TechServe Alliance | IT & Engineering Staffing Resources https://techservealliance.org Wed, 24 Sep 2025 16:16:02 +0000 en-US hourly 1 https://techservealliance.org/wp-content/uploads/2020/06/cropped-techservealliance-favicon-32x32.png TechServe Alliance | IT & Engineering Staffing Resources https://techservealliance.org 32 32 Future-Proofing Compliance: What Staffing Leaders Need to Know About AI, Contracts, and Employee Handbooks  https://techservealliance.org/future-proofing-compliance-what-staffing-leaders-need-to-know-about-ai-contracts-and-employee-handbooks/ Wed, 24 Sep 2025 09:58:17 +0000 https://techservealliance.org/?p=72366 Artificial intelligence is transforming the way businesses recruit, manage employees, and interact with clients. But with innovation comes complexity—and for staffing firms, the legal and compliance risks tied to AI […]

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Artificial intelligence is transforming the way businesses recruit, manage employees, and interact with clients. But with innovation comes complexity—and for staffing firms, the legal and compliance risks tied to AI are multiplying fast. From data privacy to bias audits to vendor contracts, staffing leaders must be prepared to navigate a rapidly evolving regulatory landscape.

Chris Leddy, Partner at Becker LLC, has been working with staffing firms nationwide for more than a decade. He emphasized that while AI offers tremendous efficiency gains, it also brings legal obligations that can’t be ignored. Leddy says, “AI is everywhere. And employers have to understand not only how they’re using AI, but also how laws are changing around it.”

The Expanding Patchwork of AI Laws

At the federal level, there is no single AI law yet—but states and cities are moving quickly. Laws in New York City, Illinois, Maryland, Colorado, New Jersey, and California already impose requirements ranging from bias audits to disclosure notices.

For example:

  • New York City’s Automated Employment Decision Tools law requires annual independent audits of AI hiring systems and public posting of results.

  • Illinois prohibits using zip codes in AI screening to prevent disparate impact and regulates video interviews analyzed by AI.

  • California now requires employers to preserve AI audit findings for four years and extends liability to staffing firms acting as agents of employers.

These laws matter even if your firm isn’t physically located in those states. If you’re recruiting remote candidates or working with clients based in these jurisdictions, the regulations may apply. Leddy notes, “It’s not just where you’re headquartered—it’s where your candidates are, where your clients are, and where the work is performed. That’s why staffing companies in every state need to pay attention.”

Bias, Privacy, and ADA Concerns

AI can improve efficiency, but it also risks perpetuating bias if data sets are flawed. Discrimination doesn’t have to be intentional—disparate impact is enough to create liability.

The EEOC has already warned that employers may be responsible for discriminatory outcomes from AI tools, even if the software comes from a third-party vendor. Similarly, the ADA creates risk if AI screening tools unintentionally exclude individuals who could perform a role with reasonable accommodation.

Data privacy adds another layer of exposure. Using open systems to process client or employee information could compromise trade secrets or protected health information. Leddy urged firms to be proactive, saying that “Employers are ultimately responsible for the information that goes into AI systems and the outputs that come out of them. If you’re using confidential data, keep it in-house with vendors you trust—not in public AI systems.”

Contracts and Vendor Management

Given the risks, contracts with AI vendors are now critical. Staffing firms must ensure agreements contain strong indemnification, representations, and warranties. That includes requiring vendors to:

  • Defend and indemnify your firm against claims tied to their technology.

  • Prove compliance with applicable AI, privacy, and anti-discrimination laws.

  • Perform (and share results of) bias audits.

  • Maintain cybersecurity standards and carry sufficient insurance.

Leddy was clear that leaders should not accept vague vendor promises, emphasizing that “Just because your AI vendor claims to be compliant doesn’t mean you’re protected. You are still responsible for how data is used. Push liability back on your vendors and make sure they have the pockets to back it up.”

Employment Policies and Handbooks

AI is reshaping HR processes—from resume screening to payroll monitoring. But if not managed carefully, these tools can trigger wage-and-hour violations, ADA claims, or labor relations disputes.

For example:

  • Productivity tracking based on keystrokes or mouse clicks may fail to capture compensable time, leading to wage claims.

  • Automated break deductions can violate FLSA rules if employees don’t actually take those breaks.

  • Monitoring communications with AI tools may cross into NLRA-protected activity.

To mitigate risk, firms should:

  • Update employee handbooks with AI usage policies.

  • Provide clear notice when AI systems are used.

  • Train managers and recruiters on compliance.

  • Ensure humans make the final decision on hiring, promotion, and termination.

Leddy emphasized, “Never let AI make the final decision. Employers should use AI as a tool, but ultimate responsibility has to remain with humans.”

Practical Steps for Staffing Leaders

To future-proof compliance while still leveraging AI, staffing leaders should:

  • Monitor emerging laws at the federal, state, and local levels.

  • Conduct bias and impact audits regularly—even where not yet required.

  • Review and update contracts with AI vendors to ensure proper protections.

  • Strengthen data privacy practices and avoid entering sensitive information into open AI tools.

  • Revise employee handbooks to reflect AI use policies, privacy rights, and accommodations.

  • Train and retrain employees on responsible AI use.

The bottom line: AI will continue to evolve faster than most employment laws. Staying ahead requires a proactive strategy that blends legal awareness with practical safeguards.

For staffing firms, that means embracing AI’s benefits—while ensuring compliance, protecting data, and keeping people, not algorithms, in charge of final decisions.

Watch the full webinar about the future-proofing compliance here.

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From Data to Decisions: How Staffing Leaders Can Improve Profitability in a Challenging Market https://techservealliance.org/from-data-to-decisions-how-staffing-leaders-can-improve-profitability-in-a-challenging-market/ Wed, 17 Sep 2025 06:00:52 +0000 https://techservealliance.org/?p=72196 Profitability doesn’t happen by accident. It’s the result of disciplined execution, data-driven insights, and a commitment to fundamentals. For IT and engineering staffing firms navigating a flat or declining market, […]

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Profitability doesn’t happen by accident. It’s the result of disciplined execution, data-driven insights, and a commitment to fundamentals. For IT and engineering staffing firms navigating a flat or declining market, success hinges not on chasing elusive revenue spikes but on managing the variables that truly drive margins.

That was the central theme as Rick Carlson, Founder & President of Harvyst Consulting Partners, and Sean Gilligan, IT Staffing Executive in Residence at TechServe Alliance, explored the latest benchmarking data from TechServe’s annual Operating Practices Report (OPR) and real-world strategies shaping the industry. Their message was clear: firms that know their numbers, control expenses, and focus on productivity can thrive even in leaner times.

Why Profitability Is Under Pressure

The numbers tell a sobering story. Across the industry, EBITDA dropped sharply from 2023 to 2024, and pressure has continued into 2025. As Carlson explained, “Profitability was really under pressure in 2024, and it continues in 2025. All firms saw EBITDA fall, and firms tied heavily to VMS and MSP business struggled the most.”

The difference between high-profit and typical firms was not margin percentage. High-performing companies didn’t necessarily sell at higher rates, but they controlled costs, shortened collection cycles, and made sure gross margin dollars translated into bottom-line results.

The SG&A Imperative

If there was one recurring theme, it was the critical importance of managing selling, general, and administrative expenses. Carlson illustrated the point, noting that “If a typical firm brought SG&A down from 23.5% to 21.3%, they would double their profit. It’s that impactful.”

Gilligan reinforced the urgency from the field, adding that “Everyone’s struggling to grow revenue right now. The only thing that consistently separates high-profit firms from the rest is expense control and collection discipline.” Staffing leaders may not be able to control broader market demand, but they can and must control the levers inside their own business.

Compensation and Productivity: Getting the Balance Right

Another theme was compensation effectiveness. Rising salary expectations, underperforming producers, and costly new hires can all drive up expense ratios without corresponding revenue gains. Carlson cautioned leaders to monitor what he calls the effective compensation rate, the percentage of gross margin dollars consumed by producer pay.

“If you’re outside the 25–40% range, there’s a problem. Too low, and you risk losing people. Too high, and you’re probably carrying underperformers or paying too rich a plan.” Gilligan noted that underperformance is becoming more common, even among previously strong salespeople. “The biggest issue I’m hearing is underperformers. Clients are struggling, and so are their reps. It’s driving compensation ratios higher and eroding profitability.”

For firms trying to strike the right balance, both speakers recommended accountability, smarter plan design, and the use of management-by-objective bonuses instead of inflated base salaries.

Sales and Recruiting Benchmarks

Profitability also depends on productivity, how much each producer contributes relative to their compensation. Benchmarks from TechServe Alliance’s reports provide a roadmap. Gross margin per producer shows high-profit firms average around $36,000 per month, while typical firms lag at $34,000. When producers consistently exceed $30,000 per month, it’s often time to add staff to prevent missed opportunities.

Senior sales reps should target 30–38 client meetings per month, with at least four placements, and recruiters should consistently generate quality submissions, with senior recruiters aiming for one placement per week. While attrition has climbed to 8–10%, high extension rates remain the strongest indicator of consultant quality and client satisfaction. These benchmarks aren’t just numbers. They provide practical guardrails for assessing performance and identifying bottlenecks.

Headwinds and Tailwinds for 2026

Looking ahead, firms face both challenges and opportunities. On the headwind side, economic uncertainty, reduced federal spending, persistent skills gaps, and the growing issue of fraudulent candidates are top concerns. Yet there are also promising tailwinds, including emerging technologies, demand for green engineering and healthcare IT, and efficiency gains from AI-driven recruiting tools.

 Gilligan sees technology reshaping how firms source and engage talent, observing that “Internal databases are going to surpass job boards in the next two years. With new tools, firms can finally leverage their own systems like LinkedIn at a fraction of the cost.” Carlson encouraged leaders to stay disciplined and forward-looking, saying, “Fundamentals are everything right now. Know your numbers, manage expenses, and build your forecast. The market may be flat, but there’s still plenty of business out there for firms that execute.”

Turning Insight Into Action

For staffing leaders, the message is clear. Profitability doesn’t hinge on predicting when the market will rebound. It depends on running a disciplined business today. The data and strategies discussed point to several immediate action steps:

  • Audit SG&A monthly and treat every expense line as an opportunity to protect margin
  • Evaluate compensation effectiveness to ensure plans drive performance without overpaying
  • Measure productivity rigorously, tracking time-to-fill, job order fill rates, and gross margin per producer
  • Leverage your data using benchmarks to spot red flags, manage underperformers, and know when to hire
  • Stay focused on fundamentals, with training, accountability, and consistent execution making the difference

As Carlson summed it up, “Revenue cures a lot of ills, but it has to be profitable revenue. If you know your numbers and manage them well, you can win in any market.”

TechServe members can view the original webinar here.

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Why Skills-First Hiring is the Key to Building Stronger Talent Pipelines https://techservealliance.org/why-skills-first-hiring-is-key/ Wed, 27 Aug 2025 16:42:55 +0000 https://techservealliance.org/?p=71908 Staffing firms today face a paradox. Candidate pools have never looked bigger, yet critical roles remain stubbornly unfilled. Recruiters are spending hours screening applications—many of which are inflated or even […]

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Staffing firms today face a paradox. Candidate pools have never looked bigger, yet critical roles remain stubbornly unfilled. Recruiters are spending hours screening applications—many of which are inflated or even AI-generated—while genuine, qualified candidates are getting buried. The traditional filters of resumes, degrees, and past job titles are no longer enough to deliver results. 

As Katie Breault, Chief Delivery Officer at YUPRO Placement, put it: “Recruiters are flooded with applications right now and some are real, some are AI generated. Meanwhile, our true entry-level roles are getting harder and harder to find.” She noted that degree requirements and keyword searches often reward resume crafters rather than true performers, creating inefficiencies and eroding trust with clients. 

This is where skills-first hiring offers a new path forward. Instead of focusing on where a candidate has worked or what credentials they hold, the approach zeroes in on what candidates can actually do—verified through projects, certifications, assessments, and past performance. 

“Hiring managers aren’t looking for resumes, they’re looking for talent,” Breault explained. “Proof of performance is the most credible signal. You submit fewer candidates but with stronger proof, and that builds client confidence.” 

Building Sustainable Talent Pipelines 

Eric Westphal, Chief Operating Officer at Year Up United, emphasized that the real differentiator in preparing candidates isn’t just technical training—it’s pairing skills with readiness. “We are providing them with a proprietary career readiness training and assessment,” Westphal said. “Employers can be confident that these individuals not only have the technical experience, but also the durable skills—the ability to network, navigate professional environments, and persist from day one.” 

Year Up United’s model, serving thousands of young adults annually, blends intensive training with real-world work experience through internships at major companies. The outcome: 80% of participants secure sustainable careers or continue their education. Westphal stressed that these results prove the value of combining technical skill-building with intentional support and coaching. 

“What we’ve learned over 25 years is that the real differentiator is the work-based experience,” he added. “That internship, that opportunity to learn on the job and continue to have this high support, makes all the difference.” 

Consistency, Scale, and Client Confidence 

From a staffing firm’s perspective, skills-first hiring only works if it can be delivered consistently. Ainsley Castro, National Director of Strategic Partnerships at YUPRO Placement, pointed out that partnerships with training providers create access to ready talent at scale. 

“Partnerships widen our reach and help lower sourcing costs. Firms that lean into these pipelines spend less time chasing volume and more time delivering,” Castro said. With new graduates entering the workforce every year from programs like Year Up, firms can tap into a steady stream of trained, vetted talent in markets across the country. 

What staffing leaders value most, Castro emphasized, is predictability. “Wherever clients operate, the same level of preparation and readiness is available. This is proof that skills-first hiring works at scale across industries and geographies.” 

Real-World Growth Stories: Case Studies of Two Staffing Firms 

For staffing firms and clients, the proof ultimately comes from how candidates perform on assignment. James Rowbotham, Senior Director at PrideOne, has seen firsthand how job-ready alumni succeed inside top corporations. 

“They understand how to do the job, but they also understand how to work in that environment as well,” Rowbotham explained. “They understand how to give and receive feedback, how to work with teams. Those soft skills are rarer than many people imagine, and that’s what really sets them apart.” 

Rowbotham noted that adaptability is especially critical in today’s rapidly changing workplaces. “We’ve seen folks start in one role, then be asked to jump into something completely different—and they not only adapt, they thrive. Because of where they’ve come from and what they’ve gone through, they’re just incredibly resilient.” 

Adaptability, professionalism, and loyalty also stood out to Martin Thurmann, Service Delivery Leader at Milestone Technologies. Having managed many alumni directly, he described their mindset as “ready to go from day one.” 

“They’re not only technically skilled, they have communication skills, they show up on time, they follow through—and that matters a lot in the corporate world,” Thurmann said. 

One of the strongest examples he shared was of a candidate who joined six years ago as an AV technician and is now an operations manager. “What sticks out for me is he wants to get things done,” Thurmann recalled. “Leadership is about growing together and giving feedback, and he had the confidence to not only identify problems but also present solutions. He’s grown into a top member of my management team.” 

For Thurmann, this growth underscores why skills-first candidates aren’t just good hires—they’re long-term assets. “They’ve proven they can learn fast, work hard, and adapt to different environments. Their loyalty reduces turnover, which saves money and strengthens teams. That’s an advantage every staffing leader is looking for.” 

Moving Forward with Skills-First 

Across all perspectives, the themes are clear: speed, readiness, and reliability. Skills-first hiring allows firms to place candidates who are prepared to contribute from day one, strengthening client relationships while reducing the cycle of backfills and turnover. 

The path forward doesn’t require staffing firms to overhaul everything at once. As Breault advised, even piloting skills-first hiring with a single role can demonstrate its impact. “If you shift just one role to skills-first this quarter, it builds momentum. And momentum is what builds real change.” 

The staffing industry is at an inflection point. Traditional resume-driven filters are proving less effective, while client expectations for faster, stronger placements are only rising. By focusing on what candidates can do—not just what’s on paper—firms can deliver the talent their clients need today and build pipelines that last into the future. 

To view the webinar that dives into the benefits of skills-first hiring, please click here.

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How Artificial Intelligence Is Transforming Staffing: Real-World Tools and Success Stories  https://techservealliance.org/artificial-intelligence-is-transforming-staffing/ Wed, 20 Aug 2025 13:39:38 +0000 https://techservealliance.org/?p=71797 Artificial intelligence continues to transform recruiting and staffing, offering new ways to source, screen, and engage candidates faster and more effectively. Three industry leaders shared how they’ve adopted AI to […]

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Artificial intelligence continues to transform recruiting and staffing, offering new ways to source, screen, and engage candidates faster and more effectively. Three industry leaders shared how they’ve adopted AI to address specific hiring challenges, from automating interviews to expanding sourcing reach to filtering out spam applicants, and the results they’ve seen so far. 

This is the second showcase in the AI in Action series. You can read the highlights of the first showcase here.

Alex: Interview Automation for Faster, Smarter Screening 

When Mariah Szarek, Director of Recruiting at Benchmark IT, began looking for a new solution, her team faced two common challenges: managing high applicant volume and preserving time for high-value recruiting activities. She explains that the goal was to “allow our recruiters to have more time in the day for high-impact activities,” and Alex, an AI-powered interview automation platform, provided exactly that. 

The system conducts initial video screenings, evaluates responses, and feeds results directly into their ATS. It automatically schedules and runs interviews, allowing recruiters to focus on top candidates without lengthy back-and-forth scheduling. Szarek describes it as “very customizable but also smart enough to give a great baseline,” noting that the platform generates relevant questions they can adjust to suit each role. 

Her team uses Alex to set specific skill weightings, filter out candidates who don’t meet dealbreaker requirements, and even collect feedback on the interview experience, which she says has been “overwhelmingly positive.” The payoff has been clear: calls with high-scoring candidates now take ten minutes instead of thirty, and placements are happening faster. “Overall, it’s saving us time,” Szarek says, “and we’ve already had placements happen faster because of it.” 

HireEZ: Expanding Sourcing Beyond LinkedIn 

David Berthiaume, Resource Manager at Solutia Consulting, turned to HireEZ as an alternative to LinkedIn Recruiter, seeking both cost savings and broader reach. “I wanted something that didn’t cost as much as LinkedIn Recruiter but still gave me powerful sourcing capabilities,” he says, noting that HireEZ comes in at roughly one-fifth of the price. 

