Why be Blockbuster when you can be Netflix?
A common theme of the staffing conferences I attend is that the industry is headed for a significant future digital disruption.
It turns out that prognostication is only partially accurate. The real story is that the digital disruption is already here.
Each month, the number of temp jobs that are broadcasted and accepted via mobile app is consistently growing. While a lot of that utilization growth comes from new, app-centric agencies like Indeed Flex and Snap Nurse, you might be surprised to find out just how many “traditional” agencies are also successfully implementing a digital component.
It is not just national players getting in the game either. At the regional level, competitive rivalries will be increasingly decided by the firm with the best digital presence. This new fight presents a great opportunity for early adopters of the technology to grow market share. Unfortunately, there will also be adverse consequences for firms that are unwilling (or unable) to successfully implement a mobile layer.
The fact that mobile technology is going to impact brick and mortar staffing should come not surprise anyone, considering we have seen this play out in other industries for two decades now. Based on what we have seen, possible outcomes might take the form of:
- Reduced profit, like Airbnb taking a big chunk out of revenue from the hotel industry
- A takeover, such as the impact Amazon had on retail
- Total disruption, similar to what Netflix did to video rental stores
Those that do not learn from history are doomed to repeat it.
In considering the consequences that might result from missing the rise of digital staffing, let’s look at the growth patterns we have seen elsewhere. For example, the curve below depicting the adoption of ridesharing. Notice there are really two different, distinct linear trendlines here. The first four years roll along with a decent annual increase, but there is an explosion around year four, and a whole new trendline develops as the innovation quickly gains market acceptance.
You can expect digital staffing will behave with similar adoption curves. Anecdotal evidence also supports this idea, as many agencies can be slow to adopt new technology, until the whole herd moves at once. From this we can conclude that even with the current growth of staffing platforms, the bulk of the growth is about to come.
This is great news for small and midsized agencies, who are currently faced with the opportunity to maintain their existing client relationships while also adding a layer of client/worker facing technology.
Let’s reimagine the art of worker deployment together
If you believe in the future of digital staffing, let’s have a conversation. Arrived is seeking small to mid-sized staffing agencies that want to be leaders in the emerging space of digital staffing! I’d like to help agencies of all sizes to adopt a mobile platform on their own terms, and with a fully branded app in the Apple App/Google Play store. If you want to know more or even just discuss market conditions and strategy, grab some time on my schedule here.