“Platformification” is the adoption of app-based technology in a firm that has transformed the work experience. It has reshaped so many industries in the past few years, it’s no surprise it’s making its place in the staffing industry as well. TimeSaved CEO Rohan Jacob joined Kelli Schutrop from Parqa Digital Marketing Agency for their Fireside Chat alongside Danny Ashraf, Director of Sales at Monster to discuss how the staffing industry is well on its way to a platform-based approach and what that means for the firms that don’t keep up. Here are a few of the key takeaways from their conversation.
The “platformification” of staffing
When app-based technology made its way into the staffing world, the initial goal was to create a tool that could communicate directly between clients and candidates. Then staffing agencies began to leverage the technology to maximize efficiencies, streamline their processes, and improve the experience for their candidates.
Drawing upon the example of Aya Healthcare’s most recent success with their staffing platform, after the world was completely shaken by the pandemic the ultimate goal became to change the recruitment and job search experience altogether. Without increasing the number of recruiters in their firm, they were able to grow astronomically by leveraging platform technology which also improved the candidate experience.
Shifts for staffing agencies and platform players
With the introduction of staffing platform technology, the type of competition that staffing firms are experiencing has evolved. “Staffing firms need to remember they’re not [just] competing against each other, they’re also competing against everyone that has a mobile or a digital type of experience,” Danny Ashraf explains. The age of digital transformation has brought about ease of use and convenience that was never around before. We’d be hard-pressed to find someone without a smartphone these days. Refusing to adapt to the new platformification of staffing means losing out to major competitors who are able to reach candidates where they would rather be.
Not only is it where candidates want to be, but staffing platforms are also proven to be a game-changer for recruiters. As Kelli noted, typically if an agency wanted to grow their revenue 2x, they would likely need twice the number of recruiters or twice the amount of work for the recruiters. This means more emails, calls, data entry, and all the repetitive tasks that efficiencies provided by technology can take care of. So not only do staffing platforms help the recruiter to do more with less, it allows them to focus on what they’re good at – connecting and relationship building.
Where is the industry now with platformification?
There has been a lot of buzz around this type of technology in the last few years, and the general consensus is that we’re past the early adopter phase and are somewhere in the early majority phase of adoption. According to SIA, 37% of staffing agency owners are looking to adopt this technology over the next two years. This means that they are likely in the process of evaluation.
“I think we’re at the point now where there are available options for all shapes and sizes and staffing firms,” expands Danny Ashraf. When the new technology was introduced, it was all about creating new efficiencies for the firms and their employees. Now, agencies are beginning to jump on the platform bandwagon to stop themselves from losing business to their competitors. “Your firm’s differentiator can be your tech.”
Build vs. buy
When choosing how to get a staffing platform, there are three options to do it. You can create your own, acquire a company with a preexisting staffing platform, or find a staffing platform as a service provider. All options will have their pros and cons, but simply put, if cost and time to market are concerns, then buying SPaaS is the solution.
It’s not just about ticking the box on having a staffing app. It’s important to ask what the companies that went out of their comfort zone experienced and the pieces that made them realize that implementing a staffing platform would be the right solution.
Interested in learning more about what to ask about staffing platforms? Read this article or schedule a chat with a member of our team.