Temporary Staffing Suppliers: Can You Teach An Old Dog New Tricks?

talent management

Yes, it turns out you can.

Most contingent workforce managers would probably agree that the majority of their individual contingent workers come from temporary staffing suppliers. These staffing suppliers have businesses models that have not changed in 20 years or more, producing little in the way of innovative workforce solutions.

In the meantime, new online work intermediation platforms — such as Upwork, Work Market and many others — have sprouted up outside of the traditional contingent workforce supply chain. This development aroused quite a bit of angst in the staffing industry, even talk using “the d word” (disruption). However, some, including myself, said that at least some staffing firms would begin to respond to these developments by adopting these online platform models themselves and adding them to their portfolio of workforce solutions. Back in 2013, I had referred to this change as the “hybridization” of the staffing industry, and indeed it has started to happen.

Enter Erandoo

In October, Integrity Staffing Solutions launched a digital marketplace for talent called Erandoo, “a safe, vetted platform for the white collar and blue collar sectors,” according to the press release accompanying the announcement.

Erandoo

The platform connects individuals and entrepreneurs who have spare time with people and businesses that have projects tasks to get done. Erandoo “simplifies the process for talent seeking opportunities and those seeking talent across a variety of disciplines,” Integrity Staffing President and CEO Todd Bavol said in the press release. The types of work and projects range from local tasks such as errands, pet care and handyman tasks to more business-oriented jobs such as sales and marketing, data entry and product sourcing and manufacturing. Both local onsite and virtual work are supported.

Bavol, who cited vetting as a key differentiator, said Erandoo also “provides payment security, satisfaction guarantees, information transparency, review and rating systems, enhanced member profiles and around the clock user support.”

The Continuation of an Emerging Trend

As we alluded to above, Erandoo provides more evidence of an emerging trend of hybridization in the staffing industry. We have covered other instances of staffing supplier hybridization, such as Crew Connection and Freelance Physician. We are also aware of other suppliers undertaking this move, as well as a software provider, NextCrew, which enables staffing suppliers to become hybrids.

We also know that other larger staffing firms have taken an envelopment approach by either acquisition or investment — Adecco/Beeline with OnForce, Randstad with Gigwalk and twago, and Recruit with 99designs and Gengo. We also understand that KellyOCG has taken a different approach of partnering with some work intermediation platform to integrate them into its “Talent Supply Chain” solutions

Is it a trend? We think it is very likely.

The Future of Staffing Suppliers

We believe that some staffing suppliers will successfully manage to innovate and extend themselves or integrate online work intermediation platform models into their businesses. Such hybridization has already started to occur, and the trend will likely continue. Not all suppliers will attempt to or succeed in doing so, but some significant number probably will.

Consequently, contingent workforce and services procurement practitioners should begin to see the emergence of some hybrid suppliers appearing in the supply base. What this may imply — perhaps more rapid adoption of online work intermediation platform-based workforce solutions — remains to be seen.

Please follow Andrew Karpie on Twitter @andrewkarpie

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