Part 3: David Folwell, President at Staffing Referrals, on How to Turn Your Agency’s Data into a Sales Weapon

Any staffing agency can walk into a sales call with a pitch and a box of donuts. But in today’s market, that’s not enough. Employers want proof. What if the most powerful thing you could bring through the door was data that shows exactly how your talent stacks up against the competition?

In this episode of Avionté: Digital Edge, host Chris Ryan is joined by David Folwell, President of Staffing Referrals and Founder of Staffing Hub, for a conversation on turning talent data into a competitive sales advantage. Building on past episodes about lifetime talent value and loyalty programs, this episode gets more practical, breaking down how staffing firms can use the data they already have to differentiate their agencies and drive real revenue growth.

This is the third part of our conversation with David Folwell. Be sure to listen to part one and part two.

This is a partial transcript of the full conversation. Listen to the podcast episode for the complete discussion.

Chris Ryan:

Before we talk about sales, David, I understand that Staffing Hub is coming out with its new 2026 survey. Congratulations!

Can you give our listeners any hints as to what might be coming out in the Staffing Hub survey? Are there any big surprises or unusual changes you can talk about?

David Folwell:

Absolutely. The survey will have all of the benchmark data that it always does — you’ll be able to see how you compare. But there are three findings this year that separated the agencies that grew from the ones that shrank.

Number one was operational discipline.  We measured it on a seven-point scale, weekly KPI reviews, weekly sales pipeline, et cetera. And what we found is that those that had the better operational discipline, meaning they were doing more of the activities tied to strict standard operational discipline, were more likely to be growing.

Second, AI depth, not AI presence, was correlated with growth. It was actually AI adopters who were more than twice as likely to be in the growth tier, and the flip side of that is that 56% of agencies using zero AI in processes contracted last year. So, the cost of waiting to adopt AI is actually now measurable.

Chris Ryan:

That’s a huge finding. So, what was the third finding?

David Folwell:

The third finding is — and this is a big one — agencies that are winning are not relying solely on job boards.

They’re actually using a multi-channel sourcing strategy and thinking about it strategically. Across the whole industry, 39% of agencies tell us referrals are their highest-converting source. That’s the number one answer. It has been for years. It pretty much always is. But what was unique is that this year, we saw that only 8% of growth agencies cite job boards as their top-converting source.

And for the flat and slow middle, 36% of those agencies are reporting job boards as their top source. So, what we’re seeing is that the companies that are stalling are being heavily reliant on job boards. The agencies reporting growth are shifting to a multi-channel strategy and thinking about it a little more strategically.

Chris Ryan:

Wow. Those are huge findings, and I’m personally looking forward to going through the survey with a fine-tooth comb, because I know there’s going to be a lot of interesting data in there. So, I guess we should get to the topic at hand and that is sales and revenue generation.

One of the things I wanted to start our discussion with is: everyone is talking about when it comes to sales and staffing, how important it is to build your personal brand as a sales rep, and to manage and grow relationships and networks of relationships.

Everyone is focused on that. There’s a lot of discussion around that and how to train your sales force properly. But in our last conversation, you had noted that the most powerful sales weapon a staffing agency could bring to sales is coming in with the right kind of data. Now, I have to ask, and I’m just slightly skeptical, data sounds a little bit cold for a sales call, you know?

If I’m showing up at an employer’s office, I might bring a box of Boston Creams. Everyone I know loves Boston Creams. But if I don’t pull out Boston Creams, and instead, I pull out a chart, they’re all going to start to yawn. So, I want you to be honest with us. Is it better to bring data or donuts to a sales call with an employer?

And if data is so valuable, why aren’t data nerds selling more staffing?

David Folwell:

We’ll start with the donuts and then bring in the data donuts. I think you’ve got to do both.  The honest answer: it’s hard to come up with this data unless you’re using the right tools and thinking about it the right way.

But at the end of the day, maybe the opening to the conversation isn’t, “Here’s our data, and look at why we’re amazing.” The donuts might get you past the front desk, but data’s going to win the contract, and more importantly, retain the contract. And I think we’re seeing that the evolution of the staffing industry is becoming more mature, more data-driven.