The platform aggregates profiles from multiple sources including LinkedIn, Facebook, GitHub, CareerBuilder, and others, and allows recruiters to apply precise filters for skills, location, industry, years of experience, and even likelihood of being open to new opportunities. Berthiaume appreciates its built-in automated outreach but has found that customizing messages is key. “Refining the messaging with my own language makes a huge difference in response rates,” he says. 

By pulling from multiple networks instead of relying solely on LinkedIn, HireEZ helps Solutia connect with candidates they might otherwise miss. “One of the biggest advantages is that it searches beyond LinkedIn, pulling in profiles from other platforms,” Berthiaume explains. For roles requiring niche skills or when building talent pipelines for the future, that broader reach has proven invaluable. 

Boostie: Filtering Bots and Building Candidate Pipelines 

While many AI tools focus on sourcing or assessment, Nick Nordin, VP of Recruiting at BridgeView IT, wanted something that would save his recruiters’ time before they even engaged a candidate. “Boostie makes it easier for candidates to apply to our postings while screening out bots and unqualified applicants before they reach the recruiters,” he explains. 

Boostie integrates with the ATS and acts as a top-of-funnel filter, intercepting applications from multiple sources including LinkedIn, job boards, and email campaigns. It uses prescreening questions to remove candidates who don’t meet key requirements, flags suspicious IP locations, and automatically filters out spam. For Nordin, this has been a major time saver. “The bot filtering is a game changer. On LinkedIn, 90% of the first-hour responses can be spam, and now my team doesn’t have to waste time sifting through them,” he says. 

Beyond screening, Boostie has become a tool for re-engaging past candidates. Nordin’s team uses it to reach out to people in their database including former placements and silver-medalist candidates with targeted campaigns. The results have been strong. “We’ve used it to re-engage passive candidates in our database, even people we placed years ago, and the response rates have been impressive,” Nordin says. 

Key Takeaways for Staffing Leaders 

Each of these tools addresses a different part of the hiring process, but together they show how AI can remove bottlenecks and help recruiters focus on the most impactful work: 

Automate without losing control: Alex streamlines interviews while allowing full customization. Expand your reach: HireEZ opens access to candidate pools beyond a single platform. Protect recruiter time: Boostie filters spam and unqualified applicants before they ever reach the team. 

For staffing firms, the lesson is clear. AI doesn’t replace recruiters. It frees them to build relationships, advise clients, and make better hiring decisions. 

TechServe members can view this showcase here, as well as the first showcase in the series, here.

If you have an AI tool you’d like to showcase, or a tool you’d like to learn more about in a future session, we’d love to hear from you – please email staff@techservealliance.org

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Back to Economic Reality With Virtual Marketplace Companies https://techservealliance.org/back-to-economic-reality-with-virtual-marketplace-companies/ Wed, 06 Aug 2025 15:18:44 +0000 https://techservealliance.org/?p=71390 Written By: Christopher Leddy, Esq. and Maria Matkou, Esq. This article was provided to TechServe by Becker LLC. View the original article here. In line with President Trump’s prior term, […]

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Written By: Christopher Leddy, Esq. and Maria Matkou, Esq.

This article was provided to TechServe by Becker LLC. View the original article here.

In line with President Trump’s prior term, the current administration is signaling a more favorable stance toward the classification of independent contractors. In 2024, the Biden administration enacted the Rule titled Employee or Independent Contractor Classification under the Fair Labor Standards Act, 89 Fed. Reg. 1638 (the “2024 Rule”), which reinstated the six-factor “totality of the circumstances” test. Many employers viewed this test as burdensome, and the rule faced immediate legal challenges.

Once the current Trump administration took office, the Department of Labor (“DOL”) postponed oral arguments in some of these pending cases involving the 2024 Rule, signaling a reevaluation of its position. Ultimately, the DOL issued Field Assistance Bulletin No. 2025-1, announcing a pause in enforcement of the 2024 Rule and a reversion to earlier guidance—specifically, Fact Sheet #13 (July 2008) and Opinion Letter FLSA2025-2.

1. Fact Sheet #13 – “Economic Realities” Test

Fact Sheet #13 set forth the “economic realities” test to determine whether a worker is an employee or an independent contractor under the FLSA. It identifies the following factors as relevant:

  1. Opportunity for profit or loss depending on managerial skill;
  2. Investments by the worker and the employer;
  3. Permanence of the work relationship;
  4. Nature and degree of control;
  5. Whether the work performed is integral to the employer’s business; and
  6. Skill and initiative.

The DOL clarified that certain facts—such as the location of the work, the absence of a formal employment agreement, or the worker’s licensing status—are not determinative of employment status.

2. Opinion Letter FLSA2025-2 – Updated Guidance on Virtual Marketplace Companies (VMCs)

In Opinion Letter FLSA2025-2, the DOL’s Wage and Hour Division (“WHD”) revisited the employment status of individuals working through Virtual Marketplace Companies (“VMCs”), expanding upon and superseding Opinion Letter FLSA2019-6. VMCs operate digital platforms—typically accessed via apps or websites—that connect consumers with service providers for on-demand services such as delivery, house cleaning, or home repairs.

Ultimately, and in line with the current administration’s position, the WHD concluded that these service providers are independent contractors under the FLSA. The analysis emphasized several key facts: providers agreed to terms designating them as independent contractors; they were not interviewed or trained by the VMC; and they retained discretion over when, where, and how they worked. Further, providers frequently worked across multiple platforms, used their own tools, bore their own business expenses, and could hire helpers. Although the VMC set default pricing, providers could negotiate rates and retain customers who engaged them off-platform.

Applying the economic realities test, the WHD analyzed six factors:

  1. The nature and degree of the potential employer’s control;
  2. The permanence of the relationship with the potential employer;
  3. The worker’s investment in facilities, equipment, or helpers;
  4. The amount of skill, initiative, judgment, or foresight required;
  5. The worker’s opportunities for profit or loss; and
  6. The extent of integration of the worker’s services into the potential employer’s business.

In applying the foregoing factors in the matter before it, the WHD emphasized that VMC providers were not economically dependent on the platform. Notably, the services they perform were not integral to the VMC’s core business, which was limited to facilitating connections—not providing the services themselves. The WHD found that the VMCs did not supervise, direct, or control how the work was performed. As a result, these workers were not covered by FLSA employee protections, including minimum wage and overtime requirements.

The Field Assistance Bulletin No. 2025-1Fact Sheet #13 (July 2008), and Opinion Letter FLSA2025-2 reflect the current administration’s effort to revive the independent contractor regulation issued in 2021 under the first Trump administration. Although that rule was never implemented—having been repealed and replaced by the Biden administration’s 2024 Rule—the recent guidance signals a shift back toward the 2021 framework.

Under the 2021 regulation, the DOL proposed a simplified approach focusing on two core factors:

  1. Control – the nature and degree of the worker’s control over their work;
  2. Opportunity for Profit or Loss – the extent to which the worker can earn profits or incur losses based on initiative and investment.

If both core factors point to the same classification—employee or independent contractor—that classification would likely be appropriate.

In addition to the core factors, the rule included three other factors that were secondary in nature:

  1. Skill – favors independent contractor status if the work requires specialized training or skill not provided by the employer.
  2. Permanence – supports independent contractor status when the work relationship is intentionally short-term or sporadic, even if performed on a recurring basis.
  3. Integrated unit of production – favors employee status if the individual’s work is part of the employer’s core operations.

3. Not So Fast Staffing Companies

Unlike VMCs, staffing companies are structured around a business model in which placing temporary workers is central to their operations. Staffing firms actively recruit, hire, train, and assign workers to client businesses for temporary, seasonal, or project-based engagements.

The relationship between staffing firms and temporary workers tends to exhibit a degree of permanence. Although individual assignments may be short-term or intermittent, workers often remain on the firm’s roster for extended periods, receiving multiple placements over time.

Staffing firms typically provide or coordinate necessary tools, equipment, and onboarding. They also exercise significant control over assignments. While workers may decline certain placements, their overall flexibility is limited. Staffing firms may restrict concurrent employment with competing firms and often include non-solicitation or conversion fee clauses in their contracts to prevent direct employment by the client without the agency’s approval or compensation.

Temporary workers generally do not have meaningful opportunities for profit or loss independent of their wages. The staffing firm sets compensation based on its agreements with the client, and workers are not positioned to adjust pricing, assume financial risk, or manage expenses in the way independent contractors do.

Moreover, temporary workers do not operate as independent business entities. They do not market their services to the public, manage client relationships, or operate with business autonomy. Instead, the staffing firm serves as the employer of record—handling wage payments, tax withholdings, providing benefits, discipline, and providing workers’ compensation and unemployment. This structure typically places staffing firms within the scope of the FLSA, entitling their workers to minimum wage and overtime protections.

4. Policy Shift and Business Implications

The shift from the 2024 Rule to the reinstated economic realities test reflects a more business-friendly regulatory environment and reduces the likelihood that certain independent contractors will be reclassified as employees. This shift is generally favorable to staffing companies and the broader labor market. However, despite the administration’s current position, businesses should remain cautious when classifying workers as independent contractors. Unless the economic realities test is clearly satisfied, the more prudent course may be to treat such workers as employees to minimize potential legal risk. Furthermore, even though the DOL has paused enforcement of the 2024 Rule, private litigants may still attempt to invoke it in court proceedings.

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Boost Your Bottom Line: How Integrating Software With Your Service Can Catapult Staffing Firm Profitability https://techservealliance.org/boost-your-bottom-line-tech-stack/ Wed, 30 Jul 2025 14:58:53 +0000 https://techservealliance.org/?p=71386 5 Transformative Benefits of Presenting a Tech Stack with Your Solution This article was provided to TechServe by BrightMove. In today’s rapidly evolving and competitive business landscape, the stakes are […]

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5 Transformative Benefits of Presenting a Tech Stack with Your Solution

This article was provided to TechServe by BrightMove.

In today’s rapidly evolving and competitive business landscape, the stakes are higher than ever for staffing firms aiming to differentiate themselves, attract top-tier clients, and expand their service offerings. Clients are not just seeking solutions; they are looking for partners who can provide both deep industry expertise and cutting-edge efficiency. This is where the integration of a robust tech stack becomes a pivotal differentiator.

By embedding software solutions into your service portfolio, you are not merely adding value—you are fundamentally transforming your business model in a way that can redefine client relationships, unlock new revenue streams, and significantly elevate your competitive positioning within the industry.

Here are five key benefits of implementing a branded tech stack solution that not only enhances your staffing firm’s performance but supports significant growth and service expansion.

1. Increased Client “Stickiness”

When clients are actively using your white-labeled software as part of their daily workflow, they’re more likely to stick with your services long-term. It’s not just about convenience—it’s about becoming embedded in their operations.

As Forbes states, “One of the most overlooked benefits—and arguably the most important—of a unified technology platform is how it can strengthen relationships between the enterprise and its partners.” This kind of integration fosters a deeper connection, building trust and reducing friction in interactions.

As a staffing firm, your clients may need tools that help manage their hiring activities, but might not have the time, budget or resources to implement their own software solutions. By presenting your branded tech stack as part of your staffing solution, you fill that gap. Clients view your software—whether that be an ATS, VMS, onboarding tool, CRM— as a vital part of their business ecosystem that helps streamline their processes, enhance productivity, and ultimately contributes to their overall success.

Simply put: clients don’t just appreciate your software—they rely on it as a cornerstone of their business strategy, where your success is intrinsically linked to theirs.

2. Diversified Income Opportunities

Adding software to your solution can be a game-changer, offering new and recurring revenue streams that can boost your financial portfolio. While most of your income might still come from direct services to clients, including a solid tech stack can open up passive, incremental earnings. This is especially useful if your software operates on a licensing or usage model, where clients pay for ongoing access or use.

Think of this strategy like a cashback program: even after your initial engagement ends, you keep earning from their continued use of your tool. It’s a smart, forward-thinking way to maximize your current earnings and extend the financial life of every client relationship.

3. Competitive Differentiation

Incorporating a tech-forward component into your services signals innovation—and helps you stand out in a crowded market. When clients are evaluating service providers, the presence of a modern, user-friendly, and well-supported tech stack can be the deciding factor. Offering advanced tools as part of your package demonstrates that you’re not just reacting to trends, but actively leading them. It shows you’re committed to optimizing outcomes, not just maintaining the status quo.

4. Seamless Collaboration

When your service includes intuitive, integrated software, it becomes much easier for clients to collaborate with you and their own teams. This smooth integration is key to good communication and getting things done. Whether it’s through automatic updates, shared dashboards that show project progress, or centralized data, your tech stack reduces friction and keeps everyone aligned.

Instead of managing a collection of siloed tools, your clients enjoy a simpler experience. This not only saves time but also creates an environment where quicker, better decisions can be made. The result is better outcomes for your clients, as they can focus on what really matters—moving their projects forward with confidence and clarity. By providing a unified platform, you enable teams to work together more effectively, boosting their productivity and achieving success more easily.

5. Faster Innovation and Expanded Solutions

By integrating best-in-class software into your service, you’re not just solving today’s problems—you’re setting your clients up for what’s next. A modern tech stack allows you to introduce new features, scale capabilities, and continuously improve the value you deliver. Research shows that companies innovate 20% faster when they license existing technologies instead of building from scratch. That means your clients benefit from faster access to emerging tools, smarter solutions, and a service that evolves alongside their needs.

When your clients utilize a proven tech stack supported by your software providers, they experience significant economies of scale. Instead of bearing the cost and complexity of constant upgrades themselves, they benefit from the seamless integration and updates managed by the experts you partner with. This not only reduces their financial outlay but also ensures they are always equipped with the latest technology without the hassle of managing it directly. Your clients can focus on their core business operations, while enjoying the advantages of a robust, continually updated technological foundation as part of their staffing solution—and they have you to thank for it.


Incorporating a branded tech stack into your staffing solution is more than a modern trend—it’s a foundational shift in how clients want to work with you. By integrating cutting-edge software and packaging it as part of your service offerings, you position your firm as a forward-thinking leader in the industry. This approach strengthens client relationships by embedding your solutions into their daily operations, creating lasting partnerships. It opens up diversified revenue streams through licensing models, provides a competitive edge that showcases your commitment to innovation and leads to improved client outcomes and productivity. 



It’s time to analyze your tech stack and build an offering that empowers your clients with the latest technologies without the burden of managing them, while at the same time, keeping you interconnected. This decision not only drives your firm’s growth but also ensures you remain indispensable in an ever-evolving market.

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Leadership Builds Sustainable Culture https://techservealliance.org/leadership-builds-sustainable-culture/ Wed, 23 Jul 2025 06:55:09 +0000 https://techservealliance.org/?p=71176 MeeDerby provided this white paper for TechServe’s use. View the original post here. The staffing industry has a crisis of turnover and it’s not just about numbers, it’s about culture, […]

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MeeDerby provided this white paper for TechServe’s use. View the original post here.

The staffing industry has a crisis of turnover and it’s not just about numbers, it’s about culture, leadership, and opportunity. At MeeDerby, we’ve spent over three decades immersed in the world of staffing and workforce solutions, interviewing hundreds of thousands of professionals from every vertical, and helping organizations of every size, from startups to global, private equity-backed powerhouses, find the right leaders to drive their businesses forward.

The Staffing Industry’s Turnover Crisis

According to ClearlyRated’s 2024 survey of 5,000 staffing firms, turnover rates, both voluntary and involuntary, have reached alarming levels. Nearly 50% of frontline staffing employees leave their roles each year and 20% of executives. This is more than a statistic; it’s a red flag for decision makers. Every time an employee leaves, your firm loses institutional knowledge, incurs recruiting and onboarding costs, and risks damaging client relationships.

Why do staffing professionals leave? Based on our research, and depending on who you ask:

  • Poor Leadership: 57% leave because of a bad boss.
  • Lack of Opportunity: Most only make a move for clear advancement.
  • Professional Development: 41% will leave if not given growth opportunities (Randstad, 2025).
  • Work-Life Balance: Now the #1 reason for changing jobs, surpassing compensation for the first time in 21 years.
  • Community and Culture: 83% seek community in the workplace; culturally, loneliness is an epidemic.
  • Values Misalignment & Toxicity: Over 40% will leave due to misaligned values or toxic environments.
  • Compensation: Competitive, transparent pay is essential, but not the sole driver.

Short Tenure (1-3 years): Often due to poor onboarding, training, or job fit.

Mid Tenure (3-5 years): Stagnation, limited advancement, and work-life imbalance.

Long Tenure (5+ years): Desire for more money, opportunity, or flexibility.

The Turnover Cause and Cure

Based on Staffing Industry Analysts North American Internal Staff Survey 2024: How to Retain Internal Staff, we begin to see a clear picture of the causes and cures to turnover in today’s staffing companies:

  • The causes: Poor leadership, weak work-life balance, toxic environments, dead-end roles
  • The cure: Visionary leadership, shining culture, flexible work, and growth opportunities

Leadership + Culture = Growth  

As the leading executive search firm for the staffing industry, we want to highlight the unique challenges facing staffing firms,and how the right leadership and culture drive growth.

According to McKinsey’s 2025 M&A Annual Report, “at companies with strong cultures, employees at all levels understand the business’s mission and purpose, how decisions are made, how performance is measured, and individuals’ roles in achieving critical organizational objectives.”

The takeaway here is how leadership can align the company to organizational success using the following steps:

  • Diagnosing how work gets done
  • Setting cultural priorities
  • Hard-wiring and supporting cultural change

Leadership Is the Lever

Senior leadership is the #1 driver of culture and retention (Staffing Industry Analysts, 2024). When leaders are visible, values-driven, and intentional about culture, employees stay, perform, and advocate for your brand.

Culture: The Real Differentiator

Culture isn’t a buzzword. It’s the shared values, beliefs, and behaviors that define how your firm operates.

In a recent interview we conducted with the 2024 Best Places to Work Grand Prize Winner, there were several factors that contribute to their successful workplace:

  • A connected and robust team that are 100% remote and flexible
  • Great digital tools including an app that celebrates every win
  • Progressive benefits and ongoing commitment to professional development
  • Leadership obsessed with culture, fairness and generosity
  • Fair and competitive compensation tied to performance

Their results? High retention, high engagement, and outsized performance.

