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Temp Staffing: Challenges & Opportunities for Recruitment Agencies

Written by Cozette Crimp | January 9, 2025 11:32:26 PM Z

Temporary Staffing: the Unsung, Overlooked Recruitment Opportunity

Temporary staffing is on the rise in Australia as businesses seek flexibility to meet fluctuating workforce needs. At the same time, candidates are increasingly drawn to flexible, shift-based work arrangements that suit their changing lifestyles. With immigration set to continue its upward trend in the coming years, visa holders with working restrictions will also be seeking casual work in steady numbers. By diversifying into temp staffing, agencies can tap into new revenue streams, strengthen client relationships, and reduce risk by balancing the ebb and flow of permanent placements with steady shift-based work.

It should come as no surprise that on-hire staffing for front-line industries (e.g. healthcare, manufacturing and childcare) comes with its own set of challenges, from managing high volumes of placements to ensuring adherence to compliance requirements. The good news is that with the right software, these challenges can be effectively managed, allowing your agency to thrive in this space.

Key Challenges of Temporary Staffing for Australia's Front Line

While temporary staffing is great way to expand a perm agency's offerings, it's important to know what makes it unique. 

  • Rapid Shift Filling
    In temp staffing, speed is everything. Last-minute shifts and cancellations are common, and agencies need to fill roles quickly to maintain client satisfaction. Recruiters don't have the luxury of carefully reviewing candidate details to specific jobs. Manual processes simply can’t keep up with the pace and accuracy required so automations are non-negotiable.

  • Compliance Complexity
    Front-line industries like aged care and nursing have unique compliance considerations, including certifications, overtime fatigue management, and high numbers of migrant workers. Keeping track of these compliance checks for a large pool of remote workers without the right tools is a lawsuit waiting to happen.

  • Managing High Volume and Turnover
    Temp staffing involves managing a large and frequently changing pool of candidates. Without automations to keep on top of this administrative nightmare, your business can end up with a wildly inaccurate understanding of your available workforce.

  • Candidate Engagement
    Temporary candidates may only work sporadically and may never meet your team face-to-face, making it harder to keep them engaged using the same approach you use with perm candidates. Agencies need strategies to maintain communication and ensure these casual workers are available and suitable when your team places them into future shifts.

Is it Worth Diversifying into Temporary Staffing? We think so.

Despite the above challenges, diversifying into temporary staffing can be transformative for recruitment agencies. Here’s why:

  • Risk Mitigation & Revenue Growth
    Temp staffing provides flexibility in uncertain economic conditions, reducing reliance on less frequent, large commission payments and allowing agencies to adapt to market changes with a steadier, more predictable revenue stream. While margins per placement are naturally lower than the commission payments on permanent roles, this diversification tactic can create a buffer for the slower periods in your clients' hiring cycles.

  • Building Long-Term Client Relationships
    By catering to both permanent and temporary staffing needs, agencies can position themselves as comprehensive workforce solutions providers, strengthening client loyalty. In order to get the best outcome here, we would recommend taking this diversifying step within your existing recruitment niche. E.g. if you're placing teachers, simply expand into casual relief teaching, rather than jumping into nanny services. This will allow you to organically grow your work within your existing pool of candidates and clients before needing to focus on new business development.

  • Adapting to Changing Candidate Preferences
    More candidates are seeking flexible work options that fit their lifestyles. Offering temp staffing allows agencies to meet these preferences, improving candidate retention and engagement. Candidates who may prefer permanent roles today might switch to temp work tomorrow—and having both options ensures they stay with your agency through the different seasons for their career.

The Role of Software in Overcoming Temp Staffing Challenges

To successfully navigate the complexities of temporary staffing, the right software is essential. Spoiler alert: you can't use the same software for perm and on-hire recruitment. The requirements and features are simply too different. In either direction, it either won't meet the mark or it will be massive overkill. Xeople does offer an integrated solution across our perm ATS, XeopleRecruit, and our on-hire workforce management platform, Entire OnHire. For those interested in a demo, be sure to reach out to our team. Here are a few ways Entire OnHire addresses the key challenges of temp staffing outlined above:

  • Automated Shift Scheduling and Matching
    Entire OnHire’s auto-matching tools enable rapid and accurate shift filling, ensuring that roles are filled efficiently, even at the last minute. Location, availability and compliance checks are all instantly considered, helping your allocators make the best staff selection.

  • Compliance Management Tools
    Automated compliance tracking keeps your agency audit-ready by managing certifications, ATO requirements, visa expiries, and much more, thereby reducing risk and administrative burdens.

  • Real-Time Updates via Mobile Apps
    With the EOH Workforce App, candidates can receive real-time updates, accept shifts, and manage their schedules on the go. Mobile engagement of workforces in these front-line industries is crucial as they're rarely sitting at a desk. Geo-location built into our app also allows for greater transparency, which is uniquely important for remote shift-based work.

  • Scalable Solutions for High Volume
    Whether you’re managing a small pool of candidates or thousands, Entire OnHire is designed to handle high volumes seamlessly, allowing your agency to grow without limitations. Our rostering interface, concurrent licensing model, and integration into payroll and invoicing enables our clients to scale their profit margin without needing to scale their internal team at the same rate.

  • Integration with Payroll and Invoicing
    Integrated payroll and invoicing solutions simplify administrative tasks, saving time and ensuring accuracy in payments. Managing timesheets, single touch payroll and ensuring the accuracy of payment details are all handled with ease due to the seamless connection of platforms.

Conclusion: The Path to Success in Temporary Staffing

Diversifying into temporary staffing is not just a growth opportunity—it’s a strategic move to future-proof your recruitment agency. By addressing the need for temp staffing in the ANZ jobs market and leveraging purpose-built software like Entire OnHire, agencies can unlock new revenue streams, retain candidates, and strengthen client relationships.

If your agency is ready to take the leap into temporary staffing, now is the time to invest in the right technology partner to support your journey. With Entire OnHire, you can easily overcome the challenges of temp staffing and set your business up for new possibilities of long-term success.

Ready to get started? Book a demo today and discover how Entire OnHire can transform your temporary staffing operations.

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