Summary
Staffing has always been a complex endeavour, but perhaps never more so than now. The British Chambers of Commerce has cut its economic growth forecast for 2026 to 1.4%, down from 1.5%, citing rising payroll taxes, employment costs, and global trade uncertainties—all factors likely to weigh on hiring demand [1]. To help you weather the challenges ahead, we've created this comprehensive guide. We'll delve into what the future holds for the staffing industry, outline best practices to embrace, and help you prepare for the transformational changes ahead.
Staffing trends 2026 Vs. 2025
| Aspect | Staffing Trends in 2025 | Staffing Trends in 2026 |
|---|---|---|
| Remote Work | Increase in remote work opportunities as companies adopt hybrid work models | Continued rise in remote work arrangements as companies prioritize flexibility |
| Skills in Demand | High demand for tech skills such as data analysis and cybersecurity | Continued emphasis on tech skills, with a growing focus on AI and automation skills |
| Workforce Diversity | Emphasis on diversity and inclusion initiatives to create more inclusive work environments | Greater focus on workforce diversity and equity, with companies implementing more inclusive hiring practices |
| Gig Economy | Growth of gig economy workers and freelance opportunities | Expansion of gig economy opportunities, with more workers embracing flexible work arrangements |
| Employee Well-being | Focus on employee well-being, mental health support, and work-life balance | Heightened attention to employee well-being, with increased emphasis on mental health resources and wellness programs |
| Training and Development | Increased investment in employee training and upskilling programs | Continued focus on employee development, with more personalized training options and learning platforms |
1. Artificial intelligence (AI) and automation
Organisations will leverage AI-powered tools for candidate sourcing, resume screening, and even video interviewing. These tools minimise low-value manual tasks so that staffing agents can focus on more valuable work.
Additionally, staffing agencies are increasingly turning to AI-powered tools to support improved performance, and Empower by Ringover is a leading example. Designed for recruitment and staffing teams, Empower leverages AI-driven call analysis to provide real-time insights and personalised coaching.
By automatically transcribing, summarising, and analysing conversations, it highlights key strengths, identifies areas for improvement, and suggests actionable feedback to help recruiters communicate more effectively with candidates and clients. Its conversation intelligence technology not only accelerates the onboarding of new consultants but also drives continuous skill development across teams. In fact, Empower offers a call library with examples of what to do and not to do, and advanced AI analytics so individuals and managers can track progress easily.
2. Candidate Relationship Management
Candidate relationship management (CRM) is a growing trend in staffing that focuses on building and maintaining long-term relationships with potential candidates, even before they actively apply for positions. By using CRM tools, recruiters can engage with candidates through personalised content, keep them informed about job opportunities, and create a positive candidate experience. This proactive approach not only strengthens employer branding but also creates a pipeline of skilled candidates, reducing time-to-hire when new roles open up.
3. Gig economy and freelance talent
The gig economy is on the rise for many reasons, including increased interest in formerly disregarded potential employees. Recruiters have widened their focus from cities as the only source of high quality candidates and become increasingly open toward nontraditional employees like new parents or retirees, people with disabilities, or who were formerly incarcerated. In 2026, businesses will increasingly integrate freelance workers into their teams, promoting agility and cost-efficiency. Companies will focus on building strong relationships with freelancers to ensure a steady supply of high-quality talent.
4. Remote work and hybrid work models
Remote work has become the norm, and in 2026 it will continue to thrive. Businesses will adopt hybrid work models, allowing employees to work both remotely and in-office, ensuring flexibility while maintaining collaboration. Employers will invest in robust remote work technologies and tools to support this shift.
5. Skills-based hiring and reskilling
Skills-based hiring will take precedence over traditional qualifications in 2026. Employers will prioritise candidates with specific skills aligned to their business needs. To bridge skill gaps, organisations will invest in employee training and upskilling programs, promoting continuous learning and talent advancement. Upskilling is also key as more new technology is introduced to workplaces to ensure they can deliver the performance gains expected.
6. Diversity, Equity, and Inclusion (DEI)
Organisations are increasingly recognizing the benefits of diverse and inclusive workforces. In 2026, a strong emphasis will be placed on fostering DEI initiatives through inclusive hiring practices, unbiased job descriptions, and diverse interview panels. Employers will prioritise creating inclusive and equitable workplaces that embrace diversity in all its forms.
7. Data-driven decision making
In 2026, businesses will increasingly rely on data to drive staffing decisions. Recruitment analytics will be used to identify trends, measure the success of sourcing strategies, and improve candidate experience. Data-driven insights will help companies make informed talent acquisition and management decisions.
8. Employee well-being and mental health
The well-being of employees will take centre stage in 2026. Employers will prioritise mental health support, flexible work schedules, and work-life balance initiatives. Employee assistance programs and wellness resources will become essential tools for promoting a healthy and engaged workforce.
