What is Staffing Agency Software and How to Choose
June 10, 2025
What is staffing agency software? What a loaded question! When you think about the software you use on an everyday basis the answer seems simple, yet complicated. When I typed this exact question into Google, the AI overview defined staffing agency software as “specialized software designed to help staffing firms and recruiting agencies manage the entire hiring process, from sourcing candidates to managing clients and placements.” From a 360 degree view, this is exactly what it is and what it is designed to do! When you think about the different solutions you use on an everyday basis though, it can be a much more complicated question.
Staffing agency software is the heart of a staffing company’s operations. The right staffing software solution can help set yourself apart from the competition and elevate your business to a new height. In fact, according to the Staffing Hub 2025 State of Staffing Report, 22% of respondents said technology adoption is the biggest opportunity for driving growth this year and all of the fastest growing agencies plan to dedicate at least some of their budget to tech investments this year. This shows the important role staffing software plays in everyday staffing operations.
Over the past several years many new technology players have entered the playing field. While it is great to have options, it can also be overwhelming to decide on the best solution for your staffing agency. In this article, we will look at the different components of staffing agency software, discuss the benefits of going with an all-in-one staffing software solution and how to choose the right solution for your staffing business.
Components of Staffing Agency Software
When you search for staffing software on G2, a leading software review site, 188 staffing software solutions come up in the search results. That’s a lot of software to choose from! All of the solutions though are different and offer different capabilities to staffing companies. In this section we are going to break staffing software down into 5 main solutions that staffing companies may utilize on an everyday basis.
- Applicant Tracking System (ATS): In staffing your applicant tracking system or “front office solution” is the core of your software. It helps manage your candidates and place them onto assignments. It helps keep track of notes, activities, job statuses, communication, and more. If a staffing company is going to invest in any kind of software, an ATS is where you want to start as it is the meat and potatoes of your operation.
- Customer Relationship Management (CRM): A CRM is used to help manage client communication, notes, documentation, and more. If you invest in a front office staffing software solution, it often acts as both an ATS and CRM, which is a game changer. Your ATS and CRM work together for an effective and streamlined workflow. Sales executives and recruiters can work in the same system and all information flows together.
- Back Office: Back Office is the system you use to handle payroll, billing, accounts receivables, and more. Back Office solutions designed for staffing help handle the unique needs of contract and direct hire staffing. Some back office solutions completely interact or integrate with front office, which gives staffing companies an incredible seamless workflow. For example, payroll checks, W2’s, client invoices, and more could all be viewed in the front office. This not only connects the two systems, but it increases transparency between all departments at the staffing agency.
- OnBoarding: OnBoarding candidates is imperative in staffing. Many staffing companies have a built in OnBoarding application on their website that allows candidates to apply for jobs. OnBoarding software that connects to your front office software or integrates, allows candidates to apply on your website and flow right into your ATS, once again allowing for a seamless workflow.
- Mobile App: If you’re not currently using a candidate mobile app, you may want to consider offering one to your candidates. A candidate mobile app will allow candidates to search for jobs, apply for jobs, accept job opportunities, message with their recruiter, and more. Of course all mobile apps will have different capabilities, but these are some of the features you may be able to offer your candidates. Self-service tools have become more imperative over the past couple of years. A mobile app offers candidates a way to find jobs and get placed onto assignments, with limited back and forth communication with the staffing agency.
Seeing if your current staffing software provider has a mobile app is a great place to start if you are not already using one.
In addition to a candidate mobile app, your staffing software provider may provide mobile capabilities for recruiters and clients, so information can be accessed at any time while on the go.
How to Choose Your Bells and Whistles
The different components of staffing agency software we reviewed are solutions that are at the core of staffing company operations. Of course, there are many other solutions you may also be thinking about, such as AI and Automation software, texting solutions, and more. How do these come into play and how do you choose what “bells and whistles” you should invest in?
As with most things, one size does not fit all. What one staffing agency needs may not be what you need at all. The first step to deciding on what you need is looking at the solutions we discussed in the previous section. These solutions are the core of staffing business operations, so we first want to start there. What solutions do you currently have? What solutions do you not have that you think would be beneficial for your company? From the solutions you have, which ones communicate with one another? The more communication you can get between the systems the better.
