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If you’re exploring innovative ways to grow your revenue as a staffing agency with AI-driven hiring, you’ve come to the right place!
Staffing Agencies Today and Their Challenges
Tight talent pools, inefficient processes, and non-centralized systems are just a few of the barriers staffing agencies face as they work across different industries.
Something that is also helpful to acknowledge are the types of roles workers are actually being placed in. According to the American Staffing Association, staffing employees are spread across different sectors like this:
- 36% work in industrial roles such as manufacturing and construction.
- 24% are in office and clerical jobs, managing administrative tasks.
- 21% hold professional and managerial roles, overseeing various operations.
- 11% are in specialized fields like engineering, IT, and scientific roles.
- 8% work in healthcare positions, from nursing to medical support.
As you can see, there is a lot of diversity in placements and that comes with its own handful of challenges. In order to meet the needs of each sector successfully, they each require tailored and thoughtful procedures.
- When making industrial placements, for example, they generally need to be filled a lot faster and must also adhere to strict safety standards.
- Office roles, on the other hand, require an assessment of soft skills and the technical abilities of a candidate.
- More professional and managerial roles have a need for thorough background checks and a strong cultural fit.
- Fields that niche or specialized, like IT and engineering, call for deep technical screenings to find that advanced expertise.
- Finally, healthcare staffing requires very careful attention to proper credentialing and navigating the detailed aspects of scheduling.
With every vacancy you fill, you create a new source of income. You’re here, because you among many, want to do more of just that. The first step toward building more efficient and effective staffing solutions is understanding the varied difficulties involved. Once you’ve grasped them, what follows after is picking the systems or tools that will allow you to work through the biggest hardships holding you back from doing so.
Artificial Intelligence (AI) In Recruitment: What To Look For
One of the biggest factors that makes your agency stand out from competitors is technology. 74% of hiring managers are saying technology is what sets staffing companies apart. Furthermore, they believe that the use of the latest and up to date technology is what makes it all key. Agencies are put at a serious disadvantage when relying on traditional and manual recruiting methods. It’s already a task in itself to switch between systems that are disconnected, it makes things more complicated, and you are more likely to miss critical opportunities. It can also lead to more frustrated candidates, as communication and processes aren’t optimized.
On the candidate side of things, what do they want from these agencies? Whether technology is being used or not, the answer is refreshingly straightforward and remains at the top. Candidates place the greatest value in securing the right job, and quicker placement when partnering with a recruiter at a staffing agency.
Pairing these factors together with suitable technology can support the efficient realization of both goals and maximize revenue potential. With all of this in mind, a powerful AI-driven hiring platform should be one that:
- can scale with your growth
- accelerates operations
- optimizes candidate match accuracy
- handles tasks automatically
- offers real time data
The Importance of Staffing Agency Technology
“Forward-thinking firms are looking at technology to help candidates find the best-fitting roles, help clients get workers on the job faster and win more clients.” Gretchen Keefner, senior VP of global enterprise business at Bullhorn, shared in a press statement.
Above seeing stronger outcomes in those areas, this AI movement couldn’t have happened at a better time. Inflation is rising the cost of living everywhere, a lot of people are looking for ways to make extra money, and getting a second job is becoming more common. As highlighted by the American Staffing Association, 58% of adults are likely to seek a 2nd job to supplement their primary income.
This growing need for extra work also aligns with candidates’ expectations on timely communication and fast placements. 80% of candidates express wanting to be placed in less than 20 days, and 63% of those who have already come across technology (e.g. AI interviewers) in the hiring process received faster responses because of it.
5 Tools: For AI For Staffing Agencies
1. Applicant Tracking Systems (ATS) with AI
leading examples: Bullhorn, Manatal
2. AI-Powered Candidate Sourcing Tools
popular platform: SeekOut
3. Chatbots for Automated Candidate Engagement
top example: Olivia by Paradox
4. AI Recruiters for Video Interviewing and Candidate Evaluation
leading solutions: HeyMilo, HireVue
5. Predictive AI Analytics and Talent Pool Management
key solutions: Visier, Workday
Maximizing Profitability and Best Practices
The staffing and recruiting industry in the United States is vast, with around 26,000 companies spread across the country. Of those, roughly 57% are in the temporary and contract staffing sector. In a market that is this crowded and demanding, just using AI won’t automatically set yourself apart. Concentrate on going into your implementation process strategically and intentionally, so that you can direct the AI to precisely serve your needs. To get real value from AI staffing agency technology, this means that you are:
- consistently checking in on how it’s performing
- making updates when needed
- automate where it makes sense and with humans overseeing critical moments
- keeping the lines open with your team and other stakeholders for continuous feedback
- putting candidate experience at the top
Measuring the Impact of AI for Staffing Agencies on Revenue
Studies have found that firms that were experimenting with AI have a 31% greater chance of seeing revenue gains than those that haven’t begun experimenting.
After recognizing the strong connection between adopting AI for staffing agencies and boosting revenue, firms are now directing their efforts toward a few key areas that can help them stay competitive and achieve long-term success. Below, are some of the most important factors agencies are working on and tracking to reap all the benefits of these resources, and continue to expand deal flow:
- One of the initial areas to begin with is the time to fill positions. The faster a staffing agency can place candidates in open roles, the more opportunities it has to generate revenue. Reducing this improves its bottom line by filling roles more quickly, and at the same time it strengthens client relationships. Clients appreciate the speed and reliability of a staffing agency that can meet their needs swiftly, and the same goes for candidates. As positions get filled faster, the agency can take on more clients and candidates, ultimately driving continued growth.
- Cost per hire is another important metric. The goal is to make every resource count, to see better results without overspending. With operational costs being lower, results are immediate and they contribute into the long run.
- Candidate satisfaction matters a lot. Professionals are more likely to stay engaged and, of course, accept job offers when they feel good about the process. Happier candidates tend to recommend the agency, which brings in more business. They’ll also be more likely to return for opportunities in the future, strengthening and developing a long lasting rapport with your agency.
- Client retention is a big one too and works the same way. Consistently providing great service and meeting needs fast, makes clients want to stay around and often refer you to others in their network.
- Lastly, revenue per placement. With matches that are more accurate, your placements are higher in quality. Better fits bring stronger outcomes for both candidates and clients.
The Best AI-driven Hiring Solution To Raise Revenue: HeyMilo AI
Maximizing revenue with AI for staffing agencies comes from more than just putting bodies in seats in the fastest way possible. Thoughtfully conduct its expertise in areas where it will thrive, and where it perfectly complements your work without disturbing what you already have in place. You’re probably already automating some aspects of your hiring process, but HeyMilo AI’s AI interviewer enhances the areas where your process can be more efficient. When you’re looking to make the best use of your time and resources, HeyMilo AI becomes the pathway that turns all your focused effort into higher revenue generation.
