The report is based on the survey responses of over 2,000 search and staffing recruitment professionals, at the manager level or higher across 35 countries.
Top 4 takeaways
1. Staffing firms expect to grow in 2017.
68% of staffing firms expect the size of their firm to increase in 2017. They intend to hire more recruiters, sourcers, marketers, and coordinators during the course of the next year.
2. The volume of placements will increase
79% of staffing firms will see an increase in the volume of candidates placed in 2017. Despite this, an overwhelming number of recruitment firms say that they still place candidates in 2 months or less.
3. Budget goes to traditional tactics, but branding tops investment wish list.
While nearly 50% of budget goes to traditional sources, if given unlimited funds, staffing firms would prioritize business development, branding and investing in better sourcing tools.
4. Social recruiting, candidate diversity, and screening automation are the trends defining the future of recruiting.
Using social and professional networks to generate new business and recruit more diverse candidates are on top of recruiters' wish list. Another prominent trend is the automation of the screening and hiring process.
Staffing firms' growth projections
Staffing firms are growing
an impressive majority of staffing firms expect to grow in 2017. In fact, only 2% of firms anticipate a decrease in headcount for the coming year, which inspires a lot of confidence in the staffing industry, despite some economic fluctuations. Staffing firms will be on the lookout for recruiters and sourcers.
How do you expect the size of your recruiting firm to change in 2017 vs. 2016?
Key benchmarks and metrics to monitor
The volume of placements will increase again
In line with increasing their own headcount, firms expect the volume of candidates placed to also increase in 2017. Alongside this, 83% of staffing firms said their average time to place is less than two months. This means that in order to maintain their speed of placement, recruiters need to get creative and figure out ways they can automate their workflow and close candidates faster.
IT, engineering, and sales are the highest priority roles to fill
The client demand for IT, engineering and sales talent is so prevalent that recruitment firms have to start thinking more strategically about how to find and recruit these talent pools. Given that engineers are the second hardest role to fill in the world*, relying on data to pinpoint locations where the supply of talent is higher than the demand is a crucial first step. Another successful tactic is targeting each of these functions with highly customized content relevant to them.
Retaining clients and number of placements are the most important metrics to track
When it comes to measuring performance, staffing firms focus on metrics that have a lasting impact on the business. That is why the relationship with their client -- client retention and satisfaction -- are paramount for staffing firms and their ability to be seen as a long-term consultative partner.
1. Client retention year over year
2. The number of candidates placed
3. The satisfaction of the client
Competition for talent and business development are top challenges
Staffing firms face intense competition not only for top candidates but for clients too. One of the most effective ways to differentiate is through a strong firm brand, built on effective and clear messaging. While tight budgets are making it hard to invest in branding, it’s worth considering it as an essential opportunity for growth in 2017.
1. 58%--Competition for talent
2. 38%--Business development
3. 30%--Limited budget
4. 25%--Small recruiting team
5. 20%--Poor communication with hiring managers
Over half of recruitment firms expect their budget to increase
While the majority of firms will enjoy a budget increase, they will have to account for an increase in placements volume and workload. To balance this out and still have money to invest in new opportunities, staffing firms need to consider initiatives and tools which will bring scale to their teams and allow for automation of time-consuming tasks.
Most teams invest their budgets in job postings and recruiting tools
sourcing tools, and business development. Given that their top source of quality hires are social professional networks, this allocation is not a surprise.
Apparently from the conclusions drawn above, staffing agencies play more and more pivotal role in 2017. Talent Spot, a premium recruitment agency, has a high prestige in China，promoting you with the comprehensive and professional HR solutions.