How traditional staffing companies can become online staffing firms (without losing the human touch)
TL;DR
Online staffing is growing 18 times faster than traditional models and can increase margins by up to 400%. Yet 46% of firms are aware of the shift but haven't acted. This article lays out a practical path to digital transformation while preserving the human relationships that define great staffing.
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, Candidately, 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.
Key Takeaways
- ✓Online staffing is growing 18x faster than traditional staffing models
- ✓Digital transformation can increase staffing firm margins by up to 400%
- ✓46% of staffing firms are aware of the online shift but have not yet pursued it
- ✓Automation handles repetitive tasks so recruiters can focus on relationship-building
- ✓Investing in the right technology stack is critical, but human touch remains the differentiator
Related Glossary Terms
AI Screening
AI screening in recruitment is automated technology that evaluates job applications at scale by analysing CVs, assessments, or video responses to identify qualified candidates. Machine learning models score applicants against predefined criteria, removing manual CV review for high-volume roles. AI screening tools integrate with ATS platforms to reduce time-to-shortlist.
Interview Scheduling
Interview scheduling is the coordination process of finding a mutually available time between candidates and interviewers, confirming the logistics, and sending calendar invitations. For high-volume roles, manual scheduling is a significant time drain and a common cause of candidate drop-off — research shows that 60% of candidates drop out when scheduling takes more than four days. Automated scheduling tools (Calendly, GoodTime, Prelude) have reduced average scheduling time from four days to under 24 hours for agencies that adopt them.
NLP in Recruitment
Natural language processing (NLP) in recruitment refers to AI techniques that enable systems to understand, interpret, and generate human text — powering capabilities like CV parsing, job description analysis, semantic search, and chatbot-based candidate screening. NLP allows an ATS to understand that 'software developer', 'SWE', and 'software engineer' refer to the same role type, improving search recall compared to exact-match keyword systems. Most modern recruitment AI tools have NLP at their core.
Recruitment Chatbot
A recruitment chatbot is an AI-powered conversational interface that automates candidate interactions — answering application questions, pre-screening candidates through structured dialogue, scheduling interviews, and providing status updates 24/7 without recruiter involvement. Tools like Paradox's Olivia or Phenom's chatbot can reduce time-to-screen from days to minutes on high-volume roles. Chatbots improve candidate experience for applicants who receive immediate responses, while freeing recruiters to focus on higher-value engagement.
Resume Parsing
Resume parsing is the automated extraction of structured data from CVs and resumes — pulling out contact details, work history, education, and skills into searchable database fields. ATS platforms use parsers to convert unstructured documents into standardised candidate profiles without manual data entry. Parsing accuracy directly affects searchability of the ATS database.
Customer Stories
NES Fircroft
How NES Fircroft Modernized Candidate Submissions Across 45 Offices with Candidately
NES Fircroft replaced manual email-based candidate submissions with Candidately across 45 offices and 100+ countries. The result: a streamlined, transparent recruitment process that both consultants and clients adopted within weeks.
BenchmarkIT
How BenchmarkIT Gained Visibility into Client Resume Reviews
BenchmarkIT, a boutique IT consulting firm in Stamford CT, had no way to know if clients even opened their candidate resumes. Candidately gave them real-time tracking and faster feedback loops.
Frequently asked questions
Can traditional staffing firms compete with online staffing platforms?
How does going digital increase staffing firm profit margins?
Will automation replace the human element in staffing?
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