9. Employer branding and candidate experience
There's no secret there is a global labour shortage due to falling birth rates, ageing populations, and emerging economies. With increased competition for top talent, employer branding and candidate experience will play a crucial role. In 2026, organisations will focus on building strong employer brands, effectively communicating company values, and ensuring a positive candidate experience throughout the hiring process.
10. Remote onboarding and virtual collaboration
Virtual onboarding will become an integral part of the staffing process in 2026. Businesses will leverage technology to create engaging remote onboarding experiences, integrating new employees seamlessly into the company culture. Virtual collaboration tools and platforms will facilitate remote teamwork and foster a sense of belonging.
11. Ethical and sustainable staffing practices
In alignment with growing social consciousness, organisations will prioritise ethical and sustainable staffing practices in 2026. Employers will assess the environmental and social impact of their recruitment strategies and prioritise partnerships with diversity-led and socially responsible staffing firms. Ensuring the company has sustainable staffing practices is also key to attract younger generations, as that can be a deciding factor for them.
Key Staffing Trends for 2026
By 2026, the staffing industry is expected to undergo significant changes, with automation and AI playing a central role. According to Staffing Industry Analysts (SIA), the global staffing market is projected to grow at a rate of 6% annually, reaching a value of $650 billion [2]. Furthermore, McKinsey estimates that almost half of job activities could be automated by 2030, a possibility likely to deeply affect the staffing industry [3]. As companies increasingly rely on data-driven recruitment strategies, employee flexibility and remote work trends are expected to dominate, with most employees having hybrid work models.
The staffing landscape is evolving rapidly, and businesses must adapt to emerging trends to stay competitive. Remote work, gig economy talent, AI, skills-based hiring, DEI initiatives, and other trends will shape the future of workforce management in 2026. By embracing these trends and leveraging innovative strategies, organisations can build agile, inclusive, and high-performing teams that thrive in the evolving world of work. Staying informed and proactive in implementing these trends will be vital for businesses looking to succeed in 2026 and beyond.
What is the Future of Staffing?
The future of staffing is being rapidly reshaped by technology, evolving workforce expectations, and new economic realities. AI and automation are set to play a central role in candidate sourcing, screening, and engagement. This transformation will turn staffing agencies into technology-driven partners, enabling faster and smarter placements. Additionally, the growth of remote and hybrid work models will require agencies to adopt more flexible approaches to managing their temporary and contingent workforce.
Recruitment outsourcing is expected to gain importance, particularly in specialised sectors like healthcare and IT. This trend will allow agencies to offer more agile and scalable solutions tailored to dynamic client needs. Furthermore, the emphasis on diversity, equity, and inclusive hiring is pushing national staffing firms and healthcare staffing agencies to rethink their strategies for attracting a broader and more diverse talent pool.
Economic fluctuations, often described as following a "Lazy W" recovery pattern, will demand agility from staffing agencies. These firms must adapt quickly to shifting hiring demands and wage pressures. Agencies that leverage outsourced solutions or statement-of-work contracts will stand out by providing customised services that address these complex market conditions.
The staffing industry's growth outlook remains positive, with steady expansion projected year over year. This growth is particularly pronounced in digital-enabled staffing solutions and global markets. For members and followers of national staffing associations, staying informed about industry developments and implementing best practices in staffing law compliance and employee well-being will be essential to thriving in the staffing landscape of 2026.
Best Strategies in Staffing for 2026
Implementing Data-Driven Recruitment
In 2026, leveraging data-driven recruitment will be key for staffing agencies and firms aiming to enhance hiring outcomes. By utilising recruitment analytics, agencies can identify trends, evaluate the effectiveness of sourcing strategies, and pinpoint skill gaps within the workforce. This data-centric approach empowers staffing professionals to make better-informed decisions, leading to improved quality of hire and higher retention rates.
Whether managing temporary contracts or permanent placements, data insights enable a strategic and proactive recruitment process that aligns with client needs and market demands.
Enhancing Candidate Experience
Providing an exceptional candidate experience will remain a top priority as competition for talent grows both nationally and globally. Staffing agencies are prioritising transparent communication, streamlined application processes, and engaging onboarding experiences, including virtual methods for remote hires.
A positive candidate experience not only attracts top talent, such as travel nurses and locum tenens clinicians, but also helps agencies build strong employer brands. In 2026, fostering this connection will be essential to differentiate your staffing agency and ensure talent loyalty within the contingent workforce.
Legal Compliance and Ethical Recruitment
Adhering to staffing law compliance will be more critical than ever in 2026, particularly with evolving regulations surrounding AI usage and worker protections. Agencies must prioritise transparent and ethical recruitment practices that promote diversity, equity, and inclusion, aligning with increasing industry and societal expectations.
The American Staffing