The future of recruitment agencies

Aishwarya Sinha Ray
min read
The future of recruitment agencies

The global outlook on hiring has transformed a lot over the years. For a long time recruitment agencies have been the norm, especially in Europe and the UK. There have been efforts to hire people through word of mouth, recruitment agencies, onsite hiring, walk-in interviews and the latest addition to this mix is automated hiring. All these methods have worked in some ways and have been ineffective in others. 

The world economic forum suggests that by 2025, more than half of all tasks will have been automated and this will include hiring. This research was especially thorough and for the stature of the organisation that did it, these results are quite rigorous. 

So what does this increase in competition mean for the future of recruiting agencies? Keep reading to find out.

How is automated recruiting helping businesses

The Internet has made the world a smaller place and there is no questioning the usefulness of it. Not only can you have communication across the globe almost instantaneously, but, it has opened new doors for hiring in ways of online job listings and communication forums like LinkedIn. 

Why is there a need for automated hiring?

As humans strive to create more efficient processes for various industrial practices, hiring starts to emerge at the top of the list for decreased efficiency and industrial pain points. This brings in the need for automated hiring. It is working as epoxy to bridge the gaps in hiring that have been created due to people trying to follow different job listings, having an ill-defined job funnel or just lack of competency when it comes to high-skilled hiring.
What technology and well-performed research have enabled firms to do is, define the most efficient hiring procedure and iterate methods on that. For example, a hiring funnel that keeps track of applicant information has created a one spot station for understanding the hiring practices a company follows.

Automated hiring has allowed people to measure their drawbacks by looking at all of their good as well as bad practices at a glance and at the same time permits them to observe points where they can improve the hiring efficiency.

Where do recruitment agencies fit into this?

Recruitment agencies have often acted as middlemen in making the hiring process easier. They do the job of reaching out, preparing candidates for interviews and often times even handling the interviews themselves. It is a lot like outsourcing the task to an organisation you trust, or you should trust anyway. 

What these organisations have done, is take some people who have been involved in the hiring process for some time and make it their task to utilise their contacts and connection to reach out to potential candidates they have in mind. Of course, the internet has had a negative impact on this because reaching out is now usually done with job listing websites like Indeed, Glassdoor, Monster and even social media like LinkedIn. 

So, the million-dollar question still remains, what are recruitment agencies useful for? 

There are two ways to look at this. They had a good foothold when the reach of the internet was limited and had expertise in the jobs that barely changed before the effect of automation. Since then, not only have the careers become more complex, the technical knowledge required to interview people has also significantly risen. This has put the recruitment agencies in a tough position because the careers are constantly changing and it’s hard to keep up.

The other way to look at it is that they have established a connection of super-elite and disconnected employees or high ranking individuals that won’t look for a job over job postings because of their exclusivity. It is nothing short of trying to contact a celebrity. 

Are recruitment agencies at a disadvantage?

Well, not exactly. The idea is that if recruitment agencies decide to adapt to the changing conditions of the market. Technology does not choose sides and automated hiring can even advantage the agencies if they decide to use it. While technology solutions like an applicant tracking system and automated hiring are designed to replicate the duties of recruitment agencies, certain functions of recruitment agencies can be enhanced with the help of automation.

Many people still like to deal with people on a face to face basis and give hiring the human touch. In many places, the local language becomes a barrier if the ATS is not available in the required language or if cultural dealings involve a more human approach. This allows for recruitment agencies to use their creativity as well as a local approach to attract talent and at the same time use automation to make their jobs easier. 

Ways recruitment agencies can use hiring automation

This may sound contradictory but recruitment agencies can use hiring automation for a large portion of their services and benefit from it. Here are some way how:

Reaching out to candidates

Hiring automation is a tiny application of the broader Business process automation. An even smaller slice is automating internet posts. This includes posting on job listing sites like Glassdoor, LinkedIn and Indeed. Once the Job description is fed to the automation platform, it’s just a couple clicks away to post on all integrated platforms. Not only does this save time, but it redirects all entries along with attachments like resumes, directly into the platform used. It brings multiple job listing website benefits to your doorstep and allows a better management methodology.

Hiring funnel that maintains data

As recruitment agencies work with a few hundred employees, and they get job descriptions constantly, keeping track of each employee while trying to rematch them to job descriptions can be a straining task and is usually a repetitive process. Computers were made to perform repetitive processes faster and effectively. A hiring funnel that keeps track of employee data can be reassigned to match job descriptions and people’s profiles easily while saving time to prepare the respondents for interviews and feed in more job descriptions.

Referral management

This may come off as a little unique application of automated recruitment in recruitment agencies. Referring and word of mouth are some of the ways that have really had an impact on hiring more people, especially amongst those where the employees know their referrals would fit well into the culture of the form.

In an attempt to think outside the box (cliched, I know), imagine if as a strategy to collect more resumes as well as the contact information of people looking for a job, the recruitment agencies have a referral program. Even this can be automated. People would just have to come on to the platform and refer their friends, Not only would this help create a database of people looking for a job to compare to the incoming Job descriptions, but, they also provide the opportunity to create a loyalty-based community improving trust and human dependency.

What makes hiring automation so special?

Any kind of technology created in the 21st century has had groups of people, working together, coming from different perspectives and adding value to the technology. It is truly an amalgamation of ideas, creativity and hard work from people of all walks of life. In my opinion, that is exactly what makes it so special. Hiring automation has had inputs from hiring experts, technological gurus, companies that could potentially use this technology and hundreds of peer-reviewed articles. This makes for a formula that is a part of a continuously growing industry that can adapt as quickly as technology forces change.


The solution to growing and developing in a world that is entranced with technology with an ever-growing attachment to marrying humans and technology is to adapt and take advantage of the resources that are at our disposal. Especially in the 21st century where technology becomes more environmentally sustainable and has a stronger grip over the actions of people. (Take the ice bucket challenge for example)

To conclude, I would like to point out that most days the solutions are not one method but a combination of many and it is the duty of our creative minds as humans to use this to our advantage.

We hope you got some great insights from this blog. Its now time to apply it. Get started with peopleHum for free today. No credit card needed.

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