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Staffing firms can elevate their service amid technology revolution

The days of résumé stacks and making hundreds of phone calls are over. Companies working with a staffing firm should expect more.
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3 min read

Quick-to-read HR news & insights

From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.

As every Spider-Man movie taught us, “with great power comes great responsibility.” This is increasingly true for staffing firms, who are now empowered by technology to improve the efficiency and effectiveness of their services.

Recruiting and staffing firms can become power users of expanding HR and workplace tech and use it to their advantage, despite the rising perception that technology could render the staffing firm obsolete, as industry analyst Josh Bersin has suggested.

At the company’s earnings call on March 8, Gary Burnison, CEO of staffing firm Korn Ferry, claimed that although the industry is watching costs right now, the company’s growth in the medium- to long-term depended on its tech platform. “And that is a set of IP that is anchored around developing technologies using our developmental library of competencies,” Burnison said.

Tech-enabled hiring. A recent study saw a 30% increase in automation on the “buyer side” for candidate-facing activities, such as interviewing and messaging for clients, and 55% on the “worker side” for payroll, documentation, and benefits.
This is a new era for recruiting and staffing firms. They’re equipped to do more with less, and with that automated help, they have an imperative to be more strategic partners to clients and the job-seekers in their ecosystem. The American Staffing Association groups the technology opportunities under five categories of a firm’s operation: sourcing candidates, engaging them, selecting them, hiring them, and growing the business.

What are they doing? In January, a Netherlands-based staffing firm claimed to be the first company of its kind in the metaverse. While that might be a distant concept for most companies, many forms of recruiting technology and automation are already in practice.

Bullhorn, an applicant tracking and recruiting technology provider, outlines three opportunities for automation built into its offerings: candidate engagement, data entry and tracking calls, and other activity with candidates and clients. AI solutions can also help turn a big list of initial candidates into a short list, though concerns remain about the role of AI’s accuracy and bias.

LinkedIn is one of the many companies offering recruiting tools to staffing firms, citing case studies claiming reduced cost-per-hire, less time searching for candidates, and better sourcing success. The global firm Randstad apparently found success in targeting candidates with “changemaking” characteristics through an advertising campaign on the social media platform.

Add the human touch. While it’s great to have these tasks off the plate, tech should allow staffing firms to have a greater ability to delight clients and candidates now that they’re no longer inundated with administrative work.

Many company’s recruiting and HR goals have expanded to include imperatives for diversity, equity, culture fit, soft skills, and willingness to work in a certain industry, so firms can provide value to their HR clients by aiming to match their increased interest in advancing the practice of hiring.

Quick-to-read HR news & insights

From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.