Next think about your current recruiting process. What is working, what are your pain points, and what can be improved? How is your current software supporting your processes and are there any areas that can be improved in your staffing software? As you go through the above questions and list out answers, it will help you identify where you are at and what is lacking.
As an additional note, if this process leads you to thinking you may need another software solution, always talk to your current provider first to discuss pain points and what you are looking for. There is always a chance that your current staffing software provider already has what you are looking for and it is not being utilized.
In the end, if you decide your staffing software solutions need to be re-evaluated, always start with looking for a Front Office solution first. As mentioned earlier, Front Office is your meat and potatoes, your bread and butter. Everything revolves around your Front Office solution, so that is where you need to start when beginning to evaluate solutions.
The More Complete System the Better
You may often hear the term “all-in-one” staffing software solution. An all-in-one solution will encompass all or most of the software solutions we discussed earlier. As an example, let’s think about our smartphones. Now we use our phone for everything—texting, calling, scrolling through social media, paying bills, sending money, exercise tracking, boarding passes for planes, and much more. Almost everything you do is connected to your mobile device. Now think about your phone 20 years ago and how much has changed. You mainly used your phone for texting and calling. Everything else was done separately and by other means.
Similarly, staffing software can bring your entire operation together. Instead of investing in separate systems with different logins and data that doesn’t communicate, everything can be connected: Front Office, Back Office, OnBoarding, Employee and Client Web Portals, Mobile, etc. All of these solutions linked together will not only streamline workflows, but it will eliminate costs and manual data entry. Additionally, it gives you the opportunity to see a bird-eye view into your business for increased transparency, reporting, and analytics. Better and smarter decisions can be made through real-time data insights into each aspect of your business.
It can also elevate your customer service and candidate experience. If a candidate or customer calls in, all information is stored in one system, so answers to questions can easily be found. Self-service tools that are tied to a staffing software solution can also have many candidate and client benefits. For example, employee and client web portals provide access to self-service tools to access information they need to complete tasks on their own. All of this information is tied back to your Front Office for elevated communication, efficiency, and convenience.
Staffing Software Integrations
The other important aspects of a staffing software solution are partners and integrations. Background checks, texting and automation platforms, VMS tools, WOTC, etc., are all examples of partners and integrations a staffing software solution may have. When evaluating solutions, it is important to find out who the staffing software integrates with. Do they integrate with your current partners? If not, would you be comfortable switching to their preferred vendor(s).
AI Tools Are Imperative
61% of staffing agencies are already using AI for business applications and 71% of agencies not using AI plan to adopt AI in 2025, according to the Staffing Hub 2025 State of Staffing Report. AI is certainly not going anywhere, and it will be a must to adopt AI into recruiting practices to stay competitive. When evaluating software solutions, you will want to ask what AI tools they currently have and what is on the roadmap. This will help determine if the AI tools in the software are sufficient or if another AI investment will be necessary. Just like staffing software though, when evaluating AI tools you need to know what you are looking for. Do your research ahead of time to see how you can incorporate AI into your everyday processes and have a plan.
Grow with the Right Staffing Software
We covered a lot about staffing software in this article! As you review and evaluate staffing software solutions, know it is more than just a tool that helps you do your job—it is an essential component of your business that can take it to the next level. Staffing software should foster growth, streamline operations, and eliminate bottlenecks in your processes. There is no one size fits all when it comes to staffing software, so finding the solution(s) that is right for you is essential.
Questions about staffing software or are you interested in learning more about an all-in-one solution? Request a Demo of Ultra-Staff EDGE Staffing Software, a complete staffing software solution with Front and Back Office, OnBoarding, Web Portals, Mobile, Scheduling, and Data Analytics.
Written by Jennifer Roeslmeier Mikels
Jennifer Roeslmeier Mikels is a Sr. Digital Marketing and Brands Manager at Automated Business Designs, developers of Ultra-Staff EDGE Staffing Software. Jennifer regularly publishes articles about key topics surrounding the staffing industry with both local and national staffing associations.