In order to stay competitive, staffing agencies need to be able to maximize their fill rate or reduce the amount of time it takes to find the right hire for an open position. However, most agencies are not adopting the solutions they need to do so. Recent research shows that 67% of hiring managers at companies believe it is very or extremely important for their staffing firms to use up-to-date technology — but only 32% of staffing industry leaders plan to invest in new technology in the next year.
If your fill rate is stagnating, something needs to change. However, there are so many recruiting tech products that promise the world, and it can be hard to understand which ones are worthwhile.
Based on my years in the staffing industry, here’s what I’ve learned about increasing your fill rate — and which technologies can help you achieve this.
The Benefits of Increasing Your Fill Rate
Here’s what a maximized fill rate can do for your agency:
Give you a competitive advantage. According to Staffing Industry Analysts, the US staffing market is expected to see a marginal decline of -2% year-on-year growth in 2023, and the projected prospects for structural growth are not optimistic, thanks to drag from inflation. But consistently delivering quality candidates in a timely manner can give a staffing agency a significant advantage over competitors in this tough environment.
Reduce costs. When positions remain unfilled for an extended period, it often requires additional resources and efforts to find suitable candidates. This may involve additional advertising, increased screening and interviewing processes and more time from recruiters. But by filling positions quickly and efficiently, you can reduce these additional costs and allocate resources more effectively.
Increase client retention. Staffing agencies rely on maintaining strong relationships with their clients. A high job fill rate ensures that clients’ workforce needs are consistently met, leading to higher client satisfaction and improved retention rates. Retaining existing clients is also often more cost-effective than acquiring new ones, as it reduces marketing and acquisition costs.
Increase revenue. Whether they’re fee or commission-based, when an agency successfully fills more job positions, that generates more revenue — it’s simple math. Of course, it’s important to note that the financial benefits of an increased job fill rate may vary depending on factors such as the staffing company’s size, market conditions, specialization and overall efficiency in the recruitment process.
You may read this and think, “This is all well and good, but what are the actual solutions I can adopt to help my recruiters boost our fill rate?”
Based on my experience, the one solution I can recommend above all for increasing your fill rate is integrating an AI-powered talent marketplace into your operations.
What Talent Marketplaces Do for Staffing Agencies
The No. 1 thing talent marketplaces can do is exponentially increase your reach and handle the repetitive tasks of sourcing for you 24/7, giving your human recruiters the bandwidth to take on the more detailed relationship-building and screening you hired them to do.
Talent marketplaces are available 24/7, often using AI to match your openings with job seekers around the clock as they work and live. They streamline the hiring process through intuitive interfaces, automated screening and efficient communication channels. These platforms eliminate administrative bottlenecks, enabling agencies to focus on building relationships and providing personalized services to their clients. Unlike with job boards or a VMS, staffing agencies do not need to go back to square one when trying to unearth talent with consent to submit.
Importantly, talent marketplaces offer access to a diverse pool of candidates, including passive job seekers who may not actively apply through traditional methods. This widened reach does wonders for your fill rate. As an example, clients using the talent marketplace operated by my current employer, SkillGigs, have reduced their average fill time from four months to just a few weeks.
Technology is here that can help you maximize your fill rate and reap those benefits for your agency. Stay ahead of the curve by adopting technologies like AI-powered talent marketplaces and other tools that streamline your recruiters’ workload, allowing them to focus on building client relationships and doing the advanced screening that leads to a successful placement.