Last year ushered in a new set of challenges: Staffing companies are rushing to understand the impact of artificial intelligence on their businesses, and costs overall just keep rising. These and other uncertainties are prompting some leaders in the staffing industry to fall into a common trap: leading from a place of fear.

While a healthy amount of fear can motivate us to take action and drive meaningful change, an unhealthy amount does the opposite. Too much fear prevents leaders from making investments in processes or people. It can cloud their judgment, hinder new opportunities and squash innovation.

I get it. I’m not immune to fear-based thinking. But in my experience, that behavior only leaves you worse off when conditions turn around.

Instead, embrace visionary action. Here’s how.

Take risks. It may seem counterintuitive, but taking strategic risks during times of uncertainty can propel your company forward. Playing it safe now will only leave you two steps behind your competition down the road.

Your best opportunity to gain market share is to push forward when others are pulling back. Instead of waiting to launch a new division until the dust settles, launch it now. Invest in that software or platform you know will save your team time and money. Don’t let merger or acquisition discussions stall out because of stakeholder apprehension. While others are waiting for a perfect and safe moment, you’ll emerge from uncertainty and be miles ahead.

Despite last year’s challenges, at ClearEdge we invested in new services, talent, processes and technology. We affirmed our brand identity and purpose. It’s something I’d urge you to do as well. With 42% of purpose-led organizations outperforming their counterparts, focusing on this metric is a smart investment.

Learn from the past. There’s no greater example of innovation during crisis than what happened during the pandemic. Yes, we were fearful about what might happen. But many leaders used that fear instead of getting caught in it.

A McKinsey survey found that while two-thirds of executives believed the pandemic would be the most challenging moment in their career, three-quarters believed it would also create significant new opportunities for growth. And it did. Manufacturers across the globe who pivoted production lines continued to generate revenue and maintained engagement with talent and customers who would be critical when production ramped back up.

McKinsey also found organizations that maintained innovation through the 2009 financial crisis emerged stronger and outperformed the market average by more than 30%. That growth continued over the subsequent three to five years.

For staffing firms, the lesson is to keep your foot on the gas. Don’t be afraid to reimagine tools and even your marketplace. When one path is blocked, it’s time to forge a new one.

Be the coach. I play in an adult ice hockey league, and it’s incredible how many parallels I see between leadership and sports. It’s not my coach’s job to step onto the ice and into the game. We need our coach to call out the plays, train us, cheer us on and then step back.

Amid fear, it’s easy for coaches (leaders) to get caught in the minutia of the business. But that’s not where you belong. The team needs you to set the course and trust them to have the skills and experience to get you there. For your staffing firm, leaders should:

• Provide specific insights and tools for leveraging AI in recruiting and other areas of your business. Create use cases and test them.
• Remember there is an advantage to being a people business. Yes, AI and other technology are useful, but the power of human connection is still a winning play in staffing.
• Identify your strongest advocates and cheerleaders inside the business. Get them on board with your game plan and lean on them to help bolster morale, increase buy-in and energize the team.

Staffing is an incredibly resilient industry that proves time and time again it can emerge from uncertainty stronger than before. But it requires visionary leadership rather than fear-based submission. Embracing innovation, even in the most challenging times, will help position you and your organization for future success.