Growth: Where MeeDerby Steps In

As the executive search firm dedicated to the staffing industry, MeeDerby brings:

  • Unmatched industry insight: 36+ years, every staffing vertical, every size firm
  • Expertise in building leadership teams that drive sustainable cultures
  • A network of proven, high-impact leaders who know how to engage teams and deliver results

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AI in Action: Real-World Tools Driving Results for TechServe Members  https://techservealliance.org/ai-in-action-real-world-tools-driving-results-for-techserve-members/ Wed, 23 Jul 2025 06:03:42 +0000 https://techservealliance.org/?p=71168 TechServe members are rapidly adopting AI to solve real business challenges. In a recent showcase, four leaders shared in-depth details on how specific tools are streamlining operations, enhancing recruiting, and […]

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TechServe members are rapidly adopting AI to solve real business challenges. In a recent showcase, four leaders shared in-depth details on how specific tools are streamlining operations, enhancing recruiting, and creating measurable impact across their organizations. Below are deeper highlights from each presenter, reflecting not just what they use, but how they use it and the lessons learned along the way.

This is the first showcase in the AI in Action series. You can read the highlights of the second showcase here.

Apollo.io: Streamlining Prospecting and Outreach

Tyson Franco, President – SAP & AI/ML Practice Lead at Mako Professionals, demonstrated how Apollo.io consolidated multiple tools into a single platform, cutting costs while improving results.

“When we discovered Apollo, it rolled up a lot of our tools,” Tyson explained. His team had been spending over $600 a month across different B2B databases and scheduling apps. Apollo combined CRM, dialer, calendar integration, and data enrichment in one place.

He detailed a use case where his team prepared for a major technology conference. They pulled contact names, job titles, company names, and speaker session topics from the conference site. Using Apollo’s “Research with AI” feature, they built prompts that automatically generated personalized outreach messages referencing each speaker’s session content.

“One speaker might be talking about generative AI in SAP, another about HANA Cloud,” Tyson said. “The AI used that session description and company details to build a custom message. It felt personal, not like a blast email.”

The results spoke for themselves: a 47% open rate and a meaningful uptick in replies. “Industry average is maybe 20–30% open. If you get one or two replies, that’s great. Five would be phenomenal,” Tyson said. “It only takes one meeting to make a huge impact.”

Apollo also integrates with meeting recordings, which Tyson’s team uses to bridge gaps between sales and recruiting. “You can prompt it after a client call: ‘What was the job description from this meeting?’ It will summarize and even draft a description for the recruiters. Salespeople no longer miss details while they’re listening.”

Noon AI: Smarter Sourcing and Screening

Zach Ledoux, Senior Technical Recruiter at RedStream Technology, highlighted how Noon AI has changed the way his team sources and screens candidates.

“The biggest piece that sold us on Noon was their acknowledgement for fake candidates,” Zach said. Noon flags suspicious profiles—those with inconsistent work history or recently created profiles—before recruiters waste time.

Zach walked through their workflow: recruiters upload a job description, set parameters such as years of experience, location radius, and required skills. Noon then begins sourcing across LinkedIn, Dice, and other platforms. “You can train Noon as you go,” Zach explained. “If a candidate is too far away, you reject them and tell Noon why. It recalculates immediately.”

He also noted that outreach is built in. “It starts with a LinkedIn message. If they don’t reply, Noon automatically follows up with an email if it finds one. You can set how many follow-ups and when they go out.”

Currently, RedStream is working on integrating Noon with their ATS, Tracker RMS. “That’s the biggest hurdle—making sure we can tap into our own candidate database. But even now, we’re seeing more interviews booked and better candidate quality.”

Zoom Custom AI: Consolidating Tools and Enhancing Efficiency 

Pete Newsome, President at 4 Corner Resources, shared how his team adopted Zoom’s custom AI companion to simplify daily operations and reduce costs.

“We wanted to operate with fewer screens and apps,” Pete said. By switching to Zoom’s AI-enhanced platform, they replaced their phone system, Slack, and scheduling tools—while gaining an integrated knowledge base.

One standout feature is its ability to capture and organize meeting data. Pete showed how recruiters use custom templates for intake calls, reference checks, and candidate profiles. “After a conversation, the AI automatically populates those fields. Recruiters can focus on the dialogue instead of frantic note-taking.”

Zoom’s knowledge base feature impressed him as well. “We can upload client contracts and policies. Recruiters can ask, ‘What are the payment terms for Client X?’ and get an instant answer.”

“For about $35 per seat, we consolidated multiple systems,” Pete said. “That cost savings wasn’t even the primary goal—but it’s significant.”

A Custom AI Workflow: Prototyping for Recruiting Success

Ian Petersen, Partner & Project Director at NewCombin, described building a tailored AI workflow using a large language model (LLM) wrapper.

“We took a tinkering approach,” Ian explained. “We prototyped with ChatGPT to learn what we actually needed, then built a wrapper that structures the data our recruiters use.”

The system ingests job descriptions, generates technical questions, and helps recruiters assess candidates consistently. After interviews, transcripts and notes are uploaded, and the system outputs summaries categorized as green, yellow, or red flags.

“Different interviewers have different styles,” Ian said. “We needed consistency. Now every interview produces the same structured summary. It also compares candidates side-by-side and even factors in cost considerations.”

Early results are promising: “Just out of Q1, we saw a 15% productivity increase in recruiting,” Ian reported. “It allowed us to spend less time managing information and more time making decisions.”

TechServe members are finding that AI isn’t just hype—it’s driving tangible improvements in productivity, accuracy, and cost savings. From Tyson Franco’s Apollo-driven outreach to Zach Ledoux’s AI sourcing, Pete Newsome’s integrated Zoom workflow, and Ian Petersen’s custom-built solution, these use cases show how thoughtful implementation delivers real-world results.

TechServe members can view the original showcase here and the second showcase in the series here.

If you have an AI tool you’d like to showcase, or a tool you’d like to learn more about in a future session, we’d love to hear from you – please email staff@techservealliance.org

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Lighten the Load: How Staffing Firms Can Streamline IT Hardware Management https://techservealliance.org/lighten-the-load-how-staffing-firms-can-streamline-it-hardware-management/ Wed, 16 Jul 2025 18:16:17 +0000 https://techservealliance.org/?p=71084 Written by: Joe Korch, Territory Account Manager, RUSH Computer Rentals This article was provided to TechServe by RUSH Computer Rentals In the dynamic world of contract staffing, speed and agility […]

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Written by: Joe Korch, Territory Account Manager, RUSH Computer Rentals

This article was provided to TechServe by RUSH Computer Rentals

In the dynamic world of contract staffing, speed and agility are non-negotiable. Recruiters juggle demanding deadlines, fast-changing client needs, and fluctuating contractor volumes—often across a broad range of industries and tech environments. But for many firms, one persistent bottleneck remains: IT hardware provisioning.

For each new placement, there’s a fresh layer of logistical complexity. Equipment needs to be sourced, configured, shipped, supported, and—eventually—returned or repurposed. It’s a heavy lift that distracts internal teams from higher-value work like systems planning, data security, and digital transformation.

Why Traditional IT Operations Aren’t Built for Staffing

IT departments in staffing firms are typically optimized for foundational support—not full-scale hardware logistics. Yet the demands keep stacking up:

  • Unique hardware requirements based on client environments
  • Accelerated timelines for deployment
  • Increasing compliance and security demands
  • Equipment tracking, troubleshooting, and redeployment

The result? Overstretched teams and missed opportunities for strategic impact.

A Smarter Approach: Hardware as a Service (HaaS)

More staffing organizations are turning to outsourced, Hardware as a Service (HaaS) models to solve this challenge. This approach shifts the burden of IT hardware logistics to a third-party provider that specializes in scalable, responsive solutions—freeing internal teams to stay focused on what matters most: enabling talent delivery.

What can a modern HaaS solution include?

  • Hardware Variety: Access to Windows and Apple laptops, monitors, headsets, printers, and more
  • Custom Setup: Pre-installed software, secure configuration, and branding if needed
  • Flexible Terms: Short- or long-term rentals based on project timelines
  • Rapid Deployment: Next-day shipping capabilities for quick start times
  • Full Support: 24/7 technical assistance and proactive issue resolution
  • Compliance Features: Secure onboarding, encrypted systems, and optional remote monitoring
  • Asset Tracking: Visibility into device locations, usage, and status through a centralized portal

These services are designed to meet the needs of a staffing environment where unpredictability is standard, and scale can shift weekly.

Case in Point: Delivering 60 Workstations in 72 Hours

One mid-sized IT staffing firm faced a sudden request to onboard 60 developers across four states for a client’s software rollout. Their internal IT team had no capacity to meet the aggressive timeline.

They outsourced the provisioning to a HaaS partner who configured, kitted, and shipped all 60 workstations—with pre-installed software and secure credentials—within 72 hours. Equipment arrived ready to use. Contractors logged in and started work on day one.

The result? The staffing firm preserved its client relationship, minimized IT disruption, and delivered on its promise without burning out internal resources.

TechServe Alliance Members: Simplify IT to Amplify Results

Whether you place 5 contractors a month or 500, the hardware challenge is the same—and the opportunity to simplify is real.

Here’s what TechServe Alliance members should ask:

  • Is your IT team spending more time on laptops than infrastructure?
  • Are your recruiters waiting on equipment to deploy top talent?
  • Would predictable costs and next-day hardware delivery improve your client experience?

If yes, now’s the time to explore a scalable, outsourced IT provisioning model that fits the pace and complexity of staffing.

Let your IT team focus on strategy—while someone else handles the hardware.

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Winning Sales in a Shifting Market: Real Strategies for Sustainable Growth  https://techservealliance.org/winning-sales-in-a-shifting-market-real-strategies-for-sustainable-growth/ Wed, 25 Jun 2025 17:12:47 +0000 https://techservealliance.org/?p=70608 In a market shaped by longer sales cycles, heightened buyer caution, and increasing competition, succeeding in IT and engineering staffing demands more than just persistence—it requires deliberate, data-driven sales strategies […]

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In a market shaped by longer sales cycles, heightened buyer caution, and increasing competition, succeeding in IT and engineering staffing demands more than just persistence—it requires deliberate, data-driven sales strategies and a culture built for performance. 

Industry leaders from high-growth firms shared how they’re navigating today’s complex sales environment and offered tangible insights into hiring, training, KPIs, and new business development. While approaches vary, one theme emerged clearly: agility and intentionality are more important than ever. 

Adapting to New Buying Behaviors 

Sales cycles aren’t what they used to be. Decision timelines have stretched, even as client needs remain pressing. “There’s demand, but it’s taking longer for clients to make decisions—whether it’s on hiring candidates or launching new projects,” noted Joel Leege, President & COO, RedOak Technologies, and President, Board of Directors, TechServe Alliance. “We’re seeing that across firms of all sizes.” 

This elongation of sales cycles has forced teams to double down on foundational habits. At TalentBridge, Chief Sales Officer Daniel Youssif has increased the focus on outreach and in-person engagement. “We’ve elevated our meeting expectations to 15 client conversations per week, up from 10 historically,” Youssif said. “And we’re pushing for at least half of those to happen in person. That’s what it takes now to break through.” 

Two Paths to Building High-Performance Sales Teams 

Hiring and developing the right salespeople is a critical challenge—and firms are taking different approaches. At Medix Technology, Jeb Corley, Vice President, has found that investing in junior talent produces the strongest long-term results. “We tried hiring seasoned professionals—what we call the hired gun strategy—but it didn’t work for us,” he said. “Instead, we went back to developing people straight out of college. It’s a longer road, but the payoff is better.” 

Corley described a phased approach: new hires spend several months in delivery and recruiting roles to build domain knowledge and develop sales instincts. Those who rise to the top are promoted to client-facing roles. “If you bring in a class of 10, you might end up with three future stars,” he explained. “But we’ve quadrupled our President’s Club winners since we returned to this model.” 

TalentBridge, by contrast, leans into a carefully vetted “hired gun” model. “We take a dual-path approach with senior talent,” Youssif explained. “Some want to move into leadership, others just want to produce. We have room for both—but we assess them rigorously using behavioral tools and client references.” 

He emphasized that experience alone doesn’t guarantee success. “It’s not about finding rainmakers—it’s about identifying people who align with the role, the territory, and the type of clients they’ll serve,” he said. 

Leege pointed out that both models can work, depending on a firm’s structure and growth stage. “I’ve seen both approaches succeed,” he said. “It all comes down to clarity, expectations, and execution.” 

Redefining KPIs for 2025 

With buyers harder to reach and sales cycles longer, traditional metrics like call volumes and job orders are no longer sufficient. Firms are redefining what success looks like—and how to measure it. 

“We used to talk about 10-3-1: ten meetings, three reqs, one start,” said Youssif. “Now, it’s more like 15-3-1. Activity has to go up to achieve the same outcomes.” To support this, TalentBridge tracks everything from weekly client meetings to next steps scheduled and CRM documentation. “Transparency is key,” Youssif added. “We publish dashboards daily so everyone knows where they stand.” 

Corley’s team at Medix tracks a broader set of inputs. “We monitor cold calls, LinkedIn outreach, recruiter-generated leads, meeting attempts, and actual meetings,” he said. “Then we sit down monthly and ask: is the territory wrong, is the effort low, or is there a skill gap?” 

Leege highlighted the importance of adaptability in setting and evaluating KPIs. “It’s not about lowering standards when things get hard,” he said. “It’s about understanding the full picture and holding people accountable to the right activities.” 

Winning New Business Through Focus and Follow-Through 

Landing new logos in today’s market requires more than just persistence—it demands precision. “We’ve signed 87 new MSAs this year, but not all of them have immediate work attached,” Youssif shared. “We’ve had to get smarter about understanding which opportunities are real and which are just doors being propped open for the future.” 

To keep those doors open, TalentBridge combines account-based marketing, personalized outreach, and community-building tactics. “We’re launching live fireside chats with executives in our target markets,” Youssif said. “It gives our sales team a value-driven reason to engage and positions us as thought leaders.” 

Medix, meanwhile, leverages industry specialization and strategic collaboration. “If one line of business has a relationship, we work together to expand into new departments,” Corley explained. “We call it collaboration of attack.” 

They also capitalize on market conditions. “Tech unemployment is higher than it’s been in years,” Corley said. “We’re helping clients understand how to hire smarter—filling roles previously sent to consulting firms with highly qualified staff augmentation talent at a lower cost.” 

Culture is the Engine of Growth 

Behind every successful strategy is a performance-driven culture. Both Corley and Youssif emphasize recognition, clarity, and accountability as key pillars. 

At Medix, top performers are celebrated through Presidents Club trips, bonuses, and visibility. “We show junior reps what success looks like. One of our best salespeople is only 27 and making over $300,000,” Corley said. “If they can see it, they can believe it.” 

Youssif instills a sense of ownership at every level. “We reward people who diagnose problems and help solve them—who want to build, not just close deals,” he said. “That’s how we create buy-in and longevity.” 

Leege summed it up: “No matter the strategy, you still have to execute. Growth isn’t magic—it’s a function of great people doing the right things consistently.” 

If you are a TechServe member and would like to view the full webinar, click here.

Listen to the podcast version of the original webinar here.

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Adding Statement of Work to the Mix https://techservealliance.org/adding-statement-of-work-to-the-mix-sow/ Wed, 18 Jun 2025 16:00:57 +0000 https://techservealliance.org/?p=70377 Real-World Lessons and Practical Advice from IT Staffing Leaders In today’s rapidly evolving IT services market, traditional staffing alone often is not enough to meet client expectations. More and more […]

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Real-World Lessons and Practical Advice from IT Staffing Leaders

In today’s rapidly evolving IT services market, traditional staffing alone often is not enough to meet client expectations. More and more firms are discovering that building a Statement of Work (SOW) offering is strategic for long-term relevance and growth.

For leaders like Anna Frazzetto, Founder and CEO of AFM Strategic Partners, the growing buzz around SOW isn’t surprising. “SOW has become a hot topic,” she explained. “But let’s set the stage clearly — this isn’t a one-size-fits-all solution. What works for one organization might not be the right path for another, and that’s okay.” 

Still, for those ready to explore the opportunity, the path is full of promise … and challenges. A group of experienced industry leaders shared candid insights from their journeys into SOW delivery, offering a behind-the-scenes look at what it takes to succeed. 

From Transactional to Strategic: Why Make the Shift? 

For some, the transition to SOW delivery was born out of necessity. Chris Beisler, Co-Founder and Managing Partner at BridgeView IT, shared that his firm’s move into SOW was triggered by a major client implementing a VMS system. “We stuck to our guns,” he said, “and once the professional services agreement came through, it was a game changer. It opened our eyes to a better way to do business.” The result? Better margins, more strategic engagements, and the ability to walk away from VMS-driven, low-margin work. 

Sam Smith, Senior Vice President at ASB Resources, echoed that evolution. “What’s happened over the years is realizing you move from a transactional mindset to a truly consultative, strategic approach,” he said. For ASB Resources, SOW has become a major growth engine. “Our SOW business is probably up 80%. It drives bigger margins, more revenue, multi-year transactions, and you’re more of a solutions provider than just a staffing person.” 

Building the Right Internal Foundation 

Transitioning to SOW doesn’t just mean changing your go-to-market approach. It also demands internal transformation — from sales strategy to operational infrastructure. As Beisler described, “We needed contracts with language that addressed procurement needs, not staffing agreements. We hired someone to run our consulting division. We created an internal PMO. These weren’t surface-level changes — these were foundational shifts.” 

Pat Patel, CEO of East Bay Ventures and former CEO of IntelliSwift, emphasized that intentional investment in delivery talent is crucial. “We ended up hiring folks who had worked for TCS, Infosys, Cognizant, and Accenture,” he said. “You need subject matter experts and strong project managers. You can’t just sell the deal — you have to deliver it too.” 

Frazzetto reinforced that perspective: “The whole intent of SOW is that you are providing a vetted team. Clients aren’t supposed to be interviewing every team member — it’s about trust in your ability to deliver outcomes.” 

The Sales Mindset Shift 

Transitioning to an SOW model doesn’t just change what you sell — it changes how you sell. “You have to go up the value chain,” said Patel. “You can’t sell large projects at the project manager level. You need to be in front of directors, VPs, and above.” 

For firms used to the fast-paced rhythm of transactional sales, SOW sales can feel slow and complex. Smith advised patience: “Start small. Crawl, walk, then run. Don’t scrap your staffing business — you can run two strategic operations. But seek out people who understand this model. Learn it. Try it. And then scale.” 

Frazzetto added that not every salesperson is built for consultative selling. “You’ll see the ones who show curiosity and capability. Those are the people you train to lead your SOW engagements.” 

