November 7, 2022

How traditional staffing companies can become online staffing firms (without losing the human touch)

Jan Jedlinski

Co-Founder & CEO, Candidate.ly

It's no secret that the staffing industry is changing. With the advent of online staffing firms, traditional staffing companies are struggling to keep up. However, there is no need to panic!

There is a way for traditional staffing companies to become online staffing firms without losing the human touch. In this blog post, we will discuss the ways that you can make this transition and still maintain your competitive edge in the recruitment marketplaces.

Why your staffing company needs to adopt digital transformation

The cold fact is that online staffing marketplaces are currently growing 18x faster than traditional staffing companies. Growth is the key to success for any business and, as the online staffing industry continues to grow, it’s important for traditional staffing companies to find ways to adopt this change and keep up with the competition.

While overall revenue for staffing firms increased during the 2020-2021 period, this growth was driven, in the majority, by the largest firms in the market, leaving smaller and mid sized firms to experience a drop in revenue.

With 70% of staffing firms focussing on growth in the next 12 months, it’s evident that these companies are looking for ways to stay ahead of the curve and increase their revenue.

However, only 55% have some sort of online staffing capabilities in place, putting nearly half the market at a disadvantage when trying to compete in an increasingly tight and competitive market.

Why traditional staffing companies will be successful if they transform

Research shows that moving from traditional staffing to online staffing marketplaces has the potential to increase gross margins by as much as 400%.

What’s more, online staffing firms are typically able to operate with 30-40% less staff than traditional companies and can offer their services at a 20-30% lower price.

Despite these clear benefits, 46% of staffing agencies are aware of online staffing opportunities, but are still not planning to pursue them.

What this presents is a situation where those staffing companies who are able to embrace digital transformation will be able to reap the rewards, while those who don’t will likely fall behind.

As revenues fall and costs increase, those staffing companies who have not made the switch to online staffing will find it increasingly difficult to compete.

On the flip side, those staffing companies who have made the switch will be able to offer a more competitive price, better quality candidates, and a quicker turnaround time.

While it may seem daunting to make the switch from traditional to online staffing, it is clear that it is a necessary one if staffing companies want to stay ahead of the curve.

The good news is, making the switch doesn’t have to be difficult.

By following a few simple steps, staffing companies can easily make the transition from traditional to online without losing the human touch that has made them successful.

What staffing companies need to do to become an online staffing firm

While the steps towards increasing a company's online presence will depend on the specific company and its needs, there are some key things that all staffing companies need to do in order to make a successful transition:

Use automation

Automation is key for online staffing firms.

There are a number of ways to automate the staffing process, from using an applicant tracking system (ATS) to automating email communications.

By automating as much of the staffing process as possible, companies can free up time that can be spent on more important tasks, like developing relationships with clients and candidates.

The primary benefit of automation is that it can help to improve the efficiency of the staffing process.

In addition, by automating certain tasks, online staffing firms can improve the quality of their services.

For example, by using an ATS, firms can ensure that all applicants are screened in a consistent manner.

This can help to eliminate bias in the hiring process and ensure that only the most qualified candidates are considered for positions.

Offer a digital-first experience for candidates

How candidates approach recruitment has changed to reflect the way we now live our lives.

The traditional process of paper applications and in-person interviews is no longer the only way to find top talent.

More and more job seekers are using online tools to research companies and apply for jobs.

In order to stay competitive, staffing firms need to offer a digital-first experience for candidates.

This means providing an easy-to-use online application process and being available to answer questions via email, chat, or video.

Offer self-service for clients

Self-service recruitment portals are another way to make your staffing firm more competitive.

By giving clients the ability to post jobs, track candidates, and manage their hiring process online, you can save them time and hassle.

In addition, self-service portals give you the opportunity to upsell your clients on additional services, such as candidate screening or background checks.

Leverage technology to become more productive

What all three of the tips above have in common is the use of technology.

By leveraging technology, you can make your staffing firm more efficient and productive.

For example, Candidate.ly, a client portal for Bullhorn, enables staffing firms to post jobs, manage candidates, and communicate with clients all in one place.

By automating these processes, you free up your staff to focus on more important tasks, such as building relationships with clients and candidates.

Use technology to your advantage and you’ll be well on your way to becoming an online staffing firm.

Get Candidately for your Bullhorn account today

Instant client feedback

Live analytics

No client login required

The Staffing Technology Report

Insights from 100+ staffing managers and leaders.