The staffing industry is in the middle of a severe talent shortage. It's getting incredibly difficult to hire experienced candidates and fill important roles. In fact, 74% of employers indicate challenges in hiring the right talent, a problem that has become even more acute as the job market continues to evolve.

Now worth $519.848 billion, the staffing industry has grown a lot in recent years. But growth alone isn’t enough. To stay ahead, firms must find new ways to tackle talent shortages, meet changing candidate expectations, and handle economic uncertainty.

In this post, we will discuss nine staffing firm growth strategies to help you overcome these problems, grow your business, and remain competitive as the market advances.

Understanding the Staffing Industry Landscape

While the staffing industry is growing fast, it's also facing some critical challenges. For example, finding qualified candidates has become significantly harder, especially as businesses across sectors compete for the same pool of talent.

Candidates now prioritize flexibility, career growth, and a sense of purpose over traditional salary-based incentives. The rise of remote and hybrid work models has changed candidate expectations, with 76% of workers now looking for flexible work arrangements rather than traditional in-person jobs.

Despite these challenges, staffing firms remain optimistic, with 76% of CEOs expecting revenue growth in 2025. To thrive, staffing companies need to innovate and evolve, incorporating AI for talent matching, embracing sophisticated CRM systems for client management, and expanding their services to serve new industries.

Key Market Trends Shaping Staffing Firms in 2025

Now let's take a look at some of the key trends that will shape the staffing industry’s trajectory in 2025 and beyond.

1. A special focus on critical skills

Skill-based hiring has been the talk of the town in 2024, but in 2025, it will become a central pillar for recruitment strategies. According to TestGorilla's State of Skills-based Hiring Report 2024, skills-based hiring is now the No.1 recruitment method, with 81% of companies using it and 94% agreeing it's more predictive of on-the-job success than resumes. In 2025, staffing firms will focus less on traditional qualifications—like degrees or long resumes—and more on what candidates can actually do.

This approach is more pragmatic and meets actual talent shortages in the workplace, making it simpler to reach a broader and more diverse talent pool. Market leaders such as Google and IBM have already shown the way to implement this tactic. Google turned to skill-based recruitment to combat labor shortages, and IBM introduced apprenticeship initiatives to hire talent based on skills and not necessarily qualifications.

Why does it matter? McKinsey's own studies indicate that skill-based hiring is five times more likely to predict job performance than the traditional methods of education- and experience-based hiring. 

But it gets better—employees hired based on skills, who do not hold a degree, remain 34% longer than their degree-holding counterparts. This change can turn the process of attracting and retaining top talent for staffing agencies.

2. AI continues to elevate the hiring process

AI-powered tools will optimize everything from candidate sourcing to interview scheduling and even candidate matching. Machine learning algorithms can help identify top candidates faster by analyzing resumes, job descriptions, and historical data to find the best fits. In fact, companies like Chipotle have already adopted AI-driven virtual assistants like Ava Cado, reducing hiring time from 12 days to just four, and increasing application completion rates from 50% to over 85%.

Similarly, AI enhances personalization for both candidates and clients. Chatbots answer questions, suggest job matches, and assist with onboarding, easing recruiters' workload while improving the candidate experience. This leads to faster hiring, higher client satisfaction, and long-term business success.

Predictive analytics will be key for staffing firms to identify hiring trends, forecast talent demand, and assess candidate success potential, helping firms stay competitive. AI-related job postings surged to 16,000 in October 2024, highlighting its growing role across industries like healthcare and management consulting.

3. Employee advocacy boosts talent and client acquisition

Employee advocacy is on the rise, and for good reason. When current employees speak highly of their workplace, it can have a direct impact on attracting both talent and clients. Employees who share their experiences on social media, review platforms, and at industry events can help promote the company’s culture and values, making it easier to attract top talent and build a solid reputation in the market.