The old approach of, “Well, they work with me because we have such a close relationship,” that works in good times and can maintain a relationship. But when things get hard, and the CFO comes into the room, you need to make sure that you have the metrics that you need, and that you’re able to sustain the pressure that you have on the staffing services you’re delivering.

Chris Ryan:

So, it’s not just data or donuts. It’s donuts and data. You open the conversation with a donut, and you close it with some data is what I’m hearing you say, assuming it’s the right kind. So, as we think about this, every staffing agency carries around some data or insights that they use for selling.

My question is: how do you use data as a sales tool to stand out from other agencies? What is it, in particular, that is going to be most important to employers, and why should they care that you have specific data?

David Folwell:

It’s interesting. One of the things that I think is the historical standard in staffing is to go, “We have this many employees. We’ve been around for this many years.”

This is the “who we are” data. And really, what you need to think about is: what is the data that your customer actually cares about? What they care about are the things that are going to save them time, that are going to help drive a better ROI, that are going to help them get the outcomes they want.

That comes back to the average time on contract. It comes back to the talent source and where you’re getting your people. You can look at the candidates that you have and how many of them are certified or verified, and what data you have to prove that. Looking at your redeploy rates or your average tenure.

A lot of our customers who are winning sales and growing in this tough market are literally sending the koozies. They’re sending the gifts to the customers, and then they’re backing it up and saying, “Not only that, but our employees, when you work with us, they’re going to stay forty percent longer than the person who gets a hire from a job board.”

And I’m partial on this, but I think that, as we move into a world where everybody has access to the same talent on the same job boards, and everybody can use the same AI sourcing tools on those job boards, it’s what are you doing that is unique to your agency, and that is the talent pool that you’ve curated, that you have access to, that they don’t have access to.

We have a lot of customers that are going in and showing, “We had forty percent of our placements from referrals last year, and we have an ambassador network of ten thousand people that we can reach out to for any job. And so, we’re not starting with the job board like the other agencies. We’re starting with a network that we’ve hand-curated.”

And I think that can be a really strong position when you’re having a conversation about why you cost two percent more than the other agency, and it’s a good stance to come in with.

Chris Ryan:

So, it’s really about data that proves that you can deliver superior value and data that proves that you have a better product, namely, better people who are specifically well-aligned with what the employer needs.

David Folwell:

Absolutely.

Chris Ryan:

So, with that in mind, lots of agencies are going to say, “Well, we’ve got great people,” or, “We hire great people.” What do you need to do to ensure that your data is credible?

At the end of the day, people can make claims, but if a salesperson walks in with specific metrics, what is going to be most impressive to an employer? And is this a one-time snapshot, or do you need to have an ongoing analytics program that demonstrates consistent superiority?

David Folwell:

The starting point is having a system of record that you can rely on, like Avionté. Having something in place where you can rely on the consistent, reliable data and having the metrics that you need. The customers that we see winning are building data dashboards for their customers.

One of the people I had on our podcast, WSI, built out dashboards that their customers can see where they found the talent and how long they stayed on contract. And they have that in real time.

And, they’re looking at this as strategic partnerships where they’re like, “Hey, when you work with us, you’re actually getting visibility and transparency into how we’re operating so that we can work like a team.”

And I think that the future of this is not just looking at, “Okay, I found a person. I got them placed, and I’ll talk to you again in three months.” It’s how are we performing, how are we measuring our performance, and how are we aligning with the outcomes that that business and your customer actually need?

So, I think it’s a little bit more of the strategic partnership that you and I have talked about a few different times.

Chris Ryan:

So ultimately, the analytics becomes part of the product. In a sense, you’re building a strategic alliance around how you manage the employer’s workforce, and they have transparency and visibility into what you, the staffing agency, are doing.

The associates at a staffing agency are going to be working to ensure that the client gets the results they’re expecting. So, it sounds to me like the data is part sales tool, but it’s also part of the ongoing product that you would use in order to demonstrate value.

David Folwell:

Absolutely, I jumped into the metrics that I think are pretty reliable for being valuable to your customers when you talk about them and can be a way to stand out and have a unique value proposition.

We’re moving into a consultative sales world. We’re moving into strategic partnerships and figuring out how you’re talking to your client. You understand what the outcomes are they need to have happen. What does success look like for them? And you’re aligning your services to that, and then giving them visibility into how you’re tracking towards that.

