Staffing firms must prepare for uncertainty amid digital transformation, economic shifts and evolving client expectations, according to SIA’s executive director of global research, John Nurthen, who opened SIA’s Executive Forum Europe 2024 conference with the keynote address, “Navigating the Future of Recruitment: Embracing Change and Innovation.”

Traditional indicators like GDP, which was once a predictor of staffing industry growth„ are no longer as reliable, Nurthen pointed out, saying that the pandemic disrupted these patterns, alongside the ‘Great Resignation’, labour hoarding and increased use of contingent alternatives such as freelancers and talent platforms. 

Nurthen also highlighted how technology has emerged as a double-edged sword. While firms are racing to implement tools that offer cost-efficiency and speed, they also risk eroding personal client relationships.  

The staffing industry also faces competition, not just from other staffing firms but from talent platforms, consulting firms clients themselves who are increasingly adopting direct sourcing and technology-driven recruitment strategies. 

According to Nurthen, staffing firms that strike a balance between digital efficiency and personal connection are better positioned to thrive in the global labour market. The shift toward “one-stop-shop” services, driven by acquisitions of talent acquisition technologies, points to a future where firms can differentiate themselves through integrated offerings. 

“So why would it not be a good strategy for you to expand and sort of become a one-stop shop providing, not just staffing but other sorts of services to your clients?” Nurthen asked the audience at EFE.  

One thing that hasn’t changed is uncertainty, Nurthen said, adding that firms need to “plan for uncertainty” as a number of changes can threaten forecasts. Firms need to balance defensive measures with forward-thinking investments, he added.  

SIA’s Executive Forum Europe 2024 conference continues this week through Thursday.