Differentiating in Staffing with David Falwell
00:00:00
Speaker
What separates growing staffing agencies from everyone else? In today's market, a great sales pitch isn't enough. You need to prove to employers why you're different. In this episode of Aviante Digital Edge, David Falwell, president of Staffing Referrals, is back to discuss how staffing firms can turn their data into a competitive sales advantage that their competitors can't easily replicate.
00:00:22
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So when you're heading into a sales call, what's the most valuable thing you can bring? Box of donuts or some really insightful data? Tune in to find out.
Gifts vs. Data in Sales Calls
00:00:38
Speaker
Welcome to the Aviante Digital Edge, I'm Chris Ryan. The last time I spoke with David Falwell, the president of Staffing Hub and CEO of Staffing Referrals, we explored the concept of lifetime value of talent. And more recently, we talked about how to build programs that drive talent loyalty.
00:00:55
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Very important stuff, but maybe it seemed a little academic to some of our listeners. But now it's time to talk about something that really matters to the staffing industry, and that is revenue generation.
00:01:07
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And in our last discussion, David hinted at how talent data, when it's managed properly, can be a strong competitive tool to differentiate your agency from others.
Insights from Staffing Hub Survey
00:01:18
Speaker
So David, it's nice to have you back. Great to be back, Chris. And the last time we talked about the academic end of the conversation, today I'm super excited to jump into the operators end. That's great. So before we talk about sales, I understand that Staffing Hub is coming out with its new 2026 survey. Congratulations.
00:01:37
Speaker
So I have to ask, can you give our listeners any hints as to what might be coming out in the Staffing Hub survey? Are there any big surprises or unusual changes you can tell about it?
00:01:50
Speaker
Absolutely. The survey will have all of the benchmark data that it always does. You'll be able to see how you compare, but there are three findings this year that separated the agencies that grew from the ones that shrank. Number one was operational discipline.
00:02:04
Speaker
We measured it on a seven point scale, weekly KPI reviews, weekly sales pipeline, et cetera. And what we found is that those that had The better operational discipline, meaning they were doing more of the activities tied to strict standard operational discipline were more likely to be growing.
00:02:23
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Second, the AI depth, not AI presence was correlated with growth. AI adopters were more than twice as likely to be in the growth tier.
00:02:34
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And the flip side of that is that 56% of agencies using zero AI and processes that contracted last year. So the cost of waiting to adopt AI is actually now measurable.
00:02:48
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That's a huge finding. That is an absolutely huge finding. Well, we won't go down that rabbit hole just yet, but it sounds like another topic for discussion. So what was the third finding?
00:02:59
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Third finding is this is a big one, but agencies that are winning are not relying solely on job boards. They're actually using a multi-channel sourcing strategy and thinking about it strategically.
00:03:13
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Across the whole industry, 39% of agencies tell us referrals are their highest converting source. That's the number one answer it has been for years. It pretty much always is. But what was unique is that this year we saw that only 8% of growth agencies cite job boards as their top converting source.
00:03:32
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And for the flat and slow middle, it's 36% of those agencies are reporting job boards as their top source. So what we're seeing is that the companies that are stalling are being heavily relying on job boards.
00:03:46
Speaker
The agencies that are reporting growth are shifting to a multi-channel strategy and thinking about a little more strategically. Wow. Those are huge findings.
Data-Driven Sales Strategies
00:03:55
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And I'm personally looking forward to going through the survey with a fine-tooth comb because I know there's going to be a lot of interesting data in there.
00:04:02
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So I guess we should get to the topic at hand, and that is sales and revenue generation. One of the things I wanted to start our discussion with, everyone is talking about when it comes to sales and staffing, how important it is to build your personal brand as a sales rep.
00:04:19
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and to manage and grow relationships and networks of relationships. Everyone is focused on that. There's a lot of discussion around that and how to train your sales force properly.
00:04:30
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But in our last conversation, you had noted that the most powerful sales weapon a staffing agency could bring to sales is coming in with the right kind of data. Now, I have to ask, and I'm just slightly skeptical, data sounds a little bit cold for a sales call.
00:04:47
Speaker
You know, if I'm showing up at an employer's office, I might bring a box of Boston creams. Everyone I know loves Boston creams. But if I don't pull out Boston creams, but instead I pull out a chart, they're all going to start to yawn.
00:05:00
Speaker
So I want you to be honest with us. Is it better to bring data or donuts to a sales call with an employer? And if data is so valuable, why aren't data nerds selling more staffing?
00:05:12
Speaker
We'll start with the donuts and then bring the data donuts. I think you've got to do both. The honest answer, it's hard to come up with this data unless you're using the right tools and thinking about it the right way.
