How Digital Transformation is Changing the Staffing Industry: Benefits & Challenges

The world has changed drastically in the past decade, and the staffing industry has certainly felt the effects. With digital transformation playing a leading role, staffing companies are now able to provide a wide range of services, from recruiting and onboarding to data analysis and more. This new reality offers a number of benefits, from improved efficiency to better access to talent, but it also brings its own set of challenges. In this article, we’ll take a closer look at how digital transformation is changing the staffing industry and the impact it’s having on businesses, both positive and negative. We’ll explore the various benefits, such as improved speed, cost savings, and access to data, as well as the challenges posed by this rapidly changing landscape, such as the need for new skills and the risk of cyber threats. With the right strategies and tools in place, staffing companies can leverage digital transformation to create a more efficient, secure, and cost-effective workforce.

What is digital transformation?

Digital transformation is the process of shifting from a focus on transactional operations to building transformative experiences for customers. In other words, it’s about more than simply transitioning to new technologies; it’s about using those technologies to create a better customer experience. Organizations that are succeeding in digital transformation are using their data to create personalized customer experiences, and their leaders are focusing on innovation. A successful digital transformation will create positive customer experiences, create competitive advantage, drive revenue growth, and enhance reputation.

Benefits of digital transformation for the staffing industry

There are many benefits to be gained from a digital transformation, such as improved speed, cost savings, and access to data.

  • Improved speed – One of the most obvious benefits is the increase in speed when working with digital transformation. With the automation of manual tasks, the ability to scale operations, and the ability to connect with customers on the go, it is possible to complete many tasks much more quickly.
  • Cost savings – Another significant benefit is cost savings. By adopting new technologies and processes, it is possible to reduce costs across the board.
  • Access to data – Access to data is another major benefit, allowing for more effective decision-making and analysis.
  • Improved quality – Quality is another benefit that is often overlooked. By increasing efficiency and reducing waste, it is possible to improve quality across the board.
  • Better customer experience – With all of these benefits, it is no surprise that customers will have a better experience as well.
  • Better employee experience – With a better customer experience comes better employee experience, which can also help with recruitment, feed into improved retention rates, and lead to better satisfaction rates.

Challenges posed by digital transformation for the staffing industry

While digital transformation brings many benefits, there are also some challenges that must be considered. These include the need for new skills, the risk of cyber threats, and changes to the industry’s business model.

  • Need for new skills – As business models, products, and technology change, it is normal to need new skills. In the case of digital transformation, it may be necessary to hire people with new skills, such as data scientists or machine learning specialists.
  • Risk of cyber threats – With increased connectivity comes increased risk, and in this case, the risk of cyber threats is real. It is important to have a cybersecurity strategy in place to address the risk of cyber threats, including the implementation of security tools, such as AI-based anomaly detection systems.
  • Changes to the business model – Finally, changes to the business model may be necessary to accommodate the changes brought on by digital transformation. This may include working with new partners, finding new customers, or changing pricing models.

Impact of digital transformation on the recruitment process

One area that will see significant changes is the recruitment process. With a greater focus on technology, data, and automation, it is possible to have a fully automated recruitment process. With advances in AI, machine learning, and more, recruiters will be able to use data to make more informed hiring decisions, from evaluating candidates to conducting background checks. This will allow for a more efficient process that can be completed in a shorter amount of time. There will likely be changes in how candidates are screened and assessed, including the use of automated tools and assessments, as well as changes in how hiring managers are involved in the process. In many cases, it is expected that hiring managers should have access to candidates’ data, including scoring, as well as communication tools.

Impact of digital transformation on employee onboarding

Another area where digital transformation will have a significant impact is employee onboarding. With the use of a wide range of tools, such as video-based training, it is possible to provide employees with the information they need to get started much more quickly. In addition, the use of artificial intelligence can allow for more personalized onboarding, as well as feedback and coaching throughout the onboarding process. There are also changes that can be seen in the types of tools used during onboarding. Instead of physical tools, such as binders and books, employees may be given access to digital tools, including virtual books and online tools. Some of the more advanced tools may include virtual assistants, which can help employees get set up and access information without needing to ask a human for help.

Improved access to data with digital transformation

Another benefit of digital transformation is increased access to data. With IoT devices able to collect data, it is possible to collect more data than ever before and in real-time. This makes it possible to make more informed decisions, identify potential issues, and improve employee satisfaction. It also makes it easier to share data across departments, making it possible to create more efficient workflows and better customer experiences. With more data available, it is possible to create better AI models, including deep learning models that can be applied to a variety of problems. This will allow for better predictive maintenance, routing, and other AI-based decision-making tools.

Strategies for leveraging digital transformation

There are a variety of strategies that can be used to leverage digital transformation. These include investing in new technologies, building better relationships with customers, and rethinking the business model. Invest in new technologies – It is important to invest in new technologies to take advantage of the benefits of digital transformation. Build better relationships with customers – Another strategy is to build better relationships with customers. This can be done with personalized experiences, including the use of AI assistants and virtual advisors, as well as with improved communication and feedback. Re-think the business model – Finally, it is important to re-think the business model to take advantages of the benefits of digital transformation. This may include expanding into new industries, creating new products and services, or working with new partners.


There is no doubt that digital transformation will significantly impact the staffing industry. With better technology, more automation, and more data, companies will be able to run more efficiently. In addition, customers will have an even better experience and be happier with the final product or service. Relying solely on digital transformation is not the best strategy. Instead, companies should use digital transformation as a way to improve existing processes. By improving processes, you can use the benefits of digital transformation to make them more efficient, cost-effective, and productive. With the right tools, it is possible to achieve more with less.


As Newbury’s President, Chris Scowden brings 25 years of recruitment leadership experience and application of leading-edge technology to the Staffing Industry. Before joining Newbury Partners, he led business transformation and division turnarounds at AMN Healthcare and TrueBlue. Prior to leading some of the largest process and technology transformations in the Staffing Industry, Chris was the Global Delivery Leader for IBM/Kenexa RPO. He has worked closely with Bullhorn and several of Bullhorn’s acquired companies as an enterprise customer over the years. We invite you to learn more about Chris.

To receive future blog posts and content, follow us on LinkedIn.

Skip to content