More than two-thirds, 68%, of recruitment firms reported an increase in revenue in 2022, according to staffing software provider Bullhorn’s “Global Recruitment Insights and Data 2023 Industry Trends” report. A similar number, 67%, expect to improve performance again in 2023.
The firms with the highest revenue gains were twice as likely to have digitized their data as those with the largest revenue losses and nearly twice as likely to use automation heavily, according to the report.
“This year’s survey highlights a clear relationship between business performance and technology adoption,” said Gretchen Keefner, senior VP of global enterprise business at Bullhorn. “This makes a compelling case for firms to invest more in digital transformation to future-proof their businesses, despite economic challenges and uncertainty in the jobs market.”
While 77% of staffing firms have begun implementing a digital transformation strategy, many are still in the early stages, according to the report. In addition, only 30% said they use self-service technologies such as chatbots to streamline operations and engage candidates, and only 17% heavily leverage automation throughout their business.
However, despite feeling optimistic about their business growth prospects, recruitment firms continue to face client-related challenges. The report noted the most pressing is an increase in job requisitions that are too specialized or demanding, followed by a reduction in overall job requisitions and a lack of communication from clients.
In addition, candidate acquisition remains a challenge; 56% of respondents cite talent shortage as a top challenge in 2023, an increase from last year.