Organizations are facing challenges in the form of new technologies that are helpful in creating opportunities to run businesses profitably by cutting the unnecessary costs and zeroing on what actually provides value. According to the staffing industry experts, when compared with other industries the technology spent in the staffing industry is below average in terms of percentage of revenue and per full time equivalent employee. The global average across industries as per the Gartner’s Study is 4.5% of revenue. Therefore, there exists the need for staffing agencies to focus on technology spending to remain competitive and remain above their competitors.
Staffing firms in this era of technology can update themselves in communication technologies by undertaking the following below mentioned activities.
- Take necessary steps in improving their efficiency and effectiveness through IT consolidation and improved services and infrastructure.
- Achieve better telecommunication bandwidth by using fiber optic infrastructure.
- Use latest mobile applications for easy mobile access for anytime, anywhere connectivity.
- To ensure that social media channels are actively incorporated in the front office services to ensure that various databases are simultaneously searched.
In the current technological scenario, the importance of mobility, data, cloud and security cannot be underestimated as all these four functions are interrelated and does not bring in many benefits if performed individually. For implementing these technological innovations, the staffing firm needs to make large investments. In reality, it has been observed that the Chief Information Officers or CIO’s of the majority of staffing firms have a conventional mindset of a traditional staffing agency where a very conservative view of how technology can drive revenue is taken by emphasizing on continuously minimizing the IT costs. The reason for this may be tough due to competition in the staffing industry where about one percent of the staffing firms make up about fifty percent of the industry revenue.
In the majority of U.S staffing firms, especially the small and midsized ones have problems pertaining to compressed margins. This situation is forcing these firms to divert their investment in other areas resulting in lowering investments in research and development and technology. Nevertheless, things are changing slowly for the better with the advent of cloud technologies that had helped in bringing down the cost of technology infrastructure that is making it easier for smaller staffing firms to access them. Now, staffing agencies realize the fact that not having technology infrastructure and well thought out strategy to enable the required business efficiencies would put these firms at a disadvantage.