’s important to maintain ethical standards. Communication that is honest and respectful is important when dealing with both hiring managers and candidates.
Mitigating Cyber Threats
Cybersecurity management can be a source of reputational risk, as well as client and candidate relationships. Cybersecurity threats include the targeting of shared devices and systems by malicious actors, especially those operating on unsecured networks.
A breach of a candidate’s personal data can be damaging to a staffing firm’s reputation. Not to mention the financial penalties for violating data regulations, such as the GDPR or the CCPA.
In an era where hiring software is evolving to meet the demands of more flexible contract arrangements, it’s important to have strong encryption and security protocol in place to prevent cyber threats. Anti-virus software and firewalls are also important security measures. Regular IT audits should also be carried out.
Due to the sensitive data present in staffing IT systems (including personal and financial information), care should be taken when sharing data on-premises or in the cloud.
If the staffing firm fails to take adequate steps to reduce risk or prevent loss, the damages and fines from third parties could be severe.
Talent mismatches
It is important that staffing companies find the right talent for the right job on a regular basis. Organisations in almost every sector are looking to them to close their skills gaps. Staffing firms risk damaging their relationship with clients if they hire candidates who are not suited for a certain role or do not fit the company’s culture.
Aligning a candidate’s educational and skills background with a specific vacancy is a challenge that many employers face. According to a study by the UK National Institute of Economic and Social Research, 30% of graduates are overqualified for their job and 34% work in sectors that have nothing to do with their degree. The mismatch of talent skills has also resulted in wage penalties up to 42 percent, which can further harm the reputation of staffing companies.
In order to close the skills gap and staff shortages in a highly competitive job market, it is important that staffing companies invest more in talent-development programmes. These programs will help candidates be ready for their new roles.
Partnering up with a talent management provider
Collaboration with talent engagement services can help streamline the background check and optimise cybersecurity and compliance practices in all operations.
The experts located around the world are able to provide the most up-to date information on data management and protection regulations. This will give peace of mind for any company offering staffing services.
