Key Takeaways:
- Relationships dominate results: Over half of staffing revenue comes from referrals and local community connections, not digital channels
- Job boards remain necessary but undifferentiated: They drive 25% of placements but represent a major cost that every competitor can access equally
- Your website and local presence offer competitive advantages: Direct digital channels and community engagement deliver results while building brand equity
A new analysis of Avionté customer placements in 2025 reveals what talent sources actually generate revenue:
- Referrals lead by a wide margin at 34% of gross profit. Your successfully placed talent is and will continue to be your best source placements.
- Job boards account for 25% of revenue, with Indeed capturing roughly three-quarters of that spend. While boards remain essential sourcing tools, they also represent a significant cost center that offers limited competitive differentiation.
- Local community presence generates 22% through walk-ins, signage, job fairs, and community outreach. Physical locations and face-to-face engagement continue proving their value, with walk-ins alone representing half of this category.
- Direct digital marketing contributes 13% through agency websites, Facebook pages, and Google search. A well-executed digital presence can reduce dependency on third-party job boards while building your brand.
- Emerging tools show promise but currently represent just 4% of placements. Mobile engagement platforms and chatbots demonstrate traction among early adopters, while mass email and text campaigns show minimal impact.
What does this mean for your strategy?
The data suggests three practical considerations for staffing leaders:
- Invest in what differentiates you. Referrals and community relationships (representing 56% of gross profit combined) are advantages your competitors can’t easily replicate. Strengthening referral programs and local presence offers better ROI than competing solely on job board spend.
- Optimize your owned channels. Your website and social presence deliver measurable results while building brand equity. Many agencies can reduce job board dependency by improving their direct digital channels.
- Track sources rigorously. Understanding which channels bring in your highest-value placements and which most effectively redeploy proven talent enables smarter resource allocation. Not all sourcing dollars deliver equal returns.
What about technology?
Staffing agencies succeed when technology makes people more effective at building relationships, not when it attempts to replace those relationships entirely. Tools like mobile platforms and conversational AI are merely there to start conversations faster and engage talent more personally.
At the end of the day, people still prefer working with people they trust and for companies that treat them as individuals. It’s up to staffing firms to make every one of those connections matter.