That’s the shift we’re seeing happen. And a way to stand out in this market is by doing things that historically staffing agencies haven’t spent a lot of time thinking about.

 Chris Ryan:

Yeah, so to that end, salespeople aren’t data junkies. And, a lot of people are trained around relationships and relationship management, but now we want them to be consultative.

Now we want them to sell with data. How do you, if you’re running a staffing agency today and you’ve got a fine sales team, but you’re trying to convert them to this kind of approach, train salespeople to be comfortable selling with data? And what does that look like?

David Folwell:

Your data is your unique value proposition.  I was actually on a call with Dan Mori earlier this morning. He’s the Founder of the Staffing Sales Summit and Staffing Dashboard, and he walked me through exactly this.

How do you talk about your data in a sales meeting? It’s something he trains on, and it’s something his platform helps deliver as well. I’m just going to read what he said this morning. He said, “When you go into a sales meeting, you have to know what the prospect is thinking, ‘Why should I do business with you? I’ve got 15 other staffing agencies calling me every single day. Why should I pick you?’”

And then you get to say, “Great question. Most agencies in the staffing industry rely primarily on job boards. 75% or more have stated that 80% of their placements come from job boards sourced within 30 days of assignment.

That means they’re doing something for the customer that the customers can do themselves. And we have verifiable data that those placements perform worse, take longer to place, turn over quicker, and are lower quality than someone who is sourced through a talent network. So that isn’t unique to you, and it isn’t valuable to the client.”

And then you present your talent network data in a way that shows them that you are unique. So, I think one of the key ways to get your sales team on board with this is simply to have it be part of your standard sales process — to arm them with the data they need, and to make sure that they know the stories, the talk track, and they understand how this ties into the value that you create.

Chris Ryan:

Got it. So, it’s introducing data in a way that makes the story come to life. And to be able to say, “We are different, and it starts with the way we source.”  And here’s some data that shows this. Now, why is this important to you, employer?

Because better sourcing means better candidates. Better candidates mean better work outcomes. And that just drives much better value for you. So, you don’t have to say blue chip service or any of the other platitudes that we’ve heard so often in the staffing industry.

It’s more about showing you that we can provably do a better job of finding the right people for our customers.

David Folwell:

Absolutely. And even to the point of, if you’re going with another agency that’s using a job board primarily, you are probably going to review 10 to 15 times more resumes and potentially have to interview a handful more people.

When you’re going to your trusted network, the placement rates are so much higher that you can literally tell them you’re going to save time. You’re not going to have to spend as much time talking to people, vetting people, and figuring out who to hire. And when you do find them, they’re going to stay on contract longer.

It’s a way that has an immediate meaningful impact on them and also something that they’re unable to do, which makes it unique in how you provide value to them.

Chris Ryan:

Yeah. I was going to say, you know, it’s funny, when I look at staffing agencies that spend most of their time on job boards, the recruiters are, oftentimes, very harried.

They’re like hamsters on a wheel, constantly just going through names, as opposed to very calmly finding exactly the right person that a customer needs for their particular assignment. So, I do think it’s interesting that this approach actually makes an agency a more fun place to recruit, frankly.

David Folwell:

Yeah. And just to add to that, one of our customers was not only providing dashboards, but they were aligning the hires based on values and fit, which is something that you see in strategic HR hiring. But they were trying to say, “We want to make sure that the people who go there enjoy the work that they actually go to do.”

And if a candidate rejected or quit one of their clients because they were treated poorly or it wasn’t a good fit, they would not send another person there. And we’ve had people take it to the next level by really focusing on — and this is beyond data — the fit, and making sure there’s alignment on both sides, which then allows you to create more value.

It takes a little more time, and I know that can be difficult in the staffing industry, where speed is so incredibly important, but it can help you stand out from everyone else in the market.

Chris Ryan:

Yeah. That makes sense, and what it also says to me is really you’re not just talking about a data-driven sales approach.

You’re talking about a value-driven sales approach that has, as its foundation, solid data. So, that makes a lot of sense.

I am curious. We talked about how the sales process transforms.  A lot of agencies don’t think very much about marketing, or haven’t historically, but I think going forward, marketing will become increasingly important. To what extent does the agency’s marketing then build around this value-driven and data-driven approach? And have you seen examples of this working in real life?

