Coming down from record-setting growth in 2021, the staffing industry expects to grow more modestly this year as they navigate economic uncertainties, according to our brand-new 2023 State of Staffing report.
In line with pre-2021 growth rates, one-third (33%) of staffing agency respondents said their firms grew more than 20% last year. And they expect their growth to be similar this year — more than half (56%) anticipate double-digit growth, and 32% predict growth of 21% or more. However, challenges in finding new talent and clients and implementing new technology may complicate things, requiring agencies to pursue alternative lead sources and be more thoughtful about what tools they add to their tech stack.
For our largest State of Staffing report to date, we surveyed more than 400 industry executives, who shared insights about their agency’s top challenges and opportunities. We also asked more than 500 members of the workforce to share their job search plans for the year ahead.
Key findings:
- More than half (52%) of workforce respondents plan to look for a new job in 2023, up from 46% last year, with higher pay being, by far, their top reason for switching.
- Fast-growth agencies were nearly 60% more likely to say that technology gives them a competitive advantage than those from slow-growth companies.
- Compared to slow-growth agencies, fast-growth companies were 13% more likely to use a chatbot, 50% more likely to use automated referral management, and 225% more likely to use a talent management platform.
- Both fast- and slow-growth agencies rated referrals and LinkedIn as their most effective sources for finding new candidates.
- “Relationship-oriented” and “goal-oriented” were the top two attributes of an ideal recruiter.
To see more industry insights to help you better prepare for the year ahead, download the full 2023 State of Staffing report.
