Blending Tech & Touch: How B2B Marketplaces are Reshaping Staffing

Staffing, recruitment, and head-hunting firms are fundamentally B2B marketplaces, yet many are starkly antiquated in their tech usage.

Reflecting on my decade as a head-hunter, the stark lack of technology within the industry was often frustrating. While moonlighting as a start-up founder, I encountered an array of growth hacks and SaaS tools that screamed potential for recruitment. Fast forward, and the industry is edging forward; internal systems are now more adaptable, integrating external APIs, embracing server flexibility, and starting to leverage SaaS products. Yet, many incumbents are still retrofitting new tech onto outdated foundations, which is inherently inefficient.

Here’s where I plant my flag: staffing and agencies must diversify their tech offerings for the sectors they serve. White-collar workers and creatives need different tech than blue-collar workers — though I’m not fond of the term. The former requires a more human touch; one does not make a five-year career decision via a platform alone.

Why Does This Industry Need a B2B Marketplace?

Diving into the crux of the matter, the staffing industry’s landscape is a complex mix of permanent and temporary staffing providers, catering to both white-collar and blue-collar job markets. In the case of blue-collar temporary staffing, the roles are more transactional, and the skill sets are easier to quantify, which isn’t always the case in more subjective fields like management consulting or banking. It’s here that technology, specifically B2B marketplaces, can really shine, enhancing what they do best: boosting efficiency, slashing costs, and providing much-needed liquidity in the industry.

Consider sectors like private nursing, child-care, elderly care, transactional accounting, supply teaching, personal training, construction, transportation, and logistics, or even home-care. These are all critical segments of the labor market that can greatly benefit from the streamlined, efficient solutions offered by a B2B marketplace. This technological approach can replace the need for the more traditional, hands-on human methods commonly used by recruitment firms specialising in these areas.

Now, turning to white-collar and creative sectors, including influencer staffing, the role of B2B marketplaces is still significant but requires a more nuanced approach. Over the years, I’ve observed numerous companies attempting to supplant the traditional human recruiter in these areas, only to fall short. The reason? They tried to do too much, too fast. These sectors still necessitate a human element. For instance, job seekers in professional services searching for permanent roles need more than just a platform; they need a trusted advisor to guide them through the intricacies of their career path. Even with all the necessary information available on a platform, the transaction won’t happen without this human touch.

Take, for example, an experienced banking professional looking for a long-term role. They’re making a pivotal life decision for the next 3–5 years. A simple, three-click digital platform isn’t sufficient; they require human interaction to bridge the gap of asymmetric information. They seek a trusted consultant to guide them, not just a technological interface.

Similarly, in the creative and nascent field of influencers, a similar pattern emerges. Many marketplace solutions have emerged to connect brands with talent, but those that tried to completely bypass the human element failed. This is where Influencer.com stands out. They’ve adopted a hybrid model, where their platform facilitates the discovery of opportunities, but a human team manages the process thereafter. This blend of technology for efficiency and human touch for personalisation is what makes Influencer.com a standout business. It’s a model that others are likely to follow, and I predict that in the next five years, Influencer.com could parallel the success of giants like IMG.

In summary, while B2B marketplaces hold immense potential for transforming the staffing and agency industry, their success lies in understanding and catering to the unique needs of different job markets. For transactional roles, technology can take the lead, but in areas where personal and professional stakes are high, a combination of technology and human insight is indispensable.

The Mechanics of a B2B Marketplace: Benefits to the Industry and Supply Chain

B2B marketplaces signal transformative benefits for staffing and agencies, unifying a disjointed recruitment landscape. They elevate matchmaking, employing algorithms to align candidates with roles, a significant improvement over the error-prone traditional methods. These platforms scale quickly, adjusting to talent demand fluctuations — a boon for industries with variable staffing requirements.

These marketplaces expedite hiring and lower costs by automating routine tasks and eliminating intermediaries, enhancing direct employer-candidate interactions. They also increase industry transparency, establishing clear pricing and terms. Additionally, these platforms democratize market insights and data intelligence, allowing even smaller entities to make informed decisions. They simplify compliance, onboarding, contract management, and payroll, letting agencies and clients focus on their primary business functions.

Predictions for the Industry and B2B Marketplaces Within Them

I foresee B2B marketplaces evolving rather than replacing traditional staffing agencies. In blue-collar temporary staffing, I expect a marked pivot to marketplace use. These platforms will cater to industries prioritizing speed, cost, and scalability, where a personal hiring touch is secondary.

In white-collar and creative staffing, marketplaces will likely adopt a hybrid model, integrating tech efficiency with essential human insight. Managed marketplace platforms will gain prominence, offering personalised support and expertise, especially for permanent roles. As the gig economy balloons, B2B marketplaces will increasingly cater to gig workers and freelancers, providing opportunities once exclusive to full-time employment.

Ultimately, AI and machine learning will enhance marketplace sophistication in candidate-role matching and industry trend forecasting. B2B marketplaces are on track to redefine the staffing and agency landscape, fostering a dynamic, responsive, and fair labor market. The future of work is malleable, interconnected, and tech-powered, with B2B marketplaces at its core — ushering in a revolution in how we work, hire, and collaborate.

Start-ups fuelling innovation within the space:

Contact | Marketplace for hair and makeup artists, photographers and models

Layer | Marketplace for IP rights in gaming

Tempo | Job matching platform

Nina.care | International childcare platform for parents and caregivers (thanks to Alex Reed @ Mountside for showing us Nina)

Talent.io | Marketplace for tech talent

Otta | Job matching platform and job board

Elder | Marketplace for elderly care professionals