Risk, Reward, and the Road Ahead 

One of the biggest questions firms ask is: is it worth the risk? 

Patel doesn’t downplay the complexity: “There are risks, especially with fixed-bid projects. But with the right client involvement, risk mitigation strategies, and contract structures, it’s manageable. We built strong delivery teams and tools to handle it. And yes, I lost some sleep — but it was worth it.” 

The upside is significant. “Clients are absolutely willing to pay more — but they expect more,” said Beisler. “SOW work doesn’t come from the same budget as staffing. It’s not governed by rate cards. It’s based on business needs — and that creates room for value-based fees.” 

That value extends to client relationships. “Offering SOW services gives us a seat at the table for broader initiatives,” said Beisler. “It elevated our relationships. We’re being brought in during the planning stage, not just asked to fill a req.” 

Smith agreed. “You’re no longer just a supplier. You become a true partner — and the word spreads within the organization.” 

Final Thoughts: Start Smart, Scale Deliberately 

The message from those who’ve done it is clear: SOW delivery isn’t just a revenue opportunity — it’s a transformational strategy. But it must be approached with intention, discipline, and patience. 

“Start with a $100,000 deal, deliver it well, and build from there,” said Frazzetto. “This is about creating annuity business, long-term client relationships, and truly moving up the value chain.” 

As Patel concluded, “80% of the market spend is on IT services. Only 20% drops to staffing. If you want to grow, if you want valuation, if you want stickiness — you have to look at SOW.” 

If you are a TechServe member and would like to view the full webinar, click here.

Register for the third webinar in this three-part series on SOW:

Members can check out our other two webinars on SOW: 

Part 1: SOW 101 – An Overview of the Opportunities and Challenges

Part 3: Launching An SOW Offering: Next Steps

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Small Business Insights – Management Liability Insurance Explained https://techservealliance.org/small-business-insights-management-liability-insurance-explained/ Wed, 11 Jun 2025 17:08:50 +0000 https://techservealliance.org/?p=70261 Management liability insurance is a crucial component of an organization’s insurance portfolio, as it can provide coverage for a business and its leaders. Running a tech staffing business entails a […]

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Management liability insurance is a crucial component of an organization’s insurance portfolio, as it can provide coverage for a business and its leaders.

Running a tech staffing business entails a multitude of responsibilities and decisions. Whether they are making strategic choices or overseeing daily operations, business leaders are exposed to numerous risks. 

Management liability insurance consists of a package of policies designed to cover the exposures businesses and their leaders face. It is primarily designed for privately held firms, nonprofit organizations, and small, publicly traded companies. Larger businesses generally purchase their management liability insurance on a standalone basis. 

This article provides more coverage information that is generally included in a management liability insurance policy and explains why each is important for a business to have. 

Coverage in a Management Liability Package Policy 

The coverage in a management liability package policy varies based on the insurer, but it typically includes directors and officers insurance (D&O), employment practices liability insurance (EPLI), fiduciary liability insurance and crime insurance. 

  • D&O: This insurance covers a business’s directors and officers for lawsuits filed against them regarding their position-related decisions or actions. Examples of potential claims include reporting errors, misuse of funds, inaccurate disclosures, or other management errors and omissions. 

    Having D&O insurance can cover these
    claims associated defense costs and legal expenses, which can safeguard the personal assets of an organization’s directors and officers. Additionally, D&O insurance may offer coverage if an organization itself is sued. By offering this protection, a D&O policy can also serve as a recruitment tool to attract executive and board talent. 
     
  • EPLI: This coverage financially protects against employment-related lawsuits, such as those involving allegations of discrimination, harassment or wrongful termination. All organizations with employees are susceptible to these claims, no matter their size or their diligence and commitment to adhering to applicable employment laws. Having EPLI can help cover defense costs and legal expenses associated with these claims.   
  • Fiduciary liability insurance: This insurance offers coverage for claims that an employer breached their fiduciary duty by mismanaging an employee benefit plan. Allegations this insurance could respond to include improperly changing plan benefits, mismanaging plan assets, wrongfully denying benefits or providing inaccurate plan advice.  

    Fiduciary liability coverage can help cover defense and legal expenses related to these claims. It can also provide compensation to help offset the financial losses incurred by the benefit plan due to these errors, omissions, or breaches of fiduciary duty. 

  • Crime insurance: Even with robust security protocols and systems in place, businesses are still vulnerable to business-related crimes committed by employees. These can include theft, forgery, and embezzlement. Crime insurance can help provide financial assistance if those unlawful activities occur.  

Conclusion

Management liability insurance can provide tech staffing firms and their leaders with essential coverage for several exposures. Having the right policies in place is an integral part of a risk management strategy 

Want to learn more about Management Liability Insurance? Talk to the TechServe Alliance Business Insurance Program team of experts. 

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Expanding from Staffing to SOW: Strategic Growth Opportunities for Tech Staffing Firms  https://techservealliance.org/shifting-from-staffing-to-sow-strategic-growth-opportunities-for-it-firms/ Tue, 03 Jun 2025 21:03:50 +0000 https://techservealliance.org/?p=70083 Understanding the SOW Opportunity  In today’s increasingly complex IT services market, firms must evolve beyond traditional staffing to stay competitive and meet rising client expectations. One of the most effective […]

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Understanding the SOW Opportunity 

In today’s increasingly complex IT services market, firms must evolve beyond traditional staffing to stay competitive and meet rising client expectations. One of the most effective ways to do so is by expanding into SOW — statements of work. Rather than just filling seats, SOWs are about solving problems and delivering measurable business outcomes. 

As Anna Frazzetto, CEO of AFM Strategic Partners, and At-Large Director of TechServe Board of Directors, noted, “It’s not just about higher margins. What happens with SOWs is that you start becoming a trusted advisor to your client, and therefore they’re going to start coming to you even when they have staffing requirements.” 

She emphasized that this shift also helps staffing firms stand out in an increasingly commoditized marketplace. “Clients are looking for more than just bodies. They want partners who can solve problems,” she said. SOWs give you a chance to reposition your firm—from a staffing supplier to a strategic business partner. 

Additionally, Frazzetto pointed to the growing divide between procurement and business units. “The business unit wants more of a solution, not just candidates,” she explained. “Meanwhile, procurement wants to make sure that everything falls through the MSP.” Offering outcome-based services is a way to satisfy both sides—delivering results to the business while maintaining commercial discipline. 

From Staffing to Solutions: A Gradual Spectrum 

Transitioning to an SOW-based model is not an overnight shift. It’s a strategic journey that spans a spectrum—from traditional staffing, to staffing with a bow (a team covered by an SOW), to managed teams, and finally to fully outsourced solutions. Each step upward requires increased technical expertise, project management capability, and risk assumption. 

Kip Wright, CEO of Wright Path Advisors, and Vice President/President-Elect of TechServe Board of Directors, explained, “You are often able to get that business at slightly higher margins… but you’ve got to bring a different level of expertise.” 

He also emphasized that SOW work carries a different level of responsibility. Fully outsourced solutions require the provider to scope and define deliverables up front and assume all associated risks. “The implications rise in terms of benefit,” Wright said, “but the expectations also rise.” 

Risks, Rewards, and Readiness 

While the rewards of SOW work include better margins and longer-term client relationships, the risks are real. Clients expect more than candidates—they expect partners who can deliver. 

“You need to bring the how, not just the who,” Frazzetto said. “It’s not like you just show up with somebody and magically scope and size an opportunity.” 

Mis-scoping a project, both she and Wright warned, can wipe out your margin or worse. That’s why it’s essential to develop strong project scoping capabilities and to ensure technical depth within your team. “Clients expect industry and technical expertise,” Frazzetto added. “If you miss scope, you could be in the red.” 

Another challenge? Your sales team may not be equipped to sell SOW services. Selling solutions is less about transactional speed and more about consultative engagement. “This is a different level of sale,” Wright said. “It’s not about coverage and price. It’s about really building the relationship with the client so that they trust you to support their needs.” 

How to Get Started the Right Way 

For firms eager to explore SOWs, the key is to start small and smart. “Begin with the clients who already know and trust you,” Frazzetto advised. “Land your first referenceable project, then build the muscle to scale.” 

Wright added that clarity about where you want to operate on the SOW spectrum is crucial. Are you ready to manage a team? Or deliver turnkey solutions? Your decision will influence what you need to build internally—sales expertise, project managers, technical SMEs, or all of the above. 

“You’re likely to find that only 10–20% of your sales force is truly ready for solution selling,” Wright explained. “That means you’ll need to invest in structure, training, or even new roles to support the transition.” 

Frazzetto also emphasized the value of internal assessment. “Evaluate your sales team’s capability. Are they curious? Are they asking the right questions? That’s what it takes to sell solutions.” 

Ultimately, success in SOW requires careful planning, strategic hiring, and a clear understanding of your organization’s strengths. By beginning with your best relationships and focusing on specific technical areas where you already excel, firms can develop a solid foundation and grow from there. 

“It’s a journey. It doesn’t happen overnight,” Frazzetto concluded. “But when done right, it’s absolutely worth it.” 

For more details on this topic, TechServe Alliance members can watch the first in a three-part series webinar on SOW here

Listen to the podcast version of the original webinar here.

Check out other two webinars on SOW: 

Part 2: A Candid Conversation on SOW: Real Insights From Those That Are Doing It

Part 3: Launching An SOW Offering: Next Steps

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Gen-Z Hiring: 80% of Companies Now Prioritize Skills Over Degrees! https://techservealliance.org/genz-hiring-skills-degrees/ Tue, 27 May 2025 23:25:09 +0000 https://techservealliance.org/?p=69639 This blog was supplied to TechServe by IMS People Possible. View the original post here. Skills shape careers, not certificates. More than 80% of employers now prioritize skills over formal education. This shift […]

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This blog was supplied to TechServe by IMS People Possible. View the original post here.

Skills shape careers, not certificates. More than 80% of employers now prioritize skills over formal education. This shift isn’t just a passing phase—it’s a pivotal shift in talent acquisition that mirrors the rapid evolution of industries. Companies embracing this change aren’t just surviving—they’re thriving by tapping into previously overlooked talent pools.

The pivot from credential-driven hiring to skill-based recruitment reflects a broader, strategic response to necessity. As technology advances and the gig economy expands, businesses realise that tomorrow’s winning teams are built on capabilities, not certificates.

What’s Driving Skill-Based Hiring?

1. The Rise of the Gig Economy

  • The gig economy is reshaping how work gets done, favouring agility and specialised expertise over traditional structures.
  • A striking 36% of the U.S. workforce now engages in gig roles—and this figure is steadily climbing. Businesses are responding by prioritising immediate results, where skills become the core currency. The focus has shifted from long-term credentials to real-time impact.

2. Technological Acceleration

Technology is evolving at breakneck speed, outpacing the ability of conventional education to keep up. 65% of hiring managers are prepared to consider candidates based purely on their skills—regardless of formal education or past job titles. This shift signals a promising era for candidates willing to upskill and adapt.

3. The Drive for Greater Diversity

Credential-heavy hiring limits diversity by overlooking capable candidates from non-traditional backgrounds. Harvard Business Review reports that skill-based hiring enhances workforce diversity by 20%, providing underrepresented groups with fairer opportunities to succeed.

4. Meeting Generational Demands

Millennials and Gen Z crave career growth and continuous learning. A remarkable 77% of Gen Z professionals foresee the need to reskill regularly to remain competitive in the evolving job market. Companies prioritising skill development align well with these aspirations, fostering loyalty and innovation.

How Skill-Based Hiring is Transforming Talent Acquisition?

1. Redefining Job Descriptions

Forward-thinking companies are reshaping job descriptions to focus on competencies and soft skills rather than rigid degree requirements. 30% surge in job postings that have dropped degree prerequisites in the past two years. This shift broadens the candidate pool and prioritises practical ability.

2. Prioritising Assessments Over Resumes

Hiring managers are increasingly favouring real-world assessments and project-based evaluations over traditional CVs. 79% of organisations now use skill tests as part of their recruitment process. This approach uncovers practical talent that might otherwise be overlooked.

3. Internal Upskilling and Development

The boundary between hiring and workforce development is becoming increasingly blurred. 50% of employees will require reskilling by 2025. Companies are investing heavily in upskilling initiatives to future-proof their workforce, ensuring internal growth matches external demands.

4. Reducing Bias in Hiring

A skills-first approach inherently reduces unconscious bias, shifting the focus from background to performance. PwC found that organisations adopting this model experienced a 30% drop in hiring bias. By focusing on what candidates can do rather than where they studied, companies build stronger, more diverse teams.

Challenges in Skill-Based Hiring (and How to Overcome Them)

Infographic with three columns: Challenges (measuring skills, experience gaps, resistance), Description (gauging and attributing skills, tradition barriers), Solution (structured tasks, collaboration, using data to support skills over degrees in companies hiring).

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How Staffing Firms Can Win in the Age of AI-Powered Search  https://techservealliance.org/how-staffing-firms-can-win/ Wed, 21 May 2025 18:22:39 +0000 https://techservealliance.org/?p=69691 In a landscape rapidly transformed by artificial intelligence, the way businesses and candidates search for staffing partners is evolving fast. Traditional search engine optimization (SEO) is no longer the sole […]

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In a landscape rapidly transformed by artificial intelligence, the way businesses and candidates search for staffing partners is evolving fast. Traditional search engine optimization (SEO) is no longer the sole path to online visibility. Instead, AI platforms like ChatGPT, Gemini, and others are reshaping how companies get discovered and how authority is established. For staffing firms, adapting to this new environment is critical. 

Brian Jameson, Chief Growth Officer and Co-Founder of echogravity, and Pete Newsome, Founding President, 4 Corner Resources and zengig, recently shared insights into what it takes to be found in today’s AI-powered world—and how to turn visibility into growth. 

From Blue Links to Direct Answers 

The days of relying solely on keyword rankings in search engine result pages (SERPs) are fading. Today, clients and candidates increasingly ask AI tools full, natural-language questions: “Who is the best staffing agency for DevOps engineers in Chicago?” or “How long does it take to fill a data analyst role?” These platforms respond with synthesized answers, often without users clicking on any links. 

“You can have the best recruiters and the deepest database, but if you’re not discoverable in the places buyers and candidates trust, you’re out of the running before the race starts,” Jameson explained. 

To stand out in these new search environments, firms must aim to be the answer—not just an option among many. That requires visibility not just on Google but within the AI models fueling modern queries. 

What AI Looks for: Authority, Clarity, Usefulness 

AI models don’t prioritize traditional SEO checklists. Instead, they look for contextually rich, clearly written content that demonstrates authority and provides useful answers. 

“Think about your content as a conversation, not a checklist,” Jameson said. “Is it clear? Helpful? Would you be proud to have it quoted in an AI response?” 

Content that answers specific questions in a natural tone is favored. For instance, an FAQ section on a service page that addresses hiring timelines, candidate screening methods, or market-specific expertise increases the likelihood of appearing in AI-generated summaries. 

Pete Newsome emphasized the power of storytelling to cut through the noise: “There’s so much AI-generated content out there. What it often lacks is personal stories and specific examples. Those are the things that make content stand out.” 

Technical Trust Signals Still Matter 

While AI favors high-quality, question-based content, technical fundamentals are still critical. Structured formatting, proper schema markup, and fast, mobile-friendly site performance are all “signals” that help AI and search engines trust and elevate your content. 

Newsome underscored the importance of not skimping on technical setup. “You can have the best-looking website, but if it’s slow or poorly structured, you’re essentially showing up to a client pitch in sweatpants,” he said. 

Reviews, backlinks, and third-party citations are also important credibility indicators. Platforms like Google Business Profiles and review aggregators are easy wins that amplify your authority and reinforce your brand. 

Niche Focus Wins 

Trying to rank for everything is a losing strategy. The key to visibility is owning your niche. That means doubling down on specific industries, technologies, or geographies where you excel and making sure your expertise is reflected consistently across your content. 

“Everyone can say their customer service is great. Everyone can say they have a big database. But if you specialize in placing data engineers for fintech companies, make that clear and consistent everywhere,” said Jameson. 

Newsome added, “I didn’t take that advice early on, and it limited us. If you’re trying to be everything to everyone, search engines and AI tools can’t figure out who you are and what you should be found for.” 

Updating old content is another powerful tactic. Blogs and pages from previous years can be refreshed to reflect new data and search behavior, giving existing assets new life and improved visibility. 

Leveraging AI for More Than Just Visibility 

Being found is step one. The real growth lies in converting that visibility into business value. AI tools can accelerate sourcing, screening, and business development in unprecedented ways.

Newsome shared how his firm uses an emerging platform to automate business development. “It identifies job openings, researches hiring managers, scrapes public data, and sends tailored outreach—all without human input. It’s doing things that weren’t even possible six months ago.”

“We used to struggle with no-feedback black holes for candidates. Now, everyone gets contacted immediately. It’s game-changing,” Newsome added.

A New Era of Competitive Advantage 

Ultimately, firms that adopt AI and use it thoughtfully, both to increase visibility and improve operational workflows, will lead the pack. 

“The recruiter using AI will beat the one who isn’t,” Jameson concluded. “You don’t have to do everything, but you can’t afford to ignore this.” 

In a search environment where speed, authority, and relevance determine visibility, staffing firms must shift their digital strategies to stay competitive. Whether optimizing for AI discovery or using it to streamline internal workflows, the message is clear: adapt now, or risk being left behind. 

The full webinar is available here.

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Orchestration Frustration: Why Your Staffing Tech Stack Isn’t Stacking Up https://techservealliance.org/why-your-staffing-tech-stack-isnt-stacking/ Tue, 20 May 2025 19:10:42 +0000 https://techservealliance.org/?p=69654 This blog was provided to TechServe by our Supplier, boostie. Digital transformation isn’t plug-and-play. Here’s how to re-align your stack before it stacks against you. The Promise (and Problem) of Digital […]

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This blog was provided to TechServe by our Supplier, boostie.

Digital transformation isn’t plug-and-play. Here’s how to re-align your stack before it stacks against you.

The Promise (and Problem) of Digital Transformation

In staffing, tech tools are everywhere and multiplying fast.

I know this because I’ve built a few of these tools over the years.

Tools for sourcing. Tools for outreach. Tools for screening, nurturing, tracking, automating, marketing

We’ve entered the era of “digital transformation,” but for many staffing firms, that transformation has felt more like fragmentation.