This is particularly important for staffing firms. With competition increasing and the job market becoming more candidate-driven, having your employees champion your brand is an invaluable tool. It humanizes the recruiting process and makes your firm more relatable to both candidates and clients. 

In 2025, 19% of organizations reported expanded reach and audience engagement through employee advocacy programs. The same study suggested that companies utilizing employee advocacy have observed a 5% improvement in talent acquisition and retention, highlighting the strategy's impact on attracting and retaining top talent. ​A strong employee advocacy program can also help reduce hiring costs and improve retention, making it an essential part of your growth strategy.

Common Challenges Staffing Firms Face

Staffing firms encounter various challenges, such as attracting and retaining quality candidates, adjusting to remote work, dealing with high recruitment expenses, and keeping pace with technological advancements, all within a competitive marketplace.

Below is a more detailed look at some of the common challenges facing staffing firms:

Talent shortages & skill gaps

The ongoing talent shortage is a top concern, as industries compete for a limited pool of qualified applicants. Highly specialized positions in areas such as IT, healthcare, and engineering are especially hard to fill because existing talent pools don't align with the industry's needs.

To counter this, staffing companies must rethink their hiring approaches, look into the untapped talent pool, and work very closely with clients to align job specifications with existing candidate capabilities.

High turnover rates & retention issues

While hiring for jobs is crucial, retaining talent is no less a problem. High turnover can prove expensive for staffing companies, leading to lost productivity, extra recruitment costs, and strained client relationships.

Retention is a huge problem for companies in sectors that experience tight labor markets or that depend on contract workers.  In the healthcare staffing sector, for example, the turnover rate for top-tier hospitals has reached 14.2%, while those with a turnover rate of 26% and higher are in the bottom 10%.

Low pay, inadequate growth opportunities, and poor corporate culture are all turnover drivers. With an average turnover rate of 41% in 2023, it’s vital for staffing companies to create engaging employee strategies, provide competitive pay and benefits, and establish long-term relationships with candidates.

Rising client expectations

Clients expect staffing firms to not only provide top talent but to do so with speed and precision. This means staffing firms need to have strong networks, technology, and operational systems in place to quickly match the right candidates to the right roles.

Also, clients expect staffing companies to be more accountable for the quality of the candidates and post-hire service. They also want proactive solutions and value-added services such as training programs, retention support, and workforce optimization strategies.

Balancing business seasonality

Staffing firms struggle to balance business seasonality due to fluctuating demand in various industries. For example, retail, hospitality, and agriculture may see hiring surges during peak seasons but slower demand at other times.

This seasonality forces staffing firms to predict surges and maintain a talent pool ready for action. Conversely, when business is slow, firms must manage overhead costs and nurture client relationships to ensure continuity.

9 Essential Strategies to Grow Your Staffing Firm

To grow a staffing agency in 2025, you need to maximize operational effectiveness, adopt advanced tools like ClearlyRated, and improve your client and candidate experiences. 

Here's how.

Leverage technology in the staffing industry for efficient recruiting

Clients want two things: fast hires and cost savings. You can give them both with the right tech and processes. Your tech stack should be a mix of:

• An applicant tracking systems (ATS)
• Using the right ATS
• Automating data entry to free up time for your recruiting team
• Streamlining candidate communication through automation
• Automating interview scheduling and management
• Automating hiring pipeline updates, from job boards to the final stage of the process

You can take care of the first part with a client experience platform for staffing firms like ClearlyRated. It provides you with feedback and insights that let you deliver exactly what your clients expect. The platform connects with top CRMs, ATS, and other data management platforms such as Bullhorn and Salesforce. This lets you keep resumes organized, track applicants, and rate candidates—all in one place.

Second, if you listen to your recruiters, they’ll tell you exactly where time gets wasted. They’ll know which tasks slow them down. Once you identify these challenges, automate them. This allows you to focus on the tasks that really add value to your staffing firm growth strategies.

With ClearlyRated’s custom API, you can cut down the manual work. Instead of uploading contacts manually, you can plug your CRM/ATS directly into ClearlyRated. This means survey contacts are automatically sent to the correct survey, saving you time and hassle. 

It also automates the process, letting you transfer your survey contacts into the system for automatic surveying. You can set contact filters and clean data to eliminate manual work. This keeps your contacts survey-ready and verifies that the reports you get in your dashboard are accurate. It’s one of the best practices for staffing agencies that saves hours and removes human error.

Even better, many staffing agency tools are built to automate tasks like sourcing candidates and onboarding new hires. These tasks are repetitive and don’t need a lot of hands on deck. The more you automate, the more time your team can spend on tasks that require real expertise and attention. You’ll be amazed at how much more you can accomplish.

Use AI & automation for candidate screening

As we mentioned earlier, sorting through hundreds of resumes takes time—too much time. You need a system that filters top candidates instantly. AI and automation cut through the noise, flagging the right talent before a recruiter even looks at a profile.

AI screens resumes, eliminates irrelevant ones, and ranks candidates according to how well they fit the job description. AI does the boring part of hiring, so your team only deals with the best candidates. After AI shortlists, automation takes over. Scheduling interviews, sending follow-up emails, and responding to candidate questions can all be automated.

Implement a CRM & ATS system

An integrated CRM and ATS system are the backbone of an optimized staffing process. A CRM allows you to manage long-term client relationships, track interactions, and analyze sales data. On the other hand, an ATS automates candidate sourcing, resume parsing, interview scheduling, and placement tracking.

Together, CRM and ATS systems connect your candidate and client in one smooth workflow. They help your team stay on top of everything, cut down on errors, and keep processes running like clockwork. Plus, these systems generate valuable data you can use to make better decisions. You'll get a clear view of how candidates are performing, how long they stay in the pipeline, and where you can improve.

ClearlyRated helps connect these systems by enabling you to gather structured feedback from both candidates and clients directly into your CRM. Automatically import survey contacts to save time, get the best satisfaction scores and client feedback at the right time, and track long-term trends with historical data to make informed, strategic improvements.

Enhance candidate experience for better retention

Candidate experience is one of the most important factors for staffing firms. A positive experience can lead to candidates returning for future placements and referring others. 

From the moment a candidate applies to the interview, placement, and post-placement stages, clear communication, a seamless process, and personalized interactions all contribute to better retention and engagement. In fact, 73% of US customers will leave after a single bad experience.

ClearlyRated, for example, offers an easy way to send automated, customizable surveys to candidates at key touchpoints—application, interview, placement, and post-placement. Event-triggered surveys capture immediate feedback at critical moments in the candidate journey, allowing you to identify issues and refine your processes. A personalized, mobile-optimized survey interface makes it easy for candidates to respond, helping you prevent negative experiences from leading to turnover.

Streamline onboarding & communication

If you want to keep your talent around, start with a solid onboarding experience. Studies show that employees who feel engaged are 87% less likely to leave. So, give your new hires a reason to stay engaged right from the beginning.

Assign projects that match their strengths and interests—something that’ll make them excited to jump into. You can also create fun engagement opportunities, like virtual team-building or gamified recognition (think badges or virtual trophies). 

To make sure your onboarding stays on track, regularly ask for feedback through surveys. Use the results to create real action plans that improve the process. When you share what changes you’ve made based on their input, it shows your hires that their voices matter. It builds trust and keeps them connected to the firm.

You can also get a comprehensive performance analysis of top staffing firms with ClearlyRated, and put yourself above the competition. Plus, use your net promoter score (NPS®) and benchmarking data to offer specialized services that show your unique value. 

Offer competitive compensation & benefits

Competitive compensation and well-rounded benefits are key components of staffing firm growth strategies. They also support stronger recruitment strategies for staffing firms by making your firm a more attractive place to work. In fact, 40% of employers believe workers leave their job to find better benefits, Forbes reported.

To stay competitive, analyze industry wage data from trusted sources like the Bureau of Labor Statistics or PayScale. Use this information to ensure your pay rates are competitive. Also, compare what your direct competitors offer using tools like Glassdoor to see where you stand.

Make sure pay parity exists within your organization, ensuring employees in similar roles and with similar experience levels are paid fairly. Think beyond salary—offer benefits like health insurance, retirement plans, paid time off, and performance-based bonuses. 

Still not convinced? Consider these stats from the same Forbes study:

• 68% of employers and 67% of employees rank employer-covered healthcare as the most important benefit.
• Over 80% of employees over 42 are actively seeking jobs that provide employer-covered healthcare.

These benefits not only help attract talent but also increase retention and overall employee satisfaction.

Strengthen employer branding & marketing

Your firm's success depends on your ability to place skilled professionals on the right projects at the right time. When you do this consistently, you add more value to both clients and candidates.

Your employer brand shapes how people perceive your company. Some see it as a great place to work, while others recognize it for specific qualities like a fast-paced environment or industry-leading benefits.

This perception isn’t universal. Your firm may have a strong reputation within specific industries but remain unknown elsewhere. A strong employer brand builds awareness and attracts top talent where it matters most.

Optimize your digital presence

To attract high-quality candidates and clients, you need a digital presence that actively works for you. Hence, you should create a professional, easy-to-navigate website, maintain an active social media strategy, and produce relevant, industry-specific content. 

For example, companies that update their content regularly see a 55% increase in website visitors than those that don’t. According to HubSpot’s State of Inbound Marketing Report, short-form videos, images, and live-streamed videos are among the top-performing content formats delivering high ROI in 2025. 

Staffing firms that use these formats through recruitment insights, employee testimonials, or job market trends can significantly increase brand visibility and candidate engagement. 

ClearlyRated, for example, can enhance your online presence with client and candidate-verified ratings. You can post these testimonials on your website and highlight them in recruitment ads and posts to improve engagement and boost your firm's visibility.

Utilize social media for recruitment

Social media is an increasingly powerful tool for staffing firms to engage both active and passive job seekers. LinkedIn, Facebook, and Twitter help you connect with job seekers. You can post job openings, show what it’s like to work at your company, and share success stories.

A good hiring strategy works like a marketing funnel. At the awareness stage, job ads and social media posts help more people learn about your company. In the consideration stage, targeted emails and job descriptions match candidates with the right roles. To keep them interested, share details about the job, company culture, and career growth.

ClearlyRated’s social sharing feature makes it easy to highlight positive feedback from clients and candidates. You can post testimonials and "Shout Outs" directly on LinkedIn or Facebook, showing your team’s dedication to top-notch service. This feature connects with our survey programs, so you can share approved reviews and build a strong online reputation while attracting top talent.

Expand client relationships & business networks

Strong client relationships go beyond just filling jobs. They create lasting partnerships that bring repeat business and help your company grow over time. But how do you measure and improve those relationships?

With ClearlyRated’s NPS survey tailored for staffing firms, you gain insights into client satisfaction, service quality, and revenue opportunities. The results help you identify areas for improvement, strengthen relationships, and unlock new business potential.

While the direct financial impact of an improved NPS varies by firm size, client revenue, and other factors, the process remains the same across all staffing firms. ClearlyRated’s surveys do more than asking the standard “NPS question” to measure satisfaction. They ask the driver questions to find out which services impact revenue the most.

These insights help staffing firms in three important ways:

• Upsell and cross-sell to satisfied clients to maximize revenue from existing accounts
• Recover at-risk revenue by addressing concerns before they escalate
• Build trust with new clients using real, data-backed proof of service excellence

By focusing on these areas, staffing firms can drive internal efficiency, enhance service quality, and ultimately increase revenue.

Build long-term partnerships

Sustained growth requires consistent performance and adaptability. Clients who feel their feedback is heard and acted upon are more likely to engage in repeat business. ClearlyRated’s continuous NPS tracking helps staffing firms proactively address client needs before issues arise.

In 2023, U.S. staffing clients reported an NPS score of 36%—a five-point increase year over year. This is a big step forward, but the staffing industry still falls behind global NPS leaders like Starbucks and USAA, with scores like 77 and 75, respectively. Staffing firms have a great opportunity to stand out by offering better client experience strategies.

Specialize in high-demand industries

Specialization allows staffing firms to focus their expertise and resources on high-demand sectors, such as healthcare, technology, and finance. By offering niche staffing solutions, you position your firm as a subject-matter expert capable of attracting top talent in these specialized fields.

ClearlyRated helps staffing firms track industry-specific NPS trends, allowing them to align their offerings with what clients in these sectors value most.

Improve internal workforce management

A staffing firm’s success is directly tied to the capabilities, motivation, and efficiency of its recruitment team. Hence, your internal workforce must be upskilled, engaged, and aligned with industry best practices to improve hiring outcomes, reduce turnover, and strengthen your firm’s reputation.

Upskill & train recruitment teams

Continuous learning is non-negotiable in the fast-moving staffing industry. High-impact training strategies for recruitment teams include:

• Data-driven coaching: Analyzing placement success rates and hiring timelines to identify skill gaps and refine hiring strategies
• Technology upskilling: Providing hands-on training in AI-driven ATS, automated sourcing tools, and CRM platforms to improve efficiency
• Behavioral interview training: Teaching recruiters to assess soft skills, cultural fit, and leadership potential beyond standard qualifications
• Specialized industry training: Offering deep dives into sector-specific hiring challenges, such as compliance in healthcare staffing or technical screening in IT recruitment

Firms that integrate training into daily workflows see higher recruiter retention and better placement outcomes.

Promote workplace diversity & inclusion

Diversity, equality, and inclusivity (DEI) in the workforce is key to improving innovation, employee engagement, and client satisfaction. Staffing firms that emphasize diversity and inclusion are better positioned to meet the evolving expectations of both clients and candidates.

Here are some of the key strategies to achieve that:

• Blind resume screening: Using AI-powered tools to remove bias from the hiring process
• Diverse talent sourcing: Expanding outreach efforts to minority-focused job boards, professional networks, and mentorship programs
• Equitable hiring practices: Ensuring structured interviews and standardized evaluation criteria to reduce unconscious bias
• Inclusive leadership training: Educating hiring managers on building diverse teams and fostering an inclusive work environment

Grow Your Staffing Firm with ClearlyRated

Now that you have the strategies to drive new business for your staffing agency, the next step is ensuring you consistently meet client expectations. Tracking client and candidate satisfaction through NPS surveys helps you refine your approach, strengthen relationships, and improve service quality over time.

ClearlyRated simplifies this process by streamlining survey follow-ups, providing actionable insights, and benchmarking your NPS against industry standards. Our Satisfaction Survey Checklist helps you avoid common pitfalls and create an effective feedback strategy from day one.

Want to see how this works in action? Explore ClearlyRated’s NPS and benchmarking tools with a free demo.

FAQs

What are the biggest challenges staffing firms face today?

Staffing firms today face challenges including attracting and retaining talent in a competitive market, adapting to evolving technology and remote work trends, ensuring a positive candidate experience, and navigating economic uncertainty and skills gaps.

How can staffing firms use technology to improve hiring efficiency?

Recruitment companies can leverage ATS, AI-based tools, and CRM systems for automating screening of candidates, simplifying communications, and strengthening recruitment processes in terms of speed, precision, and overall hiring efficiency.

What are the best strategies to enhance candidate experience in staffing?

Improving candidate experience involves clear communication, seamless application processes, personalized feedback, and leveraging tools like ClearlyRated for real-time insights, so candidates feel valued and engaged throughout the recruitment journey.