00:05:26
Speaker
But at the end of the day, maybe the opening to the conversation isn't here's our data and look at why we're amazing. But the donuts might get you past the front desk. But data is going to win the contract and more importantly, retain the contract.
00:05:40
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And i think that we're seeing the evolution of the staffing industry is becoming more mature, more data driven. The old approach of, well, they work with me because we have such a close relationship that works in good times and can maintain a relationship.
00:05:55
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When things get hard and the CFO comes into the room, you need to make sure that you have the metrics that you need and that you're able to sustain the pressure that you have on the staffing services you're delivering.
00:06:06
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So it's not just data or donuts, it's donuts and data. And, yeah you know, you open the conversation with the donut and you close it with some data is what I'm hearing you say, assuming it's the right kind.
00:06:19
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So as we think about this, every staffing agency carries around some data or insights that they use for selling. Everyone does it. My question is, how do you use data as a sales tool to stand out from other agencies?
00:06:34
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What is it in particular that is going to be most important to employers and why should they care that you have specific data? It's interesting. One of the things that I think is the historical standard in staffing is to go, we have this many employees, we've been around for this many years. This is the who we are data. And really what you need to think about is what is the data that your customer actually cares about?
00:07:00
Speaker
What they care about are things that are going to save them time, that are going to help drive a better ROI, that are going to help them get the outcomes that they want. That comes back to the average time on contract, comes back to the talent source and where you're getting your people. You can look at the candidates that you have and how many of them are certified or verified and what data do you have to prove that?
00:07:21
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Looking at your redeploy rates or your average tenure, a lot of our customers that are winning sales and growing in this tough market. are literally doing, it was kind of funny, you brought out the donuts part of it.
00:07:33
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They're sending koozies, they're sending the gifts to the customers. And then they're backing it up and saying, not only that, but our employees, when you work with us, they're going to stay 40% longer than the person who gets a hire from a job board.
00:07:47
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And I'm partial on this, but I think that as we move into a world where everybody has access to the same talent on the same job boards and everybody can use the same AI sourcing tools on those job boards, it's what are you doing that is unique to your agency?
00:08:03
Speaker
And that is the talent pool that you've curated, that you have access to that they don't have access to. So we have a lot of customers that are going in and showing we had 40% of our placements from referrals last year. And we have an ambassador network of 10,000 people that we can reach out to for any job.
00:08:21
Speaker
And so we're not starting with the job board, like the other agencies were starting with a network that we've hand curated. And I think that can be a really strong position when you're having a conversation about why you cost 2% more than the other agency.
00:08:36
Speaker
And it's a good stance to come in with. So it's really about data that proves that you can deliver superior value and data that proves that you have a better product, namely better people who are specifically well aligned with what the employer needs.
00:08:51
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Absolutely. So with that in mind, lots of agencies are going to say, well, we've got great people or we hire great people. What do you need to do to ensure that your data is credible?
00:09:03
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At the end of the day, people can make claims, but if a salesperson walks in with specific metrics, what is it that is going to be most impressive to an employer? And is this a one-time snapshot or do you need to have an ongoing analytics program that demonstrates consistent superiority?
Building Strategic Partnerships with Data
00:09:21
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The starting point is having a system of record that you can rely on like Aviante, having something in place where you can rely on the consistent, reliable data and having the metrics that you need.
00:09:32
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The customers that we see winning, they're building data dashboards for their customers. One of the people i had on our podcast, WSI, they have built out dashboards that their customers can see.
00:09:46
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Where did they find the talent? How long did they stay on contract? And they have that in real time. And they're looking at this as strategic partnerships where they're like, Hey, when you work with us, you're actually getting visibility and transparency into how we're operating so that we can work like a team.
00:10:06
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And I think that is the future of this is not just looking at Okay, I found a person I got in place and I'll talk to you again in three months. It's how are we performing? How are we measuring our performance and how are we aligning with the outcomes of that business and your customer actually need? So I think it's a little bit more of the strategic partnership that you and I have talked about a few different times.
00:10:27
Speaker
So ultimately, the analytics becomes part of the product. In a sense, you're building a strategic alliance around how you manage the employer's workforce. And they have transparency and visibility into what you, the staffing agency, are doing.
00:10:43
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The associates at a staffing agency are going to be working to ensure that the client gets the results they're expecting. So it sounds to me like the data is part sales tool, but it's also part of the ongoing product that you would use in order to demonstrate value.
00:10:59
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Absolutely. I jumped into the metrics that I think are pretty reliable for being valuable to your customers when you talk about them and can be a way to stand out and have a unique value proposition. i think one thing to zoom out is We're moving into a consultative sales world. We're moving into strategic partnerships and figuring out how you're talking to your client, you're understanding what are the outcomes they need to have happen? What does success look like for them?
