Trinity Event Staffing May 17, 2019 Developing Labor Trends In Dallas Fort Worth The Dallas Fort Worth economy continues to boom! Local established companies in many sectors are growing at an unprecedented rate. Also a growing number of national companies have migrated to Texas for its pro-business friendly environment. Alongside these established companies, countless boom economy startups blink into existence every month. The accelerating economic dynamo has already created enormous strains on labor resources for certain sectors in North Texas. Even the continuous rivers of people migrating here cannot satiate the growth. Historically, in good times and bad, temp agency partners have allowed companies to flex when and where they need it most. But with such an abundance of employment opportunities, candidates possess more choices. Good applicants know they can seek out the best opportunities, cultures and pay. This most profoundly affects certain labor-intensive sectors. These include the hospitality, transport and medical industries. Temp agencies have long been used to fill the gap in both recessions and bull economies. Indeed, a strong temp agency partner could potentially mitigate much of the distress for their clients. But this is true only if the agency has a winning culture, advanced technology, standardized processes and sufficient internal resources. Emerging Beliefs and the Rise of the Gig Economy As attitudes among job-seekers shift away from traditional employment, temp agencies represent the future. This is because as workers embrace the personal freedoms inherent to the gig economy, the temp agency model epitomizes their choice. At the heart of the shift sits workers’ desire to control their work-life balance, pay and attitudes on ‘getting ahead’. Major silicon valley giants now validate the dual requirements of having employee and client focuses in order to survive. Thus, while many companies are positioned to grow quickly, these trends affect their ability to do so. Specifically in Dallas, companies face increasing headwinds in talent acquisition and employee retention over the short term. The financial crisis of 2009 crippled the legitimacy of companies who turned out employees en masse to save themselves. The rise of the gig economy is in part a reaction to this callous episode of national suffering. Now, only a decade later, no one could have been expected to see that the next crisis would be a labor crisis. But with unemployment currently at 3.6%, insufficient liquidity exists in the labor market. The US Federal Reserve continues to monitor what economists deem to be well below the floor for healthy unemployment levels. The awakening giant of working class’ beliefs will ultimately decide which industries collapse. And while automation and AI represent emerging answers they cannot save all industries. As a result, labor in the US may pass from being a commodity item to a luxury good. Labor Shortage Becoming a Labor ‘War’ “The war for talent is here and it’s now. If you’re not investing in the latest tools and technologies to help employees do their job, they’ll go somewhere else.” – Ed Flynn, ADP Many companies have only now woken up to the unfolding labor shortage turned crisis. The time to contract a strong temp agency partner reached a critical tipping point as of this year. That is because companies must maintain their product, service and management standards as they scale larger. However small, large and even international companies now compete feverishly for the same talented management and front-line labor resources. This effect compounds for certain industries as candidates choose more lucrative or desirable fields. The resulting “brain drain” has already caused massive disruption and a decline in standards across multiple industries. Thus, many industries in north Texas will soon require supplementation with a temp agency just to survive the labor vacuum. The Effect on the Hospitality Industry and Event Staffing For the hospitality industry in particular, having an event staffing partner remains critical. This one decisive association will alone make or break many established companies and boom economy startups. Event companies in north Texas must adapt quickly or see the quality of their services decline. Now more than ever they must carefully pick a resilient staffing partner to help them weather the growing labor vortex. Companies that are late to wake up late to this new paradigm will find themselves overpaying for a substandard temp agency. Unfortunately, many temp agencies lack sufficient internal infrastructure and have an unchecked degeneration in service standards. This will cause many temp agencies to threaten the reputation of the very event companies they are being contracted to help. Your Temp Agency Choice Will Become Your New Standard That is because for certain a standard of excellence exists and clients expect it to be maintained despite these converging trends. And in any company or temp agency, standards become what you accept or tolerate. That means temp agencies must start the right way, with a good vetting and hiring process. The carry-on to this means having robust online training and on-the-job coaching. This brings everyone involved up to a higher standard of service. These represent the hallmarks of a great staffing provider to clients. But these are now only half of the equation for success. To keep great candidates, temp agencies must engage new technologies, inclusive cultures and robust communication. The degree to which they do so will dictate the service standards that they pass along to their clients. Saving The Event Staffing Temp Agency Industry “There are no bad teams, only bad leaders. Leaders must own everything in their world. There is no one else to blame.” – Jocko Willink As any study of military history can tell you that the tide of a battle can be turned with just one excellent leader. As for companies, they too rise and fall based on their leadership. And while middle managers become increasingly difficult to replace, perhaps quality over quantity represents an answer. Therefore event companies and their event staffing temp agency partners must now double down on retaining talent. Retention of experienced managers represents the only way to preserve service standards once thought immutable. But also too leaders must emerge from within the industry to guide it beyond passive acceptance of mediocrity. So how does an event staffing company become a top temp agency in Dallas Fort Worth? Simply put, event staffing labor providers must hire, train and retain competent leadership at all levels. From front-line squad leaders to large event leads, a concerted effort must be made. Promoting candidates who display a commitment to client success remains key. But now more than ever, creating top talent from scratch becomes an essential force multiplier. And by reinforcing a meritocracy, everyone rises or falls on the measure of their efforts. In this way, standards will trend upwards to become the bulwark holding the line against the decay of excellence in service standards for our industry.