Despite the spend, many agency owners are feeling the pain of disjointed workflows and confused teams. 

Why? Because buying more software doesn’t guarantee better results. And plug-and-play rarely plays well without a strategy.

A flowchart with labeled boxes: ATS, AUTOMATION, VENDORS, and MARKETING, connected by curved lines to illustrate orchestration within a staffing tech stack. Three colored squares highlight key points on the connections over a light purple grid background.
When every tool has its own playbook, your stack becomes spaghetti.

More Tools, Less Impact

When your stack grows faster than your strategy, here’s what usually follows:

  • Duplicate processes across systems
  • Low adoption due to unclear purpose
  • Messy data from disconnected workflows
  • Slower decisions because nothing’s centralized

In theory, these tools are supposed to streamline the hiring journey. In reality, they often create more work, not less.

The lines between tool A and tool B are sometimes blurred which only adds to frustration on both sides of the desk and the person cutting the checks.

So how do we address this?

The Missing Layer: Orchestration

Orchestration isn’t integration. It’s alignment. It’s the intentional design of how your tools, teams, and workflows work together toward a shared goal.

Something I still see is a desire to level-up a tech-stack with no real plan on how it can impact existing and future workflows and processes.

Think of your tech stack like a symphony. Each tool is an instrument, but without a conductor and a score, you don’t get music. You get noise.

Staffing teams need more than APIs. They need orchestration: clear rules, shared logic, and defined roles for each part of the stack.

Start with the Whiteboard, Not the Wallet

I have said this for years pertaining to marketing and automation: the hard work happens on the whiteboard. The implementation is the easy part. And the same holds true for your tech stack.

What this really means is that diagramming a process doesn’t happen in the tool, it happens outside of it. Depending on your tech stack, this can take a few hours or a few days, but the time put in sharpening your plan pays off in spades when you implement your toolset.

Here’s a simple framework to assess and realign:

  • Map: List each tool with the people who use it, the process it supports, and the purpose it serves. I like to put these on sticky notes so you can move them around on the whiteboard.
  • Scorecard: Identify redundancies, underused tools, and areas where manual effort is still required. Draw lines between stickies and start to understand the overlaps, gaps and those impacted.
  • Align: Stack-rank each tool’s business value, not just its features. Does it support a core priority? Does it reduce friction for your team or candidates or clients? This is where you’re critical – if something you currently own isn’t fitting; it might be time to say goodbye.

This is where transformation actually begins.

There is an underlying thought with the purchase of every new piece of tech that ‘it will just fix the problem..’ but the reality is that tools are only effective when they’re used the right way.

A flowchart illustrates connections in the staffing tech stack between ATS, Automation, Vendors, and Marketing using dashed arrows. Vendors and Marketing feed into Automation, which links to ATS. Four colored dots sit below Vendors on a light purple background.
Automation is the conductor. ATS, Marketing, and Vendors become instruments in sync.

Quick Wins for Better Orchestration

You don’t need to blow up your stack to regain control. Start here:

  • Assign an internal owner of orchestration (your conductor to stick with the music theme) someone who understands process, not just tools. In my experience this is an operations person who sees what’s going on in your ATS, automation tools, vendors and analytics.
  • Build playbooks that connect tools with workflows. Don’t assume automation happens magically. 
  • Rethink automation as intentional design, not “set it and forget it.” It’s a continuing process that you should keep iterating upon.
  • Measure tool impact, not just usage. If it doesn’t drive candidate flow or recruiter efficiency, it might not belong.

Final Thought: Transformation is a Team Sport

Vendors will keep selling transformation as if it’s a product. But in staffing, the real edge comes from orchestration – from building a tech stack that serves your people, not confuses them.

Digital transformation isn’t about how many tools you have. It’s about how well they work together. The best stacks don’t feel like tech at all – they feel like flow.

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Confronting a Growing Threat: How Staffing Firms Can Fight Candidate Deception in the Age of AI https://techservealliance.org/five-questions-to-assess-professional-liability-risk-copy/ Wed, 14 May 2025 09:10:55 +0000 https://techservealliance.org/?p=69426 The Evolution of Candidate Fraud As the technical hiring landscape becomes more competitive and complex, staffing firms are facing a challenge that’s both urgent and rapidly evolving: candidate deception. While […]

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The Evolution of Candidate Fraud

As the technical hiring landscape becomes more competitive and complex, staffing firms are facing a challenge that’s both urgent and rapidly evolving: candidate deception. While resume embellishment has long been a part of the hiring equation, today’s tools—especially AI—are giving candidates unprecedented means to misrepresent their skills and identities.

“Resume fraud has been around for decades,” said Ken Schumacher, CEO of Ropes AI. “But the game has changed. What used to be an embellished GPA has turned into deepfakes, teleprompters, and AI-generated answers during live interviews.”

The Tools Behind the Deception

What makes this trend particularly troubling is not just the sophistication of the deception, but its accessibility. Emerging tools such as Interview Coder can guide candidates in real-time with AI-suggested responses to technical questions. Schumacher noted that many of these tools are either free or cost as little as $30 per month—well within reach for someone eager to land a high-paying tech role.

“The tools candidates are using can now solve coding problems with over 90% accuracy,” Schumacher explained. “It makes traditional assessments much easier to bypass, and unfortunately, the barrier to entry is really low.”

But deception doesn’t stop at AI-generated answers. In many cases, firms are contending with applicants who falsify credentials, use remote proxies to sit in for interviews, or even manipulate visual tools like GitHub contributions to appear more experienced than they are. Schumacher recounted seeing candidates who were “literally mouthing words while someone else, off-camera, answered questions for them.”

Why Traditional Processes Fall Short

These tactics not only create reputational risk for staffing firms but also erode client trust—especially when a fraudulent placement results in poor performance or an early failure. The result? Lost revenue, broken relationships, and diminished credibility.

The first step is acknowledging that traditional screening processes are no longer sufficient. Verifying a candidate’s identity and evaluating technical skills based on static resumes or unmonitored assessments simply doesn’t cut it anymore.

Instead, forward-thinking firms are embracing new methods—many of which leverage the same technologies that have enabled this new wave of fraud.

“We believe in using AI to fight AI,” said Schumacher. “The goal isn’t to make the process harder for candidates. It’s to empower the right ones to prove they are who they say they are—and to give staffing firms credible proof to show clients.”

Verification as a Competitive Advantage

Verification is one key pillar. Simple steps like ID verification and browser monitoring can help ensure that the person interviewing is actually the person they claim to be. More advanced techniques—such as real-time tracking of coding behavior or browser activity—can provide deeper insights into candidate authenticity without causing excessive friction in the process.

But Schumacher emphasized that technology alone isn’t the answer. The solution lies in rethinking how firms assess talent.

“Resumes are close to obsolete,” he said. “The best resumes are probably the most fraudulent. Instead, we focus on verification through what people can actually do—short, client-specific challenges that reflect the real work a candidate would face.”

By customizing technical challenges to reflect the requirements of a specific role, firms can better gauge both capability and authenticity. These tasks are not long assessments but brief, high-impact exercises designed to create trust and differentiate submissions to clients.

“When hiring managers see a candidate’s work—something tangible—it gives them confidence,” Schumacher explained. “They’re far more likely to move that candidate forward. It’s not just about filtering out the bad actors. It’s about helping the best candidates stand out.”

Looking Ahead

Importantly, this approach doesn’t just protect staffing firms—it also helps them win more business. With growing awareness of deception, clients are increasingly looking to their staffing partners to provide not just talent, but verification. Firms that can demonstrate a rigorous and tech-enabled approach to validation are in a strong position to become trusted partners.

Still, the landscape continues to shift. Schumacher noted that the most sophisticated tools for deception—like deepfake interview participants—are only beginning to emerge. The problem, he warned, is not going away.

“There’s no magic fix,” he said. “But the sooner firms adapt their processes, the better equipped they’ll be to serve clients, protect their reputations, and maintain a competitive edge.”

In a time when technology can blur the line between real and fake, the ability to prove a candidate’s skills and identity is no longer a luxury—it’s a necessity. For staffing firms, the challenge is real, but so is the opportunity to lead.

View the full webinar on candidate deception here.

Listen to the podcast version of this webinar here.

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The Future of IT Staffing: Successfully Navigating Uncertainty and Disruption  https://techservealliance.org/the-future-of-it-staffing-navigating-uncertainty-and-disruption/ Wed, 30 Apr 2025 19:31:04 +0000 https://techservealliance.org/?p=69126 When you lead an organization like TechServe Alliance, it provides you with a bird’s eye view of the industry and key trends. Spending each day connecting with owners and executives […]

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When you lead an organization like TechServe Alliance, it provides you with a bird’s eye view of the industry and key trends. Spending each day connecting with owners and executives of IT staffing firms, you hear about both their opportunities and challenges. 

Moving into the second quarter of an undeniably challenging year, TechServe CEO Mark Roberts sat down with Subadhra Sriram, founder and host of Workforce Observer Podcast, to share his perspective on where the industry is now, and where we’re going. 

Current status: It’s complicated 

Roberts points out that the current state of the industry must be viewed with some perspective. 2024 began under the continuing cloud of a potential recession. Geopolitical tensions were multiplying. And domestically, the election campaign was well underway and cast a pall over business decision-making. Additionally, the sector was still resetting after back-to-back high-growth years. “During the post-COVID high, the median firm in our industry showed double-digit growth two years in a row,” says Roberts. “That’s just not sustainable.” 

The market has been correcting for the over-hiring that took place in post-COVID years. Revenue for the IT staffing industry is either flat or down for most firms, and unfortunately, 2025 has not offered much relief so far. There’s upheaval in Washington, and a great deal of uncertainty around the shift in policies impacting the economy. 

Uncertainty isn’t a good thing for any industry, and it is certainly causing demand-side pressure in ours. “People don’t know where to place their bets,” Roberts says. As a result, budgets aren’t being released, or worse, they’re being scaled back. Non-essential spending is being cut.  

On the supply side, the availability of talent isn’t without challenges, either. Given the uncertainty, more people are choosing security and stability, staying where they are. “Anytime movement of talent is restricted, and people are frozen in place,” Roberts says, “it’s not good for the industry.” 

What does the future hold? 

“There’s one thing I know about the future with 100% certainty: it’s going to be different,” Roberts says. “But saying that, I’ve never been one to adopt overly optimistic or pessimistic views.” 

The biggest present-day hurdle, in Roberts’ view, is anemic client demand. He sees it in the data TechServe gathers from industry stakeholders. And that data tracks with information from the filings of publicly traded firms. 

Compounding that challenge, clients are looking for firms to do more. It may be SOW work or managed services. It may be higher-level consultancy and a deeper level of understanding of their business: an expectation that IT staffing firms will do more than just provide a consultant with the needed skill set. Additionally, there’s an increasing level of competition from more traditional consulting firms to offshore resources.  

This isn’t to paint a doom-and-gloom picture, however. For Roberts, it simply means that companies need to do a better job of differentiating themselves in the marketplace. 

“The old line, ‘We provide wonderful people and great service,’ that’s not going to cut it anymore. What do you bring to the table that is unique or at least special? Why are you the go-to resource for your clients?” 

The nature of the staffing industry is such that some companies will do very well, while others just manage. But Roberts points out one fundamental truth: “If you can solve your clients’ problems, that’s the recipe for success.” 

What about AI? 

“I would say that it’s probably overhyped in the short term, but underhyped in the long term,” Roberts says. 

AI certainly offers the opportunity to automate manual tasks, improving efficiency for firms of all sizes.  

On the other hand, there is the risk that AI may enable more clients to engage in direct sourcing, eliminating some business for the staffing sector. And of course, some IT functions – basic coding, for example – could ultimately be replaced altogether by AI. Arguably, the risk is lower for the U.S. in that respect than in some other areas of the world that rely on lower-cost labor as their primary value proposition.  

Businesses are simply not yet at the point where humans can be replaced by AI at scale. But there is certainly a lot of investment in some quarters in leveraging AI and automation. Which, of course, leads to even more uncertainty going forward. 

“I don’t think anyone who says with confidence that they know where we’ll be with AI in five or ten years, truly knows what will happen.” 

In closing: Advice for growing your staffing business 

Leading a staffing company can be a lonely and isolating role with seemingly endless front-burner priorities.  

The best advice Roberts offers is this: leaders should pull away from the day-to-day periodically to take the opportunity to think strategically about the industry, their business, and their path forward; To connect with others, learning from their mistakes and successes.  

This is the primary objective of the opportunities for collaboration that TechServe Alliance provides. From the annual conference, TechServe Alliance Executive Summit, to the virtual roundtables, peer-to-peer networking and education is at the core of the organization’s work — facilitating knowledge sharing between industry colleagues with the goal of accelerating growth and profitability.  

In a climate of uncertainty, TechServe Alliance strives to provide a stable touchpoint and resource for the industry firms. “We define our success by the success of our members and stakeholders. If they’re better at what they’re doing, able to grow more, and able to serve their clients better … that, for us, is success.” 

To listen to the full podcast, click here 

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Has AI Made SEO Obsolete for Staffing and Recruiting Firms? https://techservealliance.org/has-ai-made-seo-obsolete/ Wed, 30 Apr 2025 18:33:18 +0000 https://techservealliance.org/?p=69025 This blog was provided to TechServe by our Supplier Member, echogravity. View the original blog here. For staffing and recruiting firms, the SEO game has changed. It’s no longer just […]

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This blog was provided to TechServe by our Supplier Member, echogravity. View the original blog here.

For staffing and recruiting firms, the SEO game has changed. It’s no longer just about ranking on Google for a few high-volume keywords. Now, your brand needs to show up in answers, the kind generated by tools like ChatGPT, Bing Copilot, Claude, Google Gemini, and more.

Your clients and candidates aren’t typing in simple keyword searches anymore. They’re asking questions, looking for summaries, and expecting intelligent, synthesized responses. And if your content isn’t optimized to be part of those answers, you’re invisible.

So no, SEO isn’t obsolete. But it is evolving. Fast.

Let’s dive in on what that means, and how your staffing and recruiting firm can stay visible in both traditional and AI-powered search within the staffing and recruiting industry. If anything, AI is making SEO more important, and more sophisticated.

Let’s Get Definitions Out of the Way

First things first. When we talk about SEO, we’re referring to the decades-old practice of search engine optimization. That means crafting your website’s structure, content, and meta information to achieve maximum visibility in search engines like Google and Bing. Traditional SEO relies heavily on:

  • Keyword usage
  • Domain authority
  • Page speed
  • Internal linking
  • Backlinks

But now we have a new player: AI-powered search.

Unlike keyword- or key phrase-only engines, AI search tools like ChatGPT, Perplexity, Bing Copilot, and Gemini go beyond terms and phrases. They understand user intent, natural language, and semantic relevance. These tools generate synthesized responses using context, relationships between entities, and language models trained on millions of documents.

From a business standpoint, the goal isn’t about ranking for a term; it’s about being the source of an answer.

The Shift Is Already Happening

Google still dominates search behavior. But that dominance is starting to shift.

2024 study sponsored by the U.S. Census Bureau and the Bureau of Labor Statistics found that:

  • 40 percent of people in the U.S. have used generative AI
  • 24 percent use it weekly
  • By 2027, 90 million people are anticipated to prefer AI tools as their first choice for search

So, the smart play is to prepare for today and tomorrow.

Our position at echogravity is that core concepts like search intent that have been in play since the earliest days of online marketing are still relevant. Your content needs to:

  • Focus on the needs of your target audience (i.e. What are they seeking? How can you provide information to their questions as well as essential services?)

SEO and AI Search Are More Alike Than You Think

Despite the panic in some corners of the marketing world, the core of what makes good SEO hasn’t changed. Serve the audience well. Answer their questions. Be helpful and trustworthy.

That’s just as true in an AI world as it is in Google’s algorithm.

What’s different is how those questions are being asked and how those answers are being selected. Your content has to reflect not just what your audience is searching for, but how and where they’re doing it.

Instead of typing “IT staffing firm Chicago,” someone might ask ChatGPT:
“What’s the best IT staffing agency in the Midwest that can place contract developers fast?”

That’s not just a keyword. It’s a full prompt. And if your content isn’t optimized for that kind of query, you’re invisible.

Audit Your Content with an Eye on AI

Not sure where to start? Here’s a guide on how to audit your staffing website for visibility and lead generation.

One place to start… bring back the long-tail mindset. A few years back, you may recall your marketing agency or marketing team obsessed over long-tail keywords? That concept is back with a twist.

Today, instead of just targeting niche phrases, we’re optimizing for natural language questions and conversational queries. That’s how users talk to AI.

Your content should include direct Q&A formats that mirror how real people ask for help. Focus on key areas of your site:

  • FAQs
  • Service pages
  • Case studies
  • Blog posts
  • Homepage sections

Common questions your audience might be asking include:

  • What’s the ROI of using a staffing agency vs. in-house hiring?
  • How long does it take a staffing agency to fill a role?
  • Can a staffing firm provide pre-vetted candidates?
  • How do staffing agencies handle compliance and background checks?

If these aren’t already present, you’re leaving visibility on the table.

Where Technical SEO Meets AI Optimization

To bridge the gap between traditional SEO and AI visibility, implement updates that speak both languages.

Add Structured Data (Schema Markup)

Structured data helps you tell both search engines and AI what your content is about. It’s a foundation for rich snippets and AI interpretation.

Prioritize adding:

  • FAQ Page schema for Q&A sections
  • Organization, LocalBusiness, and Article schema
  • JobPosting schema if you post openings
  • WebPage, Breadcrumb, and Review schema where appropriate

Turn to your marketing agency for help here, and there are tools like Yoast that make implementation manageable.

Optimize for Semantic Relevance

AI models connect entities and concepts rather than just matching keywords.

Use semantic keyword clusters around your core services.

For example, instead of only repeating “sales staffing agency,” add context through phrases like:

  • SDR hiring
  • On-demand sales talent
  • Ramp-up staffing for new markets
  • Hiring contract reps for sales pilots
  • Reducing time to productivity for sales hires

Design for Answer Extraction

AI tools and Google both favor content that’s easy to parse and summarize.

Use these techniques:

  • Place key questions in H2s or H3s
  • Write clear, 2–3 sentence answers
  • Format key points as bullet lists
  • Add TLDR or summary boxes at the top of important pages

This makes your content easier for AI to extract, and it improves the user experience for human visitors.