00:11:27
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And you're aligning your services to that and then giving them visibility into how you're tracking towards that. That's the shift we're seeing
Training Sales Teams in Data Integration
00:11:35
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happen. And it's the way to stand out in this market is by doing things that historically staffing agencies haven't spent a lot of time thinking about.
00:11:44
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Yeah, so to that end, salespeople aren't data junkies. And a lot of people are trained around relationships and relationship management. But now we want them to be consultative. Now we want them to sell with data.
00:11:57
Speaker
How do you, you know if you're running a staffing agency today, you got to find sales team, but you're trying to convert them to this kind of approach. How do you actually train salespeople to be comfortable selling with data? And what does that look like?
00:12:14
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Your data is your unique value proposition. i was actually on a call with Dan Morey earlier this morning. he's the founder of the staffing sales summit and staffing dashboard. And he walked me through exactly this.
00:12:27
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How do you talk about your data in a sales meeting? It's something he trains on. It's something his platform helps deliver as well. And I'm just going to read what he said this morning. He said, when you go into a sales meeting, you have to know what the prospect is thinking.
00:12:41
Speaker
Why should I do business with you? I've got 15 other staffing agencies calling me every single day. Why should I pick you? and then you get to say, great question. Most agencies in the staffing industry rely primarily on job boards. 75% plus have stated that 80% of their placements come from job boards sourced within 30 days of assignment.
00:13:01
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That means they're doing something for the customer that the customers can do themselves. And we have verifiable data that those placements perform worse, take longer to place turnover quicker and are lower quality than someone sourced through a talent network.
00:13:17
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So that isn't unique to you and it isn't valuable to the client. And then you present your talent network data in a way that shows them that you are unique. So I think one of the key ways to get your sales team on board with this is simply to have it be part of your standard sales process. to arm them with the data they need and to make sure that they know the stories, the talk track, and they understand how this ties into the value that you create.
00:13:46
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Got it. So it's introducing the data in a way that makes the story come to life and you know, to be able to say we are different and it starts with the way we source. And here's some data that shows this. Now, why is this important to you employer? Because better sourcing means better candidates, better candidates means better work outcomes.
00:14:04
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And that just drives much better value for you. So you don't have to say blue chip service or any of the other platitudes that we've heard so often in the staffing industry. It's more about, we can provably show you that we do a better job of finding the right people for our customers.
00:14:22
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Absolutely. And even to the point of, If you're going with another agency that's using primarily a job board, you are probably going to review 10 to 15 times more resumes and potentially have to interview a handful more people.
00:14:36
Speaker
When you're going to your trusted network, the placement rates are so much higher that you can literally tell them, You're going to save time. You're not going to to spend as much time talking to people, vetting people and figuring out who to hire.
00:14:48
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And when you do find them, they're going to stay on contract longer. So it's a way that is immediate, meaningful impact to them. And also something that they're unable to do, which makes it unique to how you provide value to them.
Data in Marketing for Client Engagement
00:15:02
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Yeah, I was going to say, you know, it's funny when I look at staffing agencies that spend most of their time on job boards, the recruiters, oftentimes they're very hairy. They're like hamsters on a wheel, they're um constantly just going through names as opposed to very calmly finding exactly the right person that a customer needs for their particular assignment. So I do think it's interesting that this approach actually makes an agency a more fun place to recruit, frankly.
00:15:30
Speaker
Yeah. And just to add to that, one of our customers also was not only providing dashboards, but they were aligning the hires based off of values and fit, which is something that you see in strategic HR hiring. But they were trying to say, we want to make sure that people that go there enjoy the work that they actually go to. And if a candidate rejected or quit one of their clients because they were treated poorly or it wasn't a good fit, they would not send another person there.
00:15:59
Speaker
And so we've had people take it to the length of like, we're actually going to really focus on, and this is beyond data, but they're really focusing on the fit and trying to make sure that they align that as well for both parties, which then allows you to create more value again. takes a little bit more time. And I know that can be difficult in the staffing industry where speed is so incredibly important, but it is something that can help you stand out from everybody else in the market.
00:16:26
Speaker
Yeah, and that makes sense. And what it also says to me is, really, you're not just talking about a data-driven sales approach. You're talking about a value-driven sales approach that has as its foundation solid data.
00:16:38
Speaker
So that makes a lot of sense. I am curious. We talked about how the sales process transforms. A lot of agencies don't think very much about marketing or haven't historically.
00:16:50
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But I think going forward, marketing will become increasingly important To what extent does the agency's marketing then build around this value-driven and data-driven approach?
