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COVID-19 Financial Impact On Staffing Firms

COVID-19 Financial Impact On Staffing Firms

Staffing companies of the Affiliated Staffing Group, an industry network group of non-competent staffing companies, recently met on the Covid-19 pandemic. In the midst of the crisis, the 30 member firms recorded declines in weekly company revenues of between 8 and 40 percent. We were among many staffing firms looking at Covid-19 ‘s financial effects.

 

For example, previously announced it would withdraw guidance for the first quarter based on the Covid-19 pandemic. Groupe Crit, a French-based staffing company with operations in the U.S., said in this week’s earnings announcement that Covid-19’s overall impact on operations is still uncertain but business activity fell significantly in June.

 

Community membership varies in scale from an annual turnover of $10 million to $350 million. The workforce divisions served to include light manufacturing, building / technical, and others.

 

In-group lay-offs ranged from none to 33 percent. In some cases, salary cuts were made to the members’ owners, and wages for internal staffing workers were lowered. The declines for those in leadership positions ranged from 33 percent to 10 percent for other internal workers.

 

We’ve focused our efforts on essential employers and have only been down about 8 percent but are anticipating revenue drops of up to 20 percent and unsure at this time when it’s going to bottom out, “wrote Fazio. The healthcare challenge is to get the [personal protective equipment] for employees and to ensure that employees are safe at work.

 

In a separate statement, staffing company Express Jobs Professionals focused on how stay-at-home mandates and potential quarantines have particularly concerned hourly employees.

 

In a quote, David Robb, Marketing Director at the Express office in Grand Rapids, Michigan, said I’ve heard from staff worried that they won’t get paid if they can’t work or are forced to quarantine for a while and can’t find a job to help provide for their families.

 

Efforts are underway to transition some temporary employees to companies that still need workers, such as those that make lifesaving products and materials. And some client companies are trying to hold on to contingent workers even during the downturn, general manager for two Express franchise locations in Fort Worth, Texas, said in a statement.

 

We had some assignments ending early because of lack of work or a planned drop in workload, “said Riggins. Companies just seem to be trying to hang on to current workers but are reluctant to bring in new employees for either practical reasons or potential uncertainty Staffing Firms.