Build Topical Authority

Both traditional search engines and AI reward depth and relevance. If your firm specializes in logistics staffing, build out content clusters like:

  • A logistics staffing services page
  • A blog on reducing warehouse turnover
  • A case study showing how you cut time-to-fill
  • An FAQ about workforce availability in key regions
  • A guide to compliance and safety certifications

Link these pieces together to strengthen both SEO and topical trust.

Strengthen Backlinks and Engagement Signals

AI search engines don’t just analyze what you publish. They also assess your content’s credibility based on third-party validation and engagement.

Focus on:

  • Getting backlinks from authoritative industry sites
  • Listing your agency on directories like Clutch, UpCity, and SIA
  • Maintaining a complete, verified Google Business Profile
  • Earning and showcasing reviews and testimonials
  • Take the time to review the backlinks in your content:
  • Is it still active? (You’d be surprised how many 404 errors you might find.)
  • Is it still timely? (Is there a more recent/updated link that would be more valuable?)
  • Is the authority of the linked site valuable?

These efforts help you rank better and improve your chances of appearing in AI-generated results.

AI + SEO: The Thought Leadership Advantage

We are content marketers after all, so it probably comes as no surprise that, in our opinion, quality content is the most straightforward path to differentiating your staffing business.

Content marketing has always been about producing content that, first and foremost, serves your audience by delivering something of value – and then ensuring that content is optimized for search. In other words, create quality content first, then add the SEO juice to your marketing elixir.

It was never about coming up with a list of keywords and then trying to tie them together into a coherent thought. That commitment to quality is more important than ever. Generative AI is looking for thought leadership and case studies to draw upon. Again, this is where SEO and AI search play nicely together.

Generative AI doesn’t “scrape” content in the traditional sense but instead indexes, interprets, and synthesizes information from various sources, including blog posts and case studies. Your marketing team is going to ensure that your published content is optimized for traditional search (still the king, remember) but you can also optimize for AI. Instead of just reading keywords, AI analyzes context, intent, and structure to understand the meaning behind the text.

Content that performs well in both includes:

  • Authoritative blogs that answer common client queries with clarity, stats, and structure
  • Case studies that show your impact with clear outcomes and metrics
  • Industry commentary and well-researched insights
  • Client testimonials and use-case narratives
  • Clean formatting with organized headings and logical flow

AI doesn’t scrape content the way traditional bots do. It interprets context and meaning. That means fluff, keyword-stuffing, and vague claims won’t get you far.

A Final Thought. SEO Isn’t Dead. It’s Just Sharing the Limelight.

If you’re running a staffing or recruiting firm, SEO still matters. But it’s no longer just about keywords and rankings. You need to prepare for a world where AI is shaping how buyers discover, evaluate, and engage with agencies like yours.

The smart move is to build content and structure that works in both environments. Be the answer someone gets whether they type a question into Google or ask ChatGPT for a recommendation.

We’re already seeing our clients generate qualified leads coming from AI. If you want to get ahead of the curve, future-proof your content, and make your brand discoverable in any search format, let’s talk.

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Top IT Staffing Trends for 2025: Optimizing Business Fundamentals, Embracing Data-Driven Management and Leveraging AI   https://techservealliance.org/top-it-staffing-trends-for-2025/ Wed, 23 Apr 2025 06:53:07 +0000 https://techservealliance.org/?p=68924 As the staffing industry continues to navigate through waves of uncertainty, one thing remains clear: success in this environment hinges on adaptability, strategic planning, and leveraging technology. Industry leaders Mark […]

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As the staffing industry continues to navigate through waves of uncertainty, one thing remains clear: success in this environment hinges on adaptability, strategic planning, and leveraging technology. Industry leaders Mark Roberts, CEO of TechServe Alliance, and Andy Weiss, Chief Marketing Officer at Ceipal, got together during the recent Ceipal Connect to discuss how staffing businesses can weather the storm of economic disruption, political changes, and technological advancements. Their shared perspectives bring a fresh understanding of the industry’s landscape, offering valuable strategies for staffing firms looking to thrive in an ever-changing environment. The following are some key insights from their discussions. 

The Shift from Economic Uncertainty to Strategic Opportunity 

Throughout 2024, uncertainty loomed large over many industries, with concerns about economic downturns, geopolitical instability, and shifting political landscapes. However, as Roberts noted, “The economic downturn did not come, but that doesn’t mean uncertainty is gone. There’s still a lot of unpredictability in the business environment, especially due to shifting policies.” 

We are now seeing those major policy shifts materialize with significant increase in tariffs and more restrictive immigration policies.  As a result, many companies have moved from a reactive stance to one that emphasizes proactive planning. For staffing firms, the key takeaway is clear: businesses must focus on what they can control—particularly the optimizing their operations—while keeping an eye on the broader economic landscape. This involves staying informed, scenario planning, and being ready to pivot as new trends and challenges arise. 

AI and the Human Element: Striking the Right Balance 

Artificial intelligence (AI) continues to make waves across industries, and staffing is no exception. The rapid evolution of AI tools, like ChatGPT and machine learning, is reshaping how staffing agencies operate.  While AI is often seen as a tool for improving efficiency and cutting costs, it also presents an opportunity to support the work for the team. Staffing firms are increasingly experimenting with AI to assist in tasks such as drafting email communications for recruiters, automating marketing efforts, and streamlining administrative processes. But, as Roberts advised, It’s important not to blindly rely on the output of AI. “It’s a tool, but a tool that requires careful experimentation to understand its limits and advantages.” 

Weiss agreed, emphasizing that “AI is a part of the broader tech stack. It’s useful, but like all technology, it should be treated as a tool to enhance human efforts, not replace them.” In short, AI can amplify human capabilities—but the human element must remain central. 

Managing Talent Shortages and Navigating Labor Gaps 

A recurring challenge for staffing firms is managing the delicate balance of supply and demand, especially in industries like healthcare IT, cybersecurity, and AI. With increasing demand for skilled professionals in these sectors, staffing firms are facing a significant talent gap. 

Roberts put it bluntly: “The labor crisis [as a result of the demographic cliff] is coming. It’s inevitable. We’re already seeing a dearth of candidates in high-demand sectors like healthcare IT and cybersecurity.” 

To stay ahead, businesses must remain attuned to technological advancements that are shaping future job roles. Emerging technologies such as AI, automation, and cyber capabilities are expected to dominate demand in the years ahead. Weiss added, “AI is not just a buzzword; it’s part of a real solution to the growing talent shortage. Technology, in the form of AI and automation, will help us address these labor gaps in ways we never imagined.” 

The Role of Data-Driven Management in Scaling Success 

To thrive in this competitive and rapidly changing environment, staffing firms must embrace data-driven decision-making. Successful firms consistently rely on real-time data to optimize their operations—from understanding client needs to evaluating the performance of their recruiting efforts. 

“In today’s landscape, the most successful staffing firms are data-driven,” said Roberts. “It’s not just about intuition anymore. You need to back your decisions with data, especially when you’re making [significant] operational decisions.” 

Weiss echoed this sentiment: “Data is the backbone of every decision you make today. It’s what drives optimization in staffing and recruitment, and those who aren’t using it effectively will fall behind.” By integrating data into daily management practices, firms can remain agile and maximize profitability. 

Building a Strong Culture for Long-Term Growth 

In an industry where technology and an uncertain environment can often feel overwhelming, one key factor remains constant: culture. Companies that prioritize a culture of accountability and continuous improvement are the ones that consistently outperform their competitors. 

Roberts emphasized that despite the allure of new technologies and emerging tools, the most successful staffing firms are those that balance innovation with strong cultural values. “At the end of the day, it’s all about people,” he said. “Whether it’s your internal team, the consultants, or your clients, they are the ones that make or break your business. Technology is an enabler, but it’s not the core.” 

Weiss agreed: “Culture is what sets the best firms apart. Technology can automate processes, but people and culture are what drive sustained success.” Whether it’s fostering an environment of collaboration, focusing on employee development, or ensuring alignment with company goals, culture plays an integral role in driving long-term success. 

Looking Ahead: What’s Next for IT Staffing? 

As we look to the future, the staffing landscape is continuing to evolve. Changes in policy, technological advancements, and shifts in the labor market will all play a role in shaping the industry. However, one thing remains clear: firms with strong leadership that are strategic and smartly embrace new technology will continue to thrive. 

Roberts emphasized, “The future is about aligning with the right technologies but also staying true to your business fundamentals. Focus on the relationships and the people that make your business successful.” 

Weiss concluded: “It’s an exciting time for the industry, but it’s crucial that staffing firms continue to innovate while also holding onto what makes them successful—strong leadership, solid culture, and operational excellence.” 

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Cyber Risks & Liability https://techservealliance.org/cyber-risks-liability/ Thu, 17 Apr 2025 05:56:04 +0000 https://techservealliance.org/?p=68789 Mitigating VPN Vulnerabilities A virtual private network (VPN) is a type of technology that uses an encrypted connection to route internet traffic through a remote server, granting a user access […]

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Mitigating VPN Vulnerabilities

A virtual private network (VPN) is a type of technology that uses an encrypted connection to route internet traffic through a remote server, granting a user access to certain digital services while masking their online activity. Connecting to a VPN establishes a safe tunnel between a user’s device and the internet, making it seem as though they are browsing from the server’s original location and protecting their data from being intercepted by malicious parties. Over the years, VPNs have become a crucial cybersecurity tool for many companies, particularly those that permit employees to work from different locations and use public Wi-Fi networks.

Although VPNs are intended to benefit businesses by providing secure gateways to private IT infrastructure and simplifying remote access capabilities for staff, they must be launched correctly, adequately safeguarded and updated regularly to remain effective. Otherwise, they can end up becoming attack avenues for cybercriminals rather than protective barriers. What’s worse, VPN vulnerabilities are on the rise. According to a recent survey conducted by threat intelligence and security research firm Zscaler ThreatLabz, over half (56%) of companies have experienced VPN-related cyberattacks in the past year

As such, it’s imperative for businesses to clearly understand the cybersecurity challenges tied to VPNs and take steps to mitigate them. This article provides more information on key VPN vulnerabilities, their possible ramifications, and the associated risk management measures that companies should consider.

Common VPN Vulnerabilities

Because VPNs provide a bridge between the internet and a company’s internal systems, they are an attractive target for cybercriminals. Consequently, hackers have been increasingly exploiting VPN vulnerabilities to launch cyberattacks. These vulnerabilities can stem from a range of factors, including:

  • Poor encryption protocols—A VPN’s encryption standards play a major role in keeping users’ online activity and data private. Most sophisticated cybercriminals can bypass VPNs with outdated encryption protocols, creating significant cybersecurity exposures.
  • Weak authentication mechanisms—In addition to poor encryption standards, minimal or otherwise weak authentication requirements can make it easier for hackers to infiltrate a VPN and its surrounding IT infrastructure through brute-force techniques.
  • Software issues—An effective VPN requires routine software updates and proper patch management. When a VPN is left unpatched, this can lead to bugs, glitches and other technical problems, all of which increase the risk of a cyberattack
  • Coding concerns—A VPN also relies on accurate coding to operate as intended. If this code gets misconfigured, whether due to a system breakdown or human error, the VPN won’t function correctly, rendering it useless against cybercriminals.

Upon exploiting a company’s VPN vulnerabilities, cybercriminals may be able to infiltrate its larger IT infrastructure, ultimately disrupting critical operations, creating possible supply chain complications and compromising confidential data. One example of this type of incident is the Ivanti Pulse Connect Secure data breach, in which foreign attackers identified a zero-day exploit—a software vulnerability unknown to developers or other parties capable of fixing it—in the IT provider’s VPN hardware. From there, the attackers leveraged the exploit to infiltrate several U.S. government agencies, defense firms and financial institutions using the VPN. It took months for the affected organizations to detect the breach, leaving multiple federal systems and a host of sensitive data compromised for an extended period.

Consequences of VPN Vulnerabilities

Cyberattacks resulting from VPN vulnerabilities can pose a number of consequences, such as:

  • Financial and reputational fallout—As with any cyberattack, a VPN-related incident can cause substantial financial losses for the impacted company, especially when it involves compromised data, stolen corporate funds and prolonged operational disruptions. Depending on the nature and scale of the incident, it may also foster frustration and distrust among customers and other key stakeholders, resulting in considerable reputational damage.
  • Legal and compliance issues—A company could encounter serious regulatory ramifications if certain types of sensitive data (e.g., stakeholders’ personally identifiable information, health records and financial details) are compromised in a VPN related cyber incident. In particular, stakeholders whose information was exposed may file costly lawsuits against the company for failing to protect against the attack. Additionally, the company could face fines and other legal penalties for breaking any applicable data privacy or breach notification laws both during and in the immediate aftermath of the incident.
  • Ongoing attacks—During a VPN-related cyber incident, hackers may infect certain elements of the impacted company’s larger IT infrastructure with malware or other harmful bugs and viruses, paving the way for ongoing attacks. In many cases, VPN vulnerabilities lay the groundwork for cybercriminals to deploy ransomware attacks, distributed denial-of service events and man-in-the-middle incidents, each of which are known to cause major damage. According to the latest Coalition Cyber Threat Index Report, 60% of cyber insurance claims stemming from ransomware attacks involve VPN exploitation.

Risk Mitigation Strategies

Considering the potentially severe ramifications of VPN vulnerabilities, it’s essential for businesses to leverage effective risk management techniques. Here are some best practices for companies to implement:

  • Conduct risk assessments. First and foremost, businesses should review and document their unique cyber risks, taking into consideration their key operations, essential services, sensitive data and digital assets. From there, businesses can better determine what type of VPN will be most effective for their particular circumstances.
  • Select a trusted service provider. Businesses should carefully research different VPN service providers and choose one that fits their needs. Specifically, the provider should have a solid reputation and display a commitment to cybersecurity. The best VPN service providers typically provide built-in encryption features and have no-logs policies, meaning they won’t store any data regarding users’ online activity. Some providers may even offer extra security features, such as kill switches for compromised programs or devices.
  • Enable security features. Businesses should be sure to enable any security features available to strengthen their VPNs, including anti-malware programs, adblockers, multifactor authentication protocols and data leak prevention tools. In addition to the VPN software itself, these security features should be updated regularly. If possible, businesses should consider enabling automatic software and security updates or deploying patch management solutions to stay on track with such updates.
  • Monitor network activity and perform audits. Various threat detection tools (e.g., endpoint detection and response solutions) can help businesses closely monitor their VPN connections and identify any unusual network activity in real time. These tools can allow businesses to address connection issues as swiftly as possible and respond to potential threats before they escalate to large-scale attacks. In conjunction with such tools, businesses should also perform routine security audits to help detect any ongoing VPN vulnerabilities (e.g., misconfigured code) and make adjustments as needed.
  • Educate staff. Employees are often the first line of defense against cyberattacks. With this in mind, businesses should educate their staff about proper VPN usage. This includes creating strong passwords; using safe devices; and only accessing data, systems and services deemed critical to fulfilling their job roles. Businesses should also provide employees with ways to identify potential VPN vulnerabilities or suspicious network activity and outline how to respond if a VPN-related cyberattack occurs.
  • Consider alternatives. In some cases, VPNs may not be worth the risks they pose to businesses. Under these circumstances, businesses should consider alternative remote access solutions, such as zero-trust network access, virtual desktop infrastructure, secure access service edge, software defined perimeters or privileged access management tools.

Conclusion  

Even though VPNs can help companies boost their cybersecurity measures, they may create additional vulnerabilities. Left unmanaged, these vulnerabilities could easily be exploited by cybercriminals. Fortunately, by upholding effective VPN security measures, businesses can minimize possible cyberattack avenues and avoid costly losses.

Contact us today to learn how TechServe’s Business Insurance Program can help you manage cybersecurity risk.

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Advancing Women in Tech Leadership: Real Advice from Industry Leaders https://techservealliance.org/advancing-women-in-tech-leadership-real-advice-from-industry-leaders/ Thu, 10 Apr 2025 08:42:23 +0000 https://techservealliance.org/?p=68710 The tech industry is full of bright minds and big ideas. But leadership still doesn’t look as diverse as it should. It’s common for women in tech leadership to be […]

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The tech industry is full of bright minds and big ideas. But leadership still doesn’t look as diverse as it should. It’s common for women in tech leadership to be the only female voice in the room. 

If you’re a woman in tech, you might be wondering how to move forward. If you’re a leader, you might be wondering how to better support the women on your team.

The good news is that there are clear ways to create stronger, more inclusive teams. It starts with how we lead, mentor, and grow talent. In this blog, we’ll break down practical insights from four women who’ve done just that.

Monica Dominic is the Chief Client Officer at ProTeam Solutions. Melissa Manley is the CFO of Seneca Resources and a board member of the Women’s Entrepreneurial Opportunity Project. Daria Morano is the COO and Co-Owner of Solving IT, with a background in both operations and music. And Betsy Robinson is the CEO of Tier 4 Group and Board President of Women in Technology.

Together, they share leadership tips for women and valuable advice on career development for women at all stages and levels.

Leadership Is About People.

Melissa Manley shares how a focal moment in her career came not from a technical challenge, but a human one.

Leading a company with financial difficulties, she quickly realized that success hinged not on processes but on people. She focused on three things: training under-experienced staff, empowering them to lead, and communicating transparently across all levels.

“It’s okay to make mistakes,” she told her team. “I’ve got your back.”

This built trust, loyalty, and eventually, progress. And it taught her something many leaders still forget: when you build the right team, everything else follows.

Take Initiative, Even When It’s Uncomfortable.

For Daria Morano, leadership started early…before she had the title. As a young woman in sales trying to break into a more technical role, she didn’t just wait for an opportunity. She created one. Daria built an internal tool that automated workflows for her entire team, even though she was “just a BDR.”

“It was very awkward… they’re like, who is this woman?” she says. But she didn’t back down. With help from a supportive male colleague, her solution was rolled out across teams.

Her advice is to take initiative. Speak up. And don’t be afraid to challenge the status quo. Even if it feels uncomfortable.

Build a Network Before You Need One.

Betsy Robinson knows a thing or two about networking. She is the CEO of a leading tech staffing firm and President of Women in Technology Atlanta, and has built her career on authentic connections.

“You can’t make withdrawals where you haven’t made deposits,” she advises. “Build the network when you don’t need the network.”

For Betsy, networking is more about relationships than about transactions. She encourages professionals to seek out diverse voices, connect across departments, and give before you expect anything in return.

One of her favorite tools is strategic volunteering. It builds both skills and relationships, especially in areas your current job might not touch.

Mentorship: Find Your Champion, Be a Champion.

The power of mentorship is something all four women in tech leadership emphasized.

Melissa credited her former boss, Tom Adams, for seeing her potential when she didn’t yet see it herself. “He was more of a coach than a boss,” she states. He challenged her, believed in her, and helped her rise.

Now, she’s passing that on. “Everyone needs a champion,” Melissa emphasizes. “I can teach someone a system, but I can’t teach them drive.”

Daria and Monica echo that point: you don’t need to be in a leadership role to mentor someone. Even if you’re early in your career, you have value to share.

Let’s Redefine Leadership for Women!

When asked what makes a great leader, Daria focuses on curiosity and adaptability. “We are so scared as women sometimes to say, ‘I don’t know.’ “But staying curious and building around people’s strengths instead of their job titles is where the magic happens.

Melissa adds that tone and timing matter when giving feedback. This is something her mentor modeled well. “Someone else could have delivered the same message, and I’d have been defensive…but not him.”

Diversity Is a Mindset.

Diversity in tech can bring in more valuable perspectives and opinions. But this is only the case when everyone feels safe and comfortable contributing and speaking up.

Melissa Manley helped launch a Diverse Voice Alliance at her company. It was a space that started with open conversations and eventually led to stronger collaboration and problem-solving across teams.

“If people feel like they belong, they feel like they’re in a trusted and safe environment,” she says. And the numbers back it up: highly engaged teams are 23% more productive.

Work-Life Balance Starts with Prioritizing Joy.

Daria has a fresh take on balance: “We talk about boundaries all the time, but not prioritizing joy, existence, happiness… You have to renew your energy.”

She mentions how her passion for music helps her stay grounded and connected, and how creating space for passions outside work can inspire creativity and authenticity.

“I want to inspire others, not impress them,” she says. “Stop apologizing. Stop fearing imperfection.”

The Road Ahead: We Still Need More Female Tech Leaders.

Even with all the progress, the numbers are clear: women still make up only 28% of the tech workforce.

Betsy wants that to change: “I want to see a tech field where women aren’t the exception.”

That means more than just hiring. It means creating inclusive cultures, investing in mentorship, addressing pay equity, and making sure every woman knows: she belongs.

Inspiring Women in Tech Leadership

Leadership isn’t one-size-fits-all and it certainly isn’t reserved for people with titles or years of experience. It’s about leading with empathy, building others up, and daring to raise your hand. Yes, even when no one calls on you.

To quote Monica Dominic’s career advice for young women (and more experienced ones alike): “Stay curious. Ask questions. Be open-minded.”

And don’t forget to lift others as you rise. That’s how we build not just better teams, but a better future for women in tech.

The full webinar is available here.

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Navigating Uncertainty: Market Trends, AI Disruption, and Sales Strategies  https://techservealliance.org/navigating-uncertainty-market-trends-ai-disruption-and-sales-strategies/ Wed, 02 Apr 2025 21:51:49 +0000 https://techservealliance.org/?p=68532 Recent conversations with our members gave us valuable insights into how firms are adapting to market shifts, leveraging AI, and refining their business strategies to stay competitive in a changing […]

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Recent conversations with our members gave us valuable insights into how firms are adapting to market shifts, leveraging AI, and refining their business strategies to stay competitive in a changing landscape. Below are some highlights that cover evolving hiring trends, the impact of AI on staffing, challenges with sales and workforce retention, alternative business models, and emerging roles. 

Q1 2025 Business Climate

Business conditions remained mixed, with many members reporting a slower first quarter compared to late 2024. While some saw positive momentum, others experienced hiring slowdowns, contractor conversions to full-time roles, and extended time-to-hire cycles. There was a notable shift toward selective hiring and a cautious market approach. 

AI’s Impact on Hiring & Workforce Trends 

  • AI-related roles are growing in demand, but companies are primarily upskilling existing engineers rather than hiring dedicated AI specialists. 
  • Businesses struggle to define AI job descriptions, and AI adoption varies by industry—healthcare, for instance, remains slower in implementation. 
  • AI is making individual developers more efficient but raises concerns about long-term job security in software engineering. 
  • Some staffing firms are using AI tools for candidate screening, training, and outreach, while a few have developed custom AI solutions. 
  • Despite concerns about job displacement, many believe AI will shift workforce needs rather than eliminate jobs. 
  • The rise of AI is driving demand for new roles such as Prompt Engineers and AI-fluent Business Analysts. 
  • Critical thinking and understanding of business processes are becoming more valuable than just coding skills. 

AI Tools & Data Challenges 

  • Firms are experimenting with AI sourcing tools to enhance recruiting efficiency, though adoption remains a challenge. 
  • LinkedIn’s crackdown on data scraping tools like Apollo and Seamless is impacting sourcing strategies. 
  • Securing proprietary data and preventing exposure via AI tools like ChatGPT is becoming a priority for some clients. 

Remote Work & Market Shifts 

  • The demand for US-based software engineers is uncertain, as companies explore global hiring options facilitated by new payroll solutions. 
  • Network engineers and DevOps professionals remain in demand, while IT hiring overall remains subdued. 
  • Remote work expectations are evolving, with some developers becoming more flexible while others continue to demand fully remote positions. 
  • Some firms are diversifying beyond tech, placing professionals in legal and education sectors. 

Sales & Hiring Challenges

  • Companies continue to face difficulties in hiring and retaining sales talent, particularly regarding compensation structures and training investment. 
  • The debate continues over hiring from within the industry versus bringing in sales professionals from other sectors. 
  • Some firms reported challenges with onboarding and retaining sales hires, with long lead times before new hires become profitable. 
  • New sales hires are expected to cover costs within their first year, but real ROI often comes in years 2-3. 

Statement of Work (SOW) & Business Model Shifts 

  • Firms exploring SOW work emphasized its advantages over traditional staffing, such as higher profit margins and deeper client relationships. 
  • However, transitioning to SOW requires a different sales approach, and firms noted that growth in this area has been slower than some industry reports suggest. 

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PeerSource Acquires ConsultisIT’s IT Staffing Book of Business in Strategic Partnership https://techservealliance.org/peersource-acquires-consultisits-it-staffing-book-of-business-in-strategic-partnership/ Wed, 02 Apr 2025 17:57:52 +0000 https://techservealliance.org/?p=68526 PeerSource, an IT staffing and services firm, has acquired the IT staffing book of business from ConsultisIT, the technology-focused division of Consultis. This strategic transition comes as Consultis rebrands to […]

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PeerSource, an IT staffing and services firm, has acquired the IT staffing book of business from ConsultisIT, the technology-focused division of Consultis. This strategic transition comes as Consultis rebrands to Consultis Search Group (CSG) and shifts its core business to executive search and recruiting services tailored to the staffing industry.

After four decades of leadership in IT staffing, Consultis’ Managing Partner Jamie Delsing is stepping away from day-to-day IT staffing operations to launch CSG, an executive search firm helping staffing companies recruit elite sales, recruiting, and leadership talent.

In alignment with this change, all IT service agreements and active client engagements from ConsultisIT are now being transitioned to PeerSource. This move ensures continued, uninterrupted service and offers clients the benefit of working with a highly respected and specialized IT staffing & recruiting provider.

“This decision is deeply personal. PeerSource is not only a proven partner but a trusted relationship I’ve had for years,” said Jamie Delsing. “I’m confident they’ll carry forward our legacy of excellence with integrity, transparency, and care.”

John Snellings, CEO of PeerSource, sees this partnership as an opportunity to build on a strong legacy and deepen PeerSource’s impact in the IT staffing space.

“We’re honored to take the baton from ConsultisIT,” said Snellings. “Our goal is to make this a seamless transition while providing the same high-quality service, responsiveness, and tech talent solutions that clients have come to expect.”

As ConsultisIT steps into this next chapter, its legacy continues through PeerSource’s commitment to people-first staffing, and CSG’s mission to empower the staffing industry from within.

Trevor Richards, Director of Client Services at PeerSource, will lead the integration and ensure continued support for valued clients and consultants from ConsultisIT.

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Mastering Outreach: How to Build Awesome Business Development Campaigns https://techservealliance.org/mastering-outreach-how-to-build-awesome-business-development-campaigns/ Wed, 02 Apr 2025 06:58:30 +0000 https://techservealliance.org/?p=68471 Client outreach is a top priority for the staffing industry right now. In fact, according to recent research by SourceWhale, 90% of staffing businesses list business development as a critical […]

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Client outreach is a top priority for the staffing industry right now. In fact, according to recent research by SourceWhale, 90% of staffing businesses list business development as a critical focus for 2025 – even higher than filling jobs.

Tapping into over 100 million data points from the recruiting firms that comprise their client base, TechServe Supplier Member SourceWhale has unique insight into the outreach techniques that work … and those that don’t. Below are some insights developed from that data that can help your team win more business this year and beyond.

Know your targets

Imagine if your team could spend most of their time working with clients that generate more revenue, more quickly. Unrealistic? Not necessarily. Understanding your ‘Ideal Client Profile’ (ICP) is the key.

Scott Littrell, Vice President of Sales with SourceWhale, recommends segmenting your client base into three tiers based on two factors: fill rate and time to fill.

A client with a high fill rate and a short time to fill? Top tier. A mid-tier client is one for which one of those two metrics is average. Clients where both the fill rate and time to fill are average form your third tier.

Then look for similarities. What are some of the things your first-tier clients have in common? Those are the characteristics of your ICP. Focus your outreach efforts on companies that share those features.

Just as importantly, identify things that your third-tier companies have in common, so that you can appropriately prioritize companies that share those characteristics.

According to Littrell, fewer than half of firms surveyed by SourceWhale have a good understanding of their ICP. And the payoff is significant. According to the company’s data, when working with companies who fit the ICP mold:

  • Client win rates are 56% higher
  • Time to fill is 36% less
  • Client retention rate is 82% (versus 61%)

Persistence is key

An outreach campaign based on a single touchpoint to each prospect will never be as successful as a multi-touch approach, no matter how many prospects are in the funnel. 

SourceWhale data shows that three touchpoints will result in 50% more meetings than a single contact. In fact, 71% of meetings are booked on or after the third contact.

Littrell suggests that for the best results, cold outreach campaigns should plan for eight separate touchpoints. “We’ve found that the response rate and the meeting rate go up by each step in the campaign, up to eight. Once you get to nine, the curve starts to flatten out. It still goes up, but more slowly, and there’s a diminishing return.”

Leverage the multi-channel advantage

An outreach campaign based on eight touchpoints doesn’t mean eight emails. The most successful campaigns contact prospects using multiple channels. According to SourceWhale data, a campaign using three or more contact methods results in double the meetings booked, as compared to only a single channel.

Channels may include:

  • Email
  • LinkedIn connection requests
  • LinkedIn InMails
  • SMS text messages
  • Phone calls

When it comes to the highest win rate for meetings booked, you might be surprised to learn that the humble phone call wins the day, with a conversion rate of over 30%.

The timing of those phone calls is also a critical factor. SourceWhale data shows that meetings are booked at a 37% higher rate when a phone call is used to follow up within 24 hours of an email.

Show me you know me

In this age of mass automation, it’s easy to believe that quantity trumps everything else – that the firm who sends the most outreach messages will win.

Not so. In fact, one could argue the reverse – that in this age of AI-driven mass communication at scale, personalization is more important than ever. SourceWhale data suggests this is the case: personalized messages generate two and a half times the results as compared to generic messaging.

“You’re going to stand out if you’re using different approaches,” Littrell says. “That’s just a level of persistence that people aren’t used to right now. They’re used to these AI automated emails. If you’re reaching out with multiple channels, they’re going to realize that there’s a real human on the other end that’s trying everything in their power to get in touch. You’ll be recognized.”

When it comes to phone calls, quality drives conversation. Respectfully giving control to the prospect simply by asking for permission to take a bit of their time drives far better results. And according to SourceWhale data, the cast majority of prospects – about 80% – willingly give that permission.

How else can you show that your call to that prospect is meaningful, and intended specifically for them? Do your research. Show that you know something about the company and what their pain points are when it comes to recruiting talent.

MPC (Most Placeable Candidate) campaigns generate six times the responses as general outreach. They’re an additional way to show you’ve done your homework on the prospect company, plus they offer more ways to ‘pivot’ from the initial reason for the call to a broader conversation.

Win, assess, repeat

Developing a winning outreach strategy isn’t a one-time project. The best prospectors on your team have a process … whether they realize it or not. That process can be defined, and it can be replicated. Once again, doing so separates you from the pack. Only 18% of teams, according to SourceWhale data, have a repeatable process in place for business development.

Secure more business in 2025

Is your sales team positioned to book more meetings and win more client business this year? These tips and data points were shared in a recent TechServe webinar that you can watch here. Don’t miss the role that video outreach, text messages, and even gifs and memes can play in your outreach strategy!

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State of the Industry: IT & Engineering Staffing Trends & Economic Outlook https://techservealliance.org/state-of-the-industry-it-engineering-staffing-trends-economic-outlook/ Tue, 25 Mar 2025 06:28:43 +0000 https://techservealliance.org/?p=68202 How Uncertainty is Impacting the Tech Staffing Industry The IT and engineering staffing industry continues to navigate a landscape of uncertainty. On March 20, 2025, TechServe Alliance CEO Mark Roberts […]

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How Uncertainty is Impacting the Tech Staffing Industry

The IT and engineering staffing industry continues to navigate a landscape of uncertainty.

On March 20, 2025, TechServe Alliance CEO Mark Roberts and Jim Janesky, Principal Forest Advisory LLC and Investment Bank, delivered the highly anticipated Q1 State of the Industry (SOI) update. This interactive webinar provided a data-driven look at the economic, employment, and policy shifts shaping the industry. A central theme emerged from both the speakers and live poll participants: market conditions remain sluggish, with demand hindered by widespread uncertainty about the future.

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The overwhelming majority of participants in real-time polls responded that the current market for IT/engineering services was “slow” with 54% responding that the market is either down 0-10% or flat to date in 2025. Sixty-nine percent attributed the anemic demand for IT/engineering staffing and direct hires to an uncertain future.

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Uncertainty Impacts Economy and Industry

So, what’s causing this chill? According to Roberts: Uncertainty.

“There have been 92 executive orders, certainly a record, to eliminate or bare-bone a number of agencies. And then the Department of Government Efficiency has resulted in a firing of employees across multiple agencies. None of this is to cast an opinion one way or another, but just to share that this is really reflecting a lot of change very fast and, consequently, resulting in uncertainty among businesses,” Roberts said.

Employment-based, high-skilled, immigration has generated an internal debate within the administration, with Elon Musk supporting H-1B visas and deputy policy advisor Stephen Miller opposing. At the same time, the new Attorney General Pam Bondi and Secretary of Homeland Security Kristi Noem have taken quick action to enforce immigration laws and initiate deportations. Roberts said, “Although [immigration enforcement has] been focused on the undocumented or lower skilled workers, we fully expect some of that to creep into the higher skilled skill sets as well. . .. USCIS will once again likely focus on fraud detection versus processing speed.”

The new Labor Secretary Lori Chavez-DeRemer has promised support for legal, employment immigration and more favorable actions for employers related to independent contractors and overtime regulations.

In the last days of the previous administration, DHS finalized the long-awaited Modernizing the H-1B Visa program regulation. The Final Rule includes many changes supported by TechServe. Roberts said, “There are some favorable developments on that front in terms of definition of specialty occupation, a Bonafide job offer, but again, they have continued to distinguish with third party placements, something for us to watch for additional issuance of policy guidance and certainly in any legislation.”

Economic and Employment Landscape: Cyclical vs. Structural Trends

Roberts gave an overview of the economic and employment landscape, looking at the data for cyclical trends and structural trends. Roberts explained that while Inflation has declined, it remains “sticky;” GDP is down from the all-time high at mid-year 2024 as Q4 came in at 2.3%, but still decent; jobs added in February were modestly below expectations but respectable. He noted that the JOLTS report shows a 1 to 1 ratio of available jobs to job seekers— down from the 2 to 1 high in the immediate aftermath of the pandemic the jobs market moves in balance.

With the overall unemployment rate holding at 4.1%, we may be seeing a structural shift to perennially tighter labor market. Roberts said that unemployment rates in IT and engineering remain low at 2.7% and 2.4%, respectively.

For many open positions, there is a lack of workers with the requisite skills. The skills gap will continue to be a challenge for the IT and engineering staffing industry. Roberts added, even though labor feels a little more plentiful, there remains secular or structural trend of lack of sufficient talent to meet the needs of businesses.

So, What Does this Mean for the Industry in 2025?

Jim Janesky provided his overview of current trends and presented the forecast for IT and engineering staffing industry.

Janesky said, “I agree . . . that uncertainty certainly is the overriding theme right now, both in the economy and within the staffing industry as a whole.” He discussed a wide range of factors impacting the industry and the economy, including the stock market, tariffs, deep government funding cuts, looming layoffs in government and in the private sector. He predicted a continued decline in GDP, largely influenced by consumer spending. Additionally, AI will not only influence labor markets but supporting data centers will significantly increase power demands increasing consumer utility costs.

He also agreed with Roberts’ prediction regarding pockets of growth for new job orders, a leading indicator of eventual placements and IT staffing revenue, “So for 2025 we expect to start off as a choppy year” So, what is overall going on? Just like the stock market, corporate decision makers hate uncertainty and we’re unlikely to see budgets at companies increase or get released until there is more economic visibility. “I think that does revolve around tariffs more than anything right now.”

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Roberts concluded, “We see some signs of improvement, projecting 1–3% growth in the IT staffing sector. Still, we expect that performance will be choppy throughout the year and uneven across firms. Clarity on policy issues and their impact on business confidence will be critical for us to see meaningful and sustained improvement.”

TechServe Alliance members can access the recent State of the Industry: A Quarterly Webinar Series here.

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Building a Personal Brand on LinkedIn: Overcoming Barriers and Achieving Success in 2025 https://techservealliance.org/2025-personal-brand-linkedin/ Wed, 19 Mar 2025 18:11:34 +0000 https://techservealliance.org/?p=68113 This article was provided by our Supplier Member, Paiger. The author of this article is Dave Cox, VP Sales – North America, Paiger. In recent years, LinkedIn has become a […]

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This article was provided by our Supplier Member, Paiger. The author of this article is Dave Cox, VP Sales – North America, Paiger.

In recent years, LinkedIn has become a powerful platform for recruiters to establish and grow their personal brands. As we navigate through 2025, the importance of a strong personal brand is more significant than ever, with individuals and businesses alike striving to enhance their visibility and engage meaningfully with their networks. Recruiters without a strong personal brand will lose business to those who have invested in building their presence.

Here are some of the common barriers that recruiters face when building a personal brand on LinkedIn, and how they can overcome these challenges effectively.

Understanding the Barriers

One of the most prevalent challenges in personal branding is the fear of judgment. Many people hesitate to post content due to concerns about potential criticism or feeling like they’re not enough of an ‘expert’ to share insights surrounding their niche. This fear often stems from a desire for perfection, making it easy to procrastinate posting content.

Another significant barrier is being overwhelmed by the idea of starting from scratch. The idea of going from rarely posting to consistently creating and sharing content can seem daunting, especially when comparing oneself to established influencers with polished and engaging posts. This comparison often leads to imposter syndrome, which gets in the way of progress.

6 Strategies for Overcoming Challenges

1. Shift in Mindset: Embracing a positive outlook is crucial. Instead of focusing on what could go wrong, consider the benefits of sharing insights and experiences. Recognize that every professional has unique experiences that can add value to others. By shifting the focus from fear to opportunity, recruiters can begin to see LinkedIn as a platform for growth and connection.

2. Progress Over Perfection: Understand that done is better than perfect. The goal is to consistently show up and share content, rather than waiting for the perfect post. Regular engagement is key to building a credible personal brand. Over time, this consistent presence will lead to increased visibility and recognition within your network.

3. Engage with Your Network: Start by joining conversations and commenting on others’ posts. This not only builds confidence but also increases visibility within your network. Engaging with peers can lead to meaningful interactions and connections, fostering a sense of community and support.

4. Target Audience Focus: Ensure that your content is relevant to your target audience. Regularly assess your connections and remove those that do not align with your professional goals. This ensures that your content reaches the right people and receives the attention it deserves. Tailoring your content to the interests and needs of your audience will enhance its impact and effectiveness.

5. Leverage Community Support: Utilize the support of colleagues and peers. Before posting, seek feedback to alleviate apprehensions. Encourage colleagues to engage with your posts to foster a supportive community environment. This collaborative approach not only enhances the quality of your content but also strengthens professional relationships.

6. Consistency is Key: Like any long-term endeavor, building a personal brand requires consistent effort. Regular posting and engagement will gradually yield results, much like a fitness journey. By committing to a routine of content creation and interaction, individuals can steadily build their brand and expand their reach.

The Role of Leadership

Recruitment leaders play a crucial role in encouraging personal branding within their teams. By supporting and engaging with team members’ content, leaders can significantly boost morale and participation. This collective effort not only benefits individuals but also amplifies the company’s brand. Encouraging a culture of sharing and collaboration can lead to a more dynamic and engaged workforce.

Building a personal brand on LinkedIn is a journey that requires overcoming initial fears and embracing a mindset of growth and engagement. By focusing on progress, leveraging community support, and maintaining consistency, recruiters can effectively enhance their personal brand, generate more business, and achieve success in 2025. As the market evolves, those who invest in their personal brand will be well-positioned to capitalize on emerging opportunities. The journey may be challenging, but the rewards of a strong personal brand are well worth the effort.

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The Shifting H-1B Policy Landscape https://techservealliance.org/five-hidden-risks-in-the-tech-industry-policy/ Tue, 18 Mar 2025 06:29:15 +0000 https://techservealliance.org/?p=68053 A shift in political tides often brings with it changes in the way we do business. Changes in immigration policy have a significant impact on the staffing and recruiting industry, […]

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A shift in political tides often brings with it changes in the way we do business. Changes in immigration policy have a significant impact on the staffing and recruiting industry, particularly given the ongoing shortage of qualified candidates in many fields. With H-1B visa policies under discussion and potential changes on the horizon, it’s crucial to understand how these shifts could affect your business.

Bracing for change

Michael Hammond, Attorney with Corporate Immigration Partners, is aware of the concerns surrounding the H-1B program, especially in light of policy changes over recent years. Some of these changes—such as guidance on the employer-employee relationship—trace back to the Neufeld Memorandum of January 2010. More recent adjustments, including increased prevailing wages and the removal of the deference rule for visa extensions, have contributed to higher denial rates and greater uncertainty for employers. 

Despite these challenges, Hammond remains cautiously optimistic. There is potential for new immigration legislation to be tied to border security measures, though its impact on the industry remains uncertain. Additionally, several influential figures in the technology sector have expressed strong support for high-skilled immigration, which may shape future policy decisions. Given these dynamics, there is a possibility that the H-1B program will remain largely unchanged in the coming years. 

The H-1B Modernization Rule

This rule came into effect on January 17, after a lengthy period of consideration. “It was proposed initially in October 2023, and went through the complete notice and comment period,” Hammond says. “It clarifies a lot of existing policies, and puts them in a regulatory format.”

Staffing company leaders should be aware of the key changes in this rule. These changes are in the following areas:

    • Definition of employer
      • Formerly, the definition was that an employer ‘controlled the work of an employee’. Now it only requires that the company has bona fide work for that person. Remote and offsite work – where it could be argued that there wasn’t control of the work – are now included.
    • Definition of specialty occupation
      • This is now only available for people with a bachelor’s degree that is directly related to the job, and only when the job requires it. Interestingly, the rule specifically references third-party requirements, distinguishing between staff augmentation and solutions work.
    • Cap Gap
      • This extension relates to the gap between the end of F-1 OPT or STEM OPT (where the OPT card expires in May) and the start of H-1B status (which doesn’t come into effect until October 1). The rule extends the Cap Gap beyond October 1, provided that the case is still pending.
    • Amended petition
      • It was always the case that employers had to file an amended petition when there was a material change in the employee’s job, including a change in work location that is outside commuting distance. Under the new rule, the employer must file before the move. If this isn’t done in time, the employee must stop working until the application is approved.
    • Deference policy
      • The H-1B deference policy was reinstated in 2021, and is codified in the rule. Under the policy, USCIS defers to prior approval decisions.
    • Itinerary requirement

There is no longer a requirement to provide details as to the exact dates and locations of work for the entire duration of the validity period.

Shrinking talent pool

Although the changes brought about by the H-1B Modernization Rule may be net neutral for businesses in the staffing sector, Hammond warns that other possible future changes to immigration legislation may still have an impact.

In particular, Hammond notes that your firm may have international workers whose classes may be at risk of elimination. These may include employees who aren’t on an H-1B, who qualified for I-9, and who therefore may not be on your radar as a risk factor. These may include:

  • TPS (Temporary Protected Status)
  • Asylum
  • DACA (Deferred Action for Childhood Arrivals)
  • H4 EAD
  • L2
  • CPT (Curricular Practical Training)

If you have employees in this class, it may be especially important to register them in the H-1B lottery. 

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Five hidden risks in the tech industry https://techservealliance.org/five-hidden-risks-in-the-tech-industry/ Mon, 17 Mar 2025 10:50:56 +0000 https://techservealliance.org/?p=67964 By TechServe Business Insurance Program partner, The Hanover Insurance Group Your insurance policy gives you peace of mind and helps to ensure that you can stay in business — even […]

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By TechServe Business Insurance Program partner, The Hanover Insurance Group

Your insurance policy gives you peace of mind and helps to ensure that you can stay in business — even if you are threatened by a lawsuit or experience a natural disaster. Sometimes your policy may not cover you — or provide enough coverage — against certain risks. We have evaluated many tech companies’ insurance programs and found many common hidden risks. Here’s your guide to knowing — and planning for these.

1. Plan for the worst

You can’t predict what will, or won’t happen, in the future. But there’s a good chance something bad could happen. According to recent studies, 60% of U.S. companies are underinsured. That’s a big reason why 60% of companies that experience a catastrophic event never reopen for business.

60% OF SMALL BUSINESSES NEVER RECOVER FROM A CATASTROPHIC EVENT

As a tech company, you have a high exposure because of investments in computer equipment and the associated high cost to re-create or restore lost data. Weather causes more damage than ever — wildfires, floods, earthquakes, and wind damage are all reasons to make sure your business has a disaster plan in place. What can you do to reduce your risk?

  • Create a business continuity plan to help you prepare before a disaster occurs and reopen sooner — it’s too late to plan when a weather event is imminent. The Insurance Institute for Business & Home Safety’s Open for Business site offers many planning templates.
  • Include remote locations, key vendors and suppliers in your business continuity plan. Test your plan by establishing relationships with alternate vendors and suppliers.
  • Since business interruption can occur due to a network or server being down at one of your facilities, or with one of the vendors you rely on, ensure that your insurance policy covers the loss of income due to downtime caused by covered events at dependent properties. Understand that your business income is calculated based on profit for the purposes of business interruption insurance. Start-ups can modify their business interruption coverage with some carriers.
  • Consider your insurance policy an investment in your company’s financial health. Saving a few dollars is not worth the risk of being underinsured. Even if you lose power for a day the financial cost of closing can be significant. Disaster strikes without warning and investing a few extra dollars to properly insure your business will give you the peace of mind that your business can recover if the unexpected occurs.

2. Look for potentially costly gaps in your policy

As a tech company, you’re not interested in becoming an insurance expert, but you should know some basics, particularly about liability coverage. General liability covers bodily injury, property damage and personal injury, while professional liability protects your company against claims that your products or services don’t work as advertised or don’t meet specifications. Companies need to worry about the threat of baseless lawsuits, which could come from litigious end-users or customers. You could still incur significant costs to defend even frivolous lawsuits. In this age of litigation, if something goes wrong with a product for which your company supplied a component or piece of code, you could be sued, even if your software is error-free. One problem for tech companies: general liability policies often exclude claims arising from software or programming. Depending on what you do, this has the potential of exposing you to costly uncovered claims. As with general liability, traditional professional liability policies contain exclusions that could create serious risks for tech companies. Many typical professional liability policies exclude information security breaches, and copyright infringement of computer code, which are common exposures for tech companies. However, policies created specifically for tech companies can close this gap.

33% OF SMALL BUSINESSES HAVE FACED A LAWSUIT IN THE PAST THREE YEARS

What can you do to reduce your risk?

  • Choose an agent who understands the risks, including emerging risks, facing tech companies, and has expertise in building programs for tech companies.
  • Select an insurer with products specifically customized for tech companies. Often, there are special coverages for different tech sectors, such as information technology, electronics manufacturing and telecommunications.
  • Ensure that your general liability policy does not exclude professional services (e.g. bodily injury, property damage, and personal and advertising injury arising from software or programming).
  • Look for a professional liability policy designed for tech that includes coverage for information security, breach of warranties and representation, virus transmission, and copyright infringement of software code.

3. Avoid cyber liability confusion

Cyber incidents are becoming increasingly common: 46% of companies experience a data breach annually. The causes can include viruses/malware, physical theft of laptops or mobile devices, denial of service attacks, insider abuse or negligence.

ONLY 3 IN 10 BUSINESSES HAVE CYBER LIABILITY COVERAGE

Yet, only three in 10 businesses have cyber liability coverage. What would happen if data was stolen or suspected to be lost, stolen, or accidentally released? The picture becomes more complicated when the data breach includes customer data. States require notification if a breach occurs or is suspected to have occurred, which can cost thousands. Cyber liability coverage is not a standard coverage and varies significantly among carriers, so make sure you know what you need, and it’s clear what you’re buying. What can you do to reduce risk? Invest in learning about cyber liability coverage, including data breach coverage. This valuable coverage typically includes:

  • Data breach services, including consulting, fraud alert and identity restoration.
  • Data breach expenses, including cost of notification, forensic analysis and proactive monitoring services.
  • Legal services, public relations, cyber extortion response costs and more.

As a tech company, it’s also important to have third-party liability coverage that can be provided on your errors and omission policy. Coverage features will vary significantly among insurers. But your errors and omissions insurance policy should have broad cyber liability coverage, including protection for:

  • Transmission of a computer virus.
  • Failure to protect a third-party’s data or information, including unauthorized access, use, or theft.
  • Inability of an authorized party to gain access to products and services.
  • Coverage for media and content infringement including software and computer code (extends to coverage typically not provided by CGL).

4. Think of data privacy broadly

Phishers, extreme hacktivists, and other menacing cyber criminals dominate the news when it comes to data breach, and top the list of businesses’ security concerns. In one case, Seattle hackers’ attacks cost 53 small- and medium-sized business $3 million in damages. In reality, external and internal cyber criminals caused only 38% of data breaches, according to The Post Breach Boom by the Ponemon Institute, while 47% were non-malicious — caused by employees or contractors who made a mistake. Errors that lead to breaches can be low-tech: an employee’s laptop is accidentally left in a cafe; someone dumps confidential docs in the trash; a file box of records is left in a worker’s car overnight — and stolen by an opportunist.

47% OF DATA BREACHES WERE CAUSED BY NON-MALICIOUS INSIDERS

What can you do to reduce your risk?

  • Tech companies and security consultants often focus on reducing risk with increased network security. However, training employees about data security is one of the lowest-cost, most effective risk management techniques. Periodically remind workers of policies and best practices.
  • Secure data physically. Make sure to secure laptop and devices containing access to data. Lock file drawers and other places containing hard copies of sensitive data. Shred sensitive documents.
  • Encrypt data on all devices.
  • Ensure that you have data breach coverage for both cyber- and non-cyber incidents.

5. Understand your claim reporting obligations

Not every insurer treats claims the same way. Depending on how your policy is written, you may be required to report a professional liability claim within a 60- to 90-day window, and if you fail to do so, your claim may not be covered. That’s pretty clear. However, where it gets confusing is that insurers may have different definitions of what constitutes a claim. Some may require you to report a threat of a lawsuit, or a heated exchange with a customer, for example, even if that conversation never reaches a manager or executive. The insurer may start the reporting clock ticking based on that conversation, even though it was not fully known to management. What you can do to reduce your risk?

  • Choose an insurer with a clear definition of a claim. Typically, this is limited to the receipt of a written demand for damages. Better yet, receipt of that demand has to reach a senior executive before the reporting clock starts ticking.
  • Implement procedures and policies to ensure that lawsuits or other written demands get escalated to appropriate individuals quickly.

DID YOU KNOW IF YOU MISS THE REPORTING WINDOW YOUR CLAIM MAY NOT BE COVERED?

Let’s start a conversation Nobody knows more about designing coverage for today’s technology companies than your agent and The Hanover team. Contact your Hanover agent today.

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The Rise of a Seller’s Market: Why Companies Are Commanding Premium Prices in Today’s M&A Environment https://techservealliance.org/the-rise-of-a-sellers-market/ Wed, 05 Mar 2025 20:56:59 +0000 https://techservealliance.org/?p=67751 In the current economic environment, staffing companies are increasingly finding organic growth challenging due to factors such as the contraction of vendor lists, difficulty in scaling effective sales teams, opening […]

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In the current economic environment, staffing companies are increasingly finding organic growth challenging due to factors such as the contraction of vendor lists, difficulty in scaling effective sales teams, opening new markets without “boots on the ground” and evolving client demand. This is particularly evident in the IT and Engineering staffing sectors, where traditional growth strategies have become less effective. Consequently, many firms are turning to inorganic growth or mergers and acquisitions (M&A) as the primary path to expand, leading to a surge of buyers in the market. 

Market Dynamics: A Surge in Buyers Amidst Hesitant Sellers 

IT staffing industry performance has been anemic with IT employment declining year-over-year in 2024, according to the Monthly TechServe Alliance IT Staffing Index and Technology Staffing Dashboard.  This follows 2023 where the median firm contracted by 4.6% according to the TechServe Alliance Operating Practices Report.  In response, companies are increasingly seeking growth through acquisitions, intensifying competition among buyers. 

 While there are a large number of potential buyers, many potential sellers have been sitting on the sidelines. The same market conditions hindering organic growth—such as economic uncertainty and flat or declining profitability—have caused many business owners to hesitate putting their companies up for sale.  Many of these sellers are hoping for the return of the historical highs in revenue and earnings we saw in 2021 and 2022. This reluctance to sell among many has led to a supply-demand imbalance: a plethora of active buyers vying for a limited number of available firms. 

Implications for Sellers: Capitalizing on a Favorable Market 

For IT and Engineering staffing firms contemplating a sale, the current market presents a unique opportunity. The strong demand from buyers, coupled with the scarcity of sellers, has created a seller’s market where valuations are elevated for good companies with increasingly favorable deal terms. Companies entering the market now often receive multiple offers, enabling them to negotiate a better sale price and more a favorable deal structure. 

This trend is underscored by the recent sale of IRIS Consulting Corporation (Minnesota) to Georgia-based Javelin Consulting and Staffing, which garnered interest and offers from multiple buyers, through the TechServe Alliance M&A Marketplace Program.   The program also this past month facilitated the sale of a Midwest firm to a New York-based acquirer after the buyer evaluated multiple offers. 

Strategic Considerations for Potential Sellers 

Business owners contemplating a sale should consider the following to maximize their enterprise value and receive favorable deal terms: 

  1. Strong Financial Documentation: Ensure that financial records are thorough and transparent, providing potential buyers with confidence in the firm’s stability and profitability. Financials should follow industry-standard format making it easy for a prospective buyer to glean the financial health of the company. 
  1. Operational Efficiency: Streamline operations to highlight the firm’s capability to maintain profitability, even in the face of challenging market conditions. 
  1. Client Diversification: A diversified client base makes a firm more attractive by reducing dependency and the associated risk with reliance on revenue attributable to only a handful of clients. 
  1. Scalable Processes: Implement processes that can easily scale, appealing to buyers looking to expand the business further adding to the potential synergies of an acquisition. 

Conclusion 

The current landscape of the IT and Engineering staffing firms presents a compelling case for owners considering a sale. The combination of numerous active buyers and a limited number of sellers has created a market favorable to those willing to consider the sale of their business.  In many cases, enhanced multiples can make up for earnings (EBITDA) not being at a firm’s historical peak.  By strategically positioning your firm and capitalizing on an M&A market favorable to sellers, business owners considering an exit have the potential to receive a premium for their company along with favorable deal terms. 

To learn more about today’s M&A market for IT & Engineering staffing firms and explore the valuation of your business, please reach out to John Larson or Steve Norris, consultants with TechServe Alliance’s M&A Marketplace team.

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