00:17:01
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And have you seen examples of this working in real life? Absolutely. It was a large, light industrial franchise. in their sales deck, they just added a slide that was specifically about the talent that they were delivering to that client.
00:17:16
Speaker
And they added the number of ambassadors, their referral placement rate, the time on contract, And all of those things, i think it was the first week after they put that in their deck, they came back like, we just got a deal. and we think that was actually part of the reason we won it over the competitor. And it was such a simple thing.
00:17:33
Speaker
But your product as a staffing agency is the people you're delivering. And I think agencies sometimes forget why aren't you shining the light on what makes the talent you're delivering different.
00:17:45
Speaker
compared to the others. And so I think it's an easy way to do that. It's a angle that I think a lot of the larger agencies are starting to recognize that the future of staffing is going to be about verified, qualified talent and figuring out ways to make sure that you're delivering that higher quality talent is going to be critical as things move forward in the
Operational Discipline in Data-Driven Sales
00:18:07
Speaker
Yeah, so we started the discussion by talking a little bit about data-driven selling, and we concluded that bring your donuts and your data. But beyond that, what i hear you saying is that there's an aspect to this where you have to have systems in place and operations in place in order to do this. So there are certain things that a staffing agency needs to do.
00:18:31
Speaker
that are going to take a few months and a lot of operational discipline at the very least to get moving on. And I would guess that a really robust referral program could actually take 12 to 18 months before it reaches close to its full potential.
00:18:46
Speaker
And what I also hear you saying is you want certain kinds of data or metrics that create very close alignment between your existing customers and your recruiters and your operations to keep things going forward and then use those examples to win new customers.
00:19:04
Speaker
Is that a fair assessment? That's exactly it. I think it's alignment of your data to the customer's needs and specifically the customer's outcomes and their goals. So what are they trying to achieve? What are the challenges they have?
00:19:18
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And then how can you solve that uniquely compared to the other agencies that they're talking to? And I think it's easy to say, we'll solve it faster. We're going to do the same thing as everybody else.
00:19:29
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But if you can slow down and think about how can we do this better? And how can we create more value for the customer and help them achieve their goals in a different way? It's one of the reasons I think in some verticals I guess has been happening for a while in accounting and finance and IT, starting see statement of work, staffing agencies start to pitch statement of work where it's outcome.
00:19:50
Speaker
based project work. And I think that's going to be something that starts to be more common as well. And ultimately comes down to how do you help the customer solve the challenge that they have in a way that others cannot, and how can you prove that? And that's where the data comes into all of this.
00:20:10
Speaker
So really the data isn't just about helping to grow your W-2 staffing. It may also help you to move into business adjacent services, which makes a lot of sense based on the direction that staffing is moving today.
Balancing Data and Relationships in Staffing
00:20:24
Speaker
So yeah any final words of wisdom for us, David, if you were counseling an agency owner or an agency executive about how to actually start putting some of these programs in place, where would you start? David.
00:20:38
Speaker
In terms of a starting point, I think it's just worth noting that the world is changing faster than it ever has before. Dig into how are you operating today to get a baseline? So look at your channel source mix, start measuring your redeployment rates.
00:20:55
Speaker
I don't remember the exact number from the state of staffing, but the lack of people who measure their redeployment rate was astronomical. Same with the net promoter score and the reputation. So Start getting like a baseline of what is your company delivering today?
00:21:10
Speaker
How does that align to the data that your customers need? Go talk to your customers, go one by one to your top customers and ask them what data would help us review better? What metrics would be valuable for you to know that we're performing and start aligning your metrics with your customers so that you can create the value that you need to.
00:21:30
Speaker
It's always going to be a relationship world, but we are also moving into a world where technology and AI is going to make the donuts only salesperson.
00:21:42
Speaker
It's made it hard for them to be able to close the deal. So we'll go with data and donuts. And David, as always, thank you for joining us. I think you've touched on some really important points. And it's quite clear to me that data is vital to the sales process.
00:21:57
Speaker
But in order to use data effectively, you really have to be thinking holistically about what is the value that you are delivering to your customers and how are you going to prove that value on an ongoing basis?
00:22:09
Speaker
But clearly, that seems to be the formula that is generating revenue growth with staffing agencies today. So I think it's a huge insight and very important. So, David, thank you so much for being with us.
00:22:21
Speaker
Thanks so much, Chris. This has been another episode of Aviante Digital Edge. Thank you to our listeners for joining us. If you enjoyed this episode, please like and subscribe on all major podcasting platforms. And if you'd like to learn more about Aviante and how our all-in-one staffing platform can help your business grow, visit aviante.com.
00:22:42
Speaker
I'm Chris Ryan. Until next time.