Staffing Companies that Adopt AI and Automation are Heading for Growth

According to Bullhorn’s Global Recruitment Insights and Data (GRID) 2024 Industry Trends Report, even the economic challenges looking over the economy couldn’t stop the staffing firms leveraging AI and Automation from witnessing revenue gains.

Amidst a downturn in revenue growth for the first time in three years, 17% of respondents reported a revenue increase of over 10%. Notably, these high-performing firms shared a commitment to digital transformation, focusing on enhancing productivity and efficiency.

AI Experimentation Key to Success

In 2023, 55% of firms globally began experimenting with AI, with those embracing the technology 31% more likely to see revenue growth. High-performing firms demonstrated higher adoption rates of AI tools, particularly for shift scheduling, credentialing, and gathering client requirements.

Advanced Automations Drive Success

Firms witnessing revenue growth were 2.4 times more likely to utilize automation, particularly in client requirement gathering and candidate screening. Automation streamlined processes, with firms reporting “excellent” success in winning new business three times more likely to use self-service tools.

Boosting Top-of-Funnel Activity

High-performing firms accelerated candidate placements by leveraging technology to expedite recruitment processes. Job classification and talent segmentation were enhanced to swiftly match candidates with suitable roles, resulting in placement times of less than 20 days and a 40% improvement in conversion rates.

What to Look Out for in 2024?

Despite economic uncertainties ranking as the top challenge for 2024, staffing firms remain optimistic about revenue growth. Winning new business emerged as the top priority, closely followed by digital transformation and strengthening client relationships. Additionally, competition from online freelance platforms gained prominence as a major challenge, with 40% of respondents highlighting its impact compared to 12% in 2022.

About Bullhorn

With a steadfast commitment spanning 25 years, Bullhorn has been at the forefront of developing cutting-edge cloud-based software tailored for the staffing and recruitment sector. Collaborating with a network of 10,000 global clients, Bullhorn has amassed extensive knowledge in recruitment methodologies and possesses profound domain expertise to facilitate the growth of recruitment firms. Founded and headquartered in Boston, Bullhorn operates with a team of 1,400 individuals across 14 nations, all dedicated to delivering unparalleled customer experiences – a cornerstone of Bullhorn’s mission.

About the GRID Industry Trends Report

The 14th annual GRID Industry Trends Report, compiled by Bullhorn, draws insights from a comprehensive online survey involving over 1,400 professionals in staffing and recruitment worldwide. This survey, conducted in late 2023, encompasses respondents from various sectors across North America, the UK and Ireland, Benelux, DACH, and APAC regions.