David Folwell:

Absolutely. There was a large light industrial franchise who, in their sales deck, added a slide that was specifically about the talent that they were delivering to that client, and they added the number of ambassadors, their referral placement rate, the time on contract, and all of those things.

I think it was the first week after they put that in their deck, they came back like, “We just got a deal, and we think that was actually part of the reason we won it over the competitor.” And it was such a simple thing. But your product as a staffing agency is the people you’re delivering, and I think agencies sometimes forget why aren’t you shining the light on what makes the talent you’re delivering different compared to the others?

And so, I think there’s an easy way to do that. It’s an angle that I think a lot of the larger agencies are starting to recognize that the future of staffing is going to be about verified, qualified talent, and figuring out ways to make sure that you’re delivering that higher quality talent is going to be critical as things move forward in the industry.

Chris Ryan:

Yeah. So, we started the discussion by briefly discussing data-driven selling. And we concluded, bring your donuts and your data. But beyond that, what I hear you saying is that there’s an aspect to this where you have to have systems in place and operations in place to do this.

So, there are certain things that a staffing agency needs to do that are going to take a few months and a lot of operational discipline, at the very least, to get moving on. And I would guess that a really robust referral program could actually take 12-18 months before it reaches close to its full potential.

And I also hear you saying that you want certain kinds of data or metrics that create very close alignment between your existing customers and your recruiters and operations, to keep things going forward, and then use those examples to win new customers. Is that a fair assessment?

David Folwell:

That’s exactly it. I think it’s alignment of your data to the customer’s needs, and specifically the customer’s outcomes and their goals. So, what are they trying to achieve? What are the challenges they have?  And then how can you solve that uniquely compared to the other agencies that they’re talking to?

And I think it’s easy to say, “We’ll solve it faster, and we’re going to do the same thing as everybody else.” But if you can slow down and think about, “How can we do this better, and how can we create more value for the customer, and help them achieve their goals in a different way?” It’s one of the reasons I think in some verticals, I guess it’s been happening for a while in accounting and finance and IT, we’re starting to see Statement of Work.

Staffing agencies are starting to pitch Statements of Work that are outcome-based project work, and I think that’s going to become more common as well. And ultimately it comes down to how you help the customer solve the challenge they have in a way that others cannot, and how can you prove that?

And that’s where the data comes into all of this.

Chris Ryan:

So really, the data isn’t just about helping to grow your W2 staffing. It may also help you move into business adjacent services, which makes a lot of sense based on the direction that staffing is moving today. So, any final words of wisdom for us, David?

If you were counseling an agency owner or an agency executive about how to start putting some of these programs in place, where would you start?

David Folwell:

In terms of a starting point, I think it’s just worth noting that the world is changing faster than it ever has before.

Dig into how are you operating today to get a baseline. Look at your channel source mix. Start measuring your redeployment rates. I don’t remember the exact number from the State of Staffing Report, but the lack of people who measure their redeployment rate is astronomical.

Same with the net promoter score and your reputation. So, start getting a baseline of what your company is delivering today. How does that align with the data that your customers need?  Go talk to your customers. Go one by one to your top customers and ask them, “What data would help us serve you better?

What metrics would be valuable for you to know that we’re performing? And start aligning your metrics with your customers so you can create the value you need.  

It’s always going to be a relationship world, but we are also moving into a world where technology and AI are going to make it hard for the donut-only salesperson to be able to close the deal.

Guest

David Folwell
President at Staffing Referrals

David Folwell is a staffing industry innovator who has spent his career helping recruiting agencies grow through the power of referral networks and partner ecosystems. As the founder of Staffing Hub, David has built a community for staffing professionals. He brings a relentless drive to connect staffing firms with the tools and relationships they need to scale.

Host

Christopher Ryan
Chief Strategy & Marketing Officer at Avionté

Christopher Ryan leads the Strategy and Marketing functions for Avionté. He brings more than three decades of consulting, thought leadership, and corporate experience in Human Capital Management.

About Avionté Digital Edge

Modern technology has revolutionized the way we live, work, and play. It’s also what’s fueling the gig economy which has dramatically changed employment practices. So, what does that mean for staffing and contingent work? In our Avionté Digital Edge podcast series, we will speak directly with industry experts to explore topics and trends related to the digital transformation of staffing and temporary employment in the US workforce.

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