Submitted by Assurance
Despite the country teetering on a return to normalcy again, staffing firms are still struggling with a variety of challenges that have been heightened because of the pandemic.
With clarity and preparation paramount, we recently sat down to discuss some of the current trends in staffing and how the industry will be impacted moving forward. Whether it be the rise in cyberattacks, the hard insurance market, or the tight and unsteady labor market, the staffing industry must adapt and overcome these challenges.
Unfortunately, the staffing industry has become a prime target for cybercriminals. From social security numbers, to addresses and birthdates, it’s no secret that staffing firms hold a bevy of private information that cyber attackers tend to prey on. Layer on top of that the fact that many of us were forced to send employees home to work during the pandemic, which exacerbated a lot of the weaknesses in cybersecurity systems.
As always, a reliable cyber liability insurance policy is extremely important when preparing your firm for an unexpected cyberattack – but it shouldn’t stop there. It’s also critical to have a proven set of cyber policies in place to mitigate exposure. Policies such as regularly testing your system for weaknesses and ensuring that firewalls are enabled and dependable can go a long way in stopping a cybercriminal.
Challenging Hard Market
The hard insurance market has become an issue for pretty much every industry segment that requires insurance – and staffing is no exception. It’s especially prevalent right now when it comes to employment practices liability, cyber liability options and umbrella. As a result, we’re seeing it’s tough to get quotes, capacity is low, deductibles are increasing, and pricing comes back adverse where we have to enter heavy negotiations with the renewal carriers.
There are, however, measures that organizations should consider to overcome such challenging renewals. Here are some steps to follow when faced with a complex renewal:
- Start early
- Communicate with your broker
- Map out a strategy and plan
- Work with a broker who knows the current market and industry
Attracting and Retaining Talent in a Tight Labor Market
With the nation’s economy pushing to reach pre-pandemic levels again, the search for job talent is proving to be a difficult obstacle. Employers all over the country are not only struggling to attract qualified workers, but also with retaining current staff more than ever before. As the battle for attracting and retaining talent rages on, it’s crucial for staffing organizations to differentiate themselves from the competition and win the talent war.
In response to this growing concern in the industry, we have uncovered two differentiators that our clients are doing to separate themselves from their competitors. First off, our most successful staffing clients prioritize themselves on being a “best place to work” employer within their community. Nowadays, job candidates don’t hesitate to research a company online to get a sense of what their culture is like and to determine if it’s the right fit for them. Secondly, our clients have found that effectively communicating their benefit programs with current and potential staff goes a long way in becoming a place that people want to work for. When all things are equal – when pay seems similar, the commute to work is comparable – what is something that really stands out a little bit differently and how are you effectively packaging and communicating your employee benefit solutions?
To learn more about how to prepare for what’s next in the staffing industry, be sure to contact an Assurance staffing expert today.