As Staffing Industry Analysts wrapped up its research for 2022, Jon Osborne, VP Strategic Research, published the “North America Staffing Company Survey 2022” report, which revealed key insights on a variety of topics, including staffing firm use of staffing/talent platforms and the use of automation in staffing operations. The survey was conducted in the summer of 2022 and findings reflect the opinions of 438 North American staffing firms.

North American staffing firms have increased their app/platform usage in the industry to reach a record participation rate. The percentage of North American staffing firms with a platform currently in place is 16%, up from the plateau experienced in 2017 through 2021, where 10% to 14% of staffing firms had platforms in place. The strongest usage and interest in future app/platform involvement came from healthcare staffing firms, with 23% of healthcare staffing firms reporting a platform currently in place and 33% planning to implement one in the near future. Staffing firms that utilize an app or platform reported a median revenue increase of 20%, with no reported effects on expenses or staffing volume at the median range, and minimal effects on expenses at the 25th and 75th percentile (-10% and +10%, respectively).

Staffing firm participants who were aware of platforms in the industry, but who were not interested in platforms, were asked to share their reasons for lack of interest. Forty percent reported that platforms were not right for their staffing sector/focus and 25% reported that technology cannot replace the personal touch. Other responses, to a lesser degree, included lack of client interest, management focus, no capital investment, lack of candidate interest and staff lacking technological competency.

Many staffing firms have also added automation to their business, and the increase in process automation reached record levels in 2022, both on the worker side and the buyer side, at 55% and 30% respectively. The noteworthy increases in automation on the worker side included payroll, tax documents and benefits, while increases on the buyer side included video interviewing, profiles and résumés and direct communication with talent via messaging systems.

In terms of analysis and background as it relates to the US healthcare staffing market, SIA projected significant growth in the US healthcare staffing market of $55.1 billion for 2022, compared to $46.7 billion in 2021, with potential for upward revisions based on continued temporary staffing demands. Much of that growth is due to healthcare system reliance on temporary staff to fill holes in the workforce that emerged in 2021 either due to pent up demand or backfill roles as a result of clinician burnout, leaves, quits or retirements. In some instances, platform technology created efficiencies and convenience that led to accelerated market expansion. The competitive edge that platforms may provide to staffing firms such as efficiencies, process automations and higher talent satisfaction rates, may result in faster scaling, speed to market, and differentiation.

For an in-depth look at the emergence of staffing platform technology and its impact on the staffing industry, SIA corporate members can view our most recent report on temporary staffing platforms, “Temporary Staffing Platform Update.”