2021 Staffing Tech Use & Satisfaction Survey

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Technology is advancing at a rapid pace, providing innovative new ways to source, engage, select, and hire candidates. Navigating and understanding the technology landscape, however, is a challenge. The American Staffing Association and Talent Tech Labs ran an industry-wide surveyto understand how staffing firms are leveraging talent acquisition technology, and what their satisfaction is with specific tools and vendors.

This infographic highlights the most important strategic findings from that survey. For each technology sub-vertical, we show overall industry adoption, the average satisfaction score across vendors in that category, and the number of unique vendors that were mentioned. We then further break down the data to show the average number of technology tools that staffing firms use (segmented by company size), and go one layer deeper to show what the actual industry "tech stack" looks like today.

We hope this infographic is useful in benchmarking your own firm's use of technology against your peers, and valuable in mapping out your firm's technology roadmap.

How Does Your Tech Stack Up?

Explore building a customized tech stack based on your firm’s size, industry, and tech adoption approach.

Try this analysis tool, free to ASA members.

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Staffing Technology Use & Satisfaction

Staffing Technology Use & Satisfaction


Staffing Technology Use & Satisfaction Breakouts

Staffing Technology Use & Satisfaction: Online Job AdvertisingExplore Online Job Advertising in Sourcing »


Staffing Technology Use & Satisfaction: Social Search & Social Networks

Explore Social Search and Social Networks in Sourcing »


Staffing Technology Use & Satisfaction: Referral Tools

Explore Referral Tools in Sourcing »


Staffing Technology Use & Satisfaction: Recruiter Marketplaces

Explore Recruiter Marketplaces in Sourcing »


Explore Online Job Advertising in Engage »


Staffing Technology Use & Satisfaction: Background Checks & References

Explore Background Checks & References in Select »


Explore Assessments in Select »


Staffing Technology Use & Satisfaction: Video Interviewing

Explore Video Interviewing in Select »


Staffing Technology Use & Satisfaction: Matching Technology

Explore Matching Technology in Select »


Staffing Technology Use & Satisfaction: Applicant Tracking

Explore Applicant Tracking in Hire »


Staffing Technology Use & Satisfaction: Analytics & Data, & Labor Market Intelligence

Explore Analytics & Data and Labor Market Intelligence in Hire »


Explore Deployment Systems in Hire »


Explore Robotic Process Automation in Hire »


How Many Technology Vendors do Staffing Companies Leverage?

The table below shows how many tools staffing companies use. We highlight the “middle range”, which excludes outliers (i.e. the quarter of staffing companies that use very few tools and the quarter of firms that use many more tools than average). Generally, the number of technology tools that a staffing firm uses grows in proportion to its total revenue.

In short, a surprising portion of the industry does not even have a “table stakes” tech stack, and is running their business manually or via spreadsheets. As these companies look to scale their business and standardize their processes, implementing the right technology will be key to success.


Staffing Tech Stacks

In the above graphic, we illustrate what the “average” tech stack looks like for staffing firms of different sizes. This visualization will enable you to directly benchmark your current tech stack versus what the industry as a whole is doing.

The bottom portion of the chart above shows the number of tools used by staffing firms at the 25th to 75th percentiles (i.e. the “middle range”), while the chart here essentially shows what the tech stack would look like if all staffing firms were a single company at each revenue threshold.

The small company tech stack consists of an ATS, Background and Reference Checks, and a handful of Job Boards for sourcing. Some smaller firms are leveraging Candidate Communication technology to enable texting or automated recruitment marketing, and some leverage assessments technology. Many use Social Search tech, primarily focused on importing candidate records from social media.

As companies grow to $50 million+ in revenue, Candidate Communication becomes standard, as does Assessments and Social Search. Companies at this scale have the volume to warrant an investment in systems automation via RPA, the majority have a Video Interviewing solution in place, and some invest in Matching technology as well.

The largest firms are the heaviest users of tech across the board. Large firms often have multiple brands, and so typically have multiple Applicant Tracking Systems (specialized for each business unit). They use BI and Analytics tools to make strategic workforce decisions using internal and external data. These firms tend to have MSP offerings, and so often leverage VMS on behalf of their clients. The majority have a Matching solution in place, and tend to be heavier users of Social Search technology, primarily as a way to source passive candidates (an alternative sourcing channel to job boards).


Putting it Together

Many smaller firms find themselves in a “David vs. Goliath” situation, with a need to differentiate their offerings versus larger and better capitalized competitors. In a crowded market, some firms have found the use of technology a way to “punch above their weight”. We encourage readers to explore how staffing technology use evolves as companies grow, and look for areas where strategic investment in tech can have an outsized impact.

For all staffing firms, there’s never been more opportunity or solutions available to industry leaders to build the staffing firm of the future, and we hope this infographic proves useful as you navigate your firm’s technology journey.

 

How Does Your Tech Stack Up?

Explore building a customized tech stack based on your firm’s size, industry, and tech adoption approach. Try this analysis tool, free to ASA members.

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ASA Workforce MonitorMore than three-quarters of employed U.S. adults (79%) are satisfied with their employers’ pandemic-related return-to-work plans. Download the infographic »

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