State of Staffing Report Reveals 70% of Staffing Firms Expect Double-Digit Growth in 2021

To drive growth, staffing agencies are accelerating adoption of new technologies and looking beyond job boards for qualified candidates.

The State of Staffing report aims to identify what distinguishes fast-growth agencies from slow-growth ones. For past reports, firms have been categorized as fast- or slow-growth based on the prior year’s revenue. Since 2020 was unusual, this year’s report categorizes firms based on their anticipated growth rates, providing a snapshot of how agencies plan to shift their operations in the year ahead.

While most firms expect double-digit growth this year, 43% expect to grow significantly — by 21% or more. To reach these goals, successful companies are turning to technology. Fast-growth agencies are 1.6x more likely to be early adopters than slow-growth companies, and 2.7x more likely to identify as leaders in the digital transformation.

Other key findings from the 2021 report include:

  • The industry verticals that anticipate the most growth include IT, professional/managerial, healthcare, and industrial.
  • Recruiting automation is becoming an increasingly important tool, and 4 out of 10 fast-growth agencies strongly believe it will transform the industry.
  • Finding qualified candidates continues to be the greatest challenge for both fast- and slow-growth businesses, followed by getting candidates to respond.
  • Referrals were cited as the top lead source, moving ahead of Indeed and LinkedIn for the first time.
  • Consistent with past years, there is a high correlation between a good Net Promoter Score® (NPS) and growth rate.

For a more in-depth look at this year’s survey results, including how fast-growth agencies compare to slow-growth ones, register for the upcoming State of Staffing Industry Growth webinar on July 13 or download the full 2021 State of Staffing report.

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