Key takeaways:
- Technology investment separates winners: Fast-growth agencies invest heavily in strategic technology — 62% plan new software purchases vs. 37% overall, with focus on automation and AI for revenue-generating functions.
- Referrals are critical: 86% of fast-growth firms have formal referral programs (vs. 60% of no-growth agencies), with 71% rating referrals as “extremely important” to their business success.
- Strategic AI adoption drives results: Fast-growth agencies are more strategic with AI implementation, prioritizing revenue-generating functions like candidate qualification (70% vs. 51% overall) and focusing on measurable ROI from their technology investments.
While 27% of staffing agencies reported revenue contraction in 2024, according to our latest State of Staffing report, a select group of high performers is thriving. Fast-growth agencies — those achieving 21%+ revenue growth — are implementing three key strategies that separate them from their struggling competitors.
Technology investment is their secret weapon
“One of the biggest opportunities for staffing agencies lies in leveraging technology to enhance service delivery and efficiency.”
Okay, maybe it’s not exactly a secret, but it is their key differentiator — fast-growth agencies are investing heavily in technology. A remarkable 62% plan to purchase new software solutions in the next 12 months, compared to just 37% of all agencies.
“One of the biggest opportunities for staffing agencies lies in leveraging technology to enhance service delivery and efficiency,” noted one survey respondent. Fast-growth firms are particularly drawn to recruiting and marketing automation (46% planning purchases) and AI assistants (35%).
Fast-growth agencies are also automating more processes than their slower-growing counterparts. They’re more likely to have automated compliance processes (57% vs. 37% overall) and talent redeployment (36% vs. 23%). About one-third plan to automate reference checks, background checks, reputation management, assessments, and compliance in 2025.
A referral focus gives them quality over quantity
An impressive 86% of fast-growth agencies have formal referral programs, significantly higher than the 70% industry average and dramatically outpacing the 60% among no-growth agencies.
Perhaps more importantly, 71% of fast-growth agencies rate referrals as “extremely important” to their business — the highest percentage across all growth categories. They’re also 52% more likely to use referral software to automate and optimize these programs.
This focus on referrals makes strategic sense. Quality of hire (31%) has emerged as the top metric for measuring talent source ROI, ahead of traditional measures like cost-per-hire and time-to-fill. Referrals consistently deliver higher-quality candidates with better retention rates.
AI adoption supports their revenue generation
AI adoption has surged across the staffing industry, with 61% of agencies now using AI (up from 48% in 2024). But fast-growth firms are more deliberate about implementation. They prioritize AI for functions that directly impact revenue generation rather than just operational efficiency.
The most notable AI applications among fast-growth firms include candidate qualification (70%) and candidate/client matching (60%) — applications that focus on boosting revenue. In addition, these firms are notably more rigorous about measuring ROI from their technology investments.
Ready to merge into the fast-growth lane?
The data shows a clear path forward: invest strategically in technology, formalize referral programs, and adopt AI with purpose. These aren’t just trends — they’re proven strategies driving real results.
Want the complete playbook? Download the full 2025 State of Staffing report for detailed benchmarks, industry breakdowns, and actionable insights from hundreds of staffing professionals. Get your free copy and discover what else separates the winners from the rest.
