Since 2016, Staffing Hub has been a go-to source for insights into the staffing industry and staffing trends, and its latest State of Staffing benchmarking report delivers a timely snapshot of an industry in transition. This year, the focus is on transformation, with feedback from hundreds of agency professionals about the state of their businesses, the challenges keeping them up at night, and where they see the industry heading next.
The report puts a spotlight on change, and for good reason. 2025 has been marked by unpredictability. The staffing world isn’t just shifting; it’s being redefined. Wage inflation, shrinking talent pools, economic uncertainty, and the rapid rise of staffing automation and AI-driven recruitment technology are forcing agencies to rethink how they operate and where they find their competitive edge.
Yet amid the challenges, there’s opportunity. The report reveals that fast-growth agencies — those reporting revenue growth of 21% or more in 2024 — are still gaining ground and moving quickly.
So, what sets them apart? This report digs into what fast-growth agencies are doing differently and offers practical takeaways you can use to position your business for stronger, faster growth in workforce management and talent acquisition.
Here are just a few of the key findings.
The majority of agencies expect to grow faster in 2025, with over half of respondents across all industries projecting a growth rate of 11% or more. While 27% of agencies reported a revenue contraction in 2024, an impressive 96% are forecasting some level of growth for 2025, and only 2% expect a decline.
AI adoption has climbed to 61% among staffing agencies, up from 48% in 2024. Most of this adoption centers around two areas: conversational AI, used by 55% of agencies, and resume parsing or database cleanup, adopted by 45%. Increasingly, agencies are leveraging applicant tracking system (ATS) software and recruitment platforms to streamline hiring and improve candidate matching.
Data indicates that investing in staffing software and automation tools may be the right strategy, as fast-growing agencies are 32% more likely to have a mobile app. They are also more likely to have automated compliance processes (57% compared to 37% overall) and talent redeployment strategies (36% versus 23%).
Additionally, about one in three agencies plans to automate tasks such as reference and background checks, reputation management, candidate assessments, and compliance, signaling a clear shift toward staffing automation.
Quality of hire is quickly rising as a key metric for measuring recruitment ROI, now cited by 31% of agencies, surpassing traditional benchmarks like cost-per-hire and time-to-fill. The report highlights this shift as a major differentiator for fast-growth agencies.
Fast-growth agencies are more deliberate about using technology to move away from job boards and build stronger, higher-quality talent communities. Notably, they prioritize AI where it directly drives revenue, especially in candidate qualification (70% vs. 51% overall) and candidate/client matching (60% vs. 51% overall).
And those fast-growth agencies are leaning harder on referral programs to build deeper pools of high-quality, loyal candidates.
Want to learn more? Download the report.
