Ask chief executives at successful companies about their operational secret weapons, and chances are nearly all of them will mention the importance of quality people in exceeding customer expectations and moving the firm’s goals forward.
Yet of all the challenges that a business owner faces these days, arguably the most difficult is staffing. Not only has Arkansas stumbled through a period of extremely low unemployment, substantially reducing the labor pool, but finding the right mesh of skills, attitude and philosophical bent is as complicated as it ever was.
Local staffing companies get that, which is why the best of them are busier than ever. Such firms lean on experience, instinct and behavioral science to service their clients, employing various approaches to matching the right person with the right company.
One such firm, Flexion Point in Little Rock, specializes in fractional staffing, a tactic that deploys people with targeted expertise and skills without a long-term commitment. Fractional employees are typically assigned to work on a specific project but can also be retained for spot work over a longer period of time, similar to being on retainer.
“We see a little of both [scenarios],” said Stuart McLendon, CEO. “A good example might be you’re a middle-market company, maybe $150, $200 million in revenue, and you’ve been purchased by private equity. Private equity is doing a roll up of you and two other manufacturing firms that are all complementary. They quickly realize, ‘Hey, we don’t really have anybody who has the bandwidth to integrate all three into one cohesive system, get everybody on the same platform, all of that.’ That’s a good example of where you need someone for six months, nine months to lend additional support to get over the hump.
Stuart McLendon
“With other situations, it may be a small business or a nonprofit or a city or some other entity that’s a stable organization that has a need but knows that it’s not enough for a full-time employee, just some help a couple times a month. Still others are facing a temporary situation, like the [chief financial officer] just left to take another job, and the CEO needs someone in right away to manage things while they move stuff around internally to cover that long term.”
The fractional model borrows from several other staffing trends, most closely mimicking a freelancer or a temporary/seasonal worker. While not new, the approach has gained attention in the post-COVID-19-pandemic era and the rise of the gig economy. Companies such as Flexion not only ensure the capabilities and skill of the workers they deploy; they also act as a consultant to the client business, analyzing current staffing levels and making suggestions that can improve efficiency and even reduce cost.
“Usually within, say, 30 days of working with somebody, we’re going to have a pretty good understanding of what the job really looks like and what [the client company] needs, and we can offer our expert advice on how to staff it in a particular way,” McClendon said.
“Maybe you need a full-time resource. Maybe you need a part-time resource to do 20 percent of what that person was doing before and then a full-time resource which costs less to do the rest. Those are different things that we try to come back to the table with to help our clients understand that right labor mix to support what they need.”
For those looking to go the more traditional staffing route, things are loosening up somewhat in terms of talent available in the market, but it can still be a tall order for companies to find good help.
“[The labor pool] is a great question and one that I probably get asked several times a week,” said Chris Chunn, co-founder of Arkansas Talent Group in Little Rock. “In the state of Arkansas, our main niche is mainly accounting, finance and human resources, and I would say those markets are still pretty tight. It’s way better than it was in 2020 to about 2022, the COVID-19 era, where everything was impossible, but the market’s still tight.
Chris Chunn
“The economy’s great, companies are still expanding and growing and creating new jobs, and we’re seeing a ton of private-equity-backed companies seeking highly qualified and selective new hires. It can still be really challenging to find the perfect talent in accounting and finance and HR right now.”
The current labor picture, according to the fundamental law of supply and demand, has made things a job seeker’s market. Chunn said companies need to be prepared for what it takes to compete for top talent, which is why Arkansas Talent Group spends a good deal of time educating its clients about what constitutes table stakes in the current environment.
“Compensation’s still at the top of that list,” he said. “I also think we’re still in this world where flexibility is at the top of the list, and that means a lot of different things to a lot of different people. [Employers] have pushed back on remote work so much that a lot of people are going back into the office, but I think you have to be careful about how you do that.
“We’ve found the winning ingredient is really hybrid, allowing somebody to have one or two days where they get to work from the house, especially if they’re a trusted person and they’re doing a great job. Companies need to really allow that for their top performers.”
In addition, companies need to approach hiring strategically, setting certain processes in place instead of merely reacting when a position opens up. Chunn also preached the value of retention, saying smart companies are doing everything reasonable to take care of the workers already on board.
“I think people underestimate how long it can take to hire someone, and so CEOs, CFOs and COOs have all got to plan ahead to make sure they are all on the same page and strategizing intentionally with their HR teams,” Chunn said. “I also think one of the biggest takeaways for this year is for companies to work on retention. Replacing an employee can be so much more expensive than just keeping someone, so retention continues to be really vital.”
Brad Hughes, president of The Hughes Agency in North Little Rock, echoed that sentiment, saying companies that think a little more creatively in regard to staffing often have better results attracting the help they need.
Brad Hughes
“Flexibility is the key to finding younger talent right now,” he said. “Sometimes the 8 to 5 just does not work for them, but that does not mean that they can’t bring something to the table. A lot of companies are basically doing things they never used to do. Their philosophy is we know we need somebody, and the only way we can get them in the door is to catch them when they’re in college, so they let them come in over every single [semester] break.
“It used to be that the only places you’d see that is in families, you know? If a couple owned the business, they would bring in their niece and nephew and all their friends during the holidays or over the summer. Now you really are seeing that as a way to attract good talent in general for an organization.”
Hughes said even with the favorable job market, job seekers are still in competition for the best openings. Therefore, he and his team spend as much time educating potential employees about how to build a successful career as they do counseling client companies about building a good work environment.
“We 100 percent try to do that,” he said. “Don’t show up in pajamas. Research the company you’re working at and before you go for an interview, drive by and look at it to see what the environment is like. Once hired, do your best to fit in and be a part of the team.
“I always think about that scene in Bull Durham when Kevin Costner is talking to the rookie pitcher, and he says something like, ‘After you’ve been here for a while, then you can bring in your color.’ That’s what we tell applicants all the time — get the job, understand it, work hard, and then if it’s the place for you, then you can start to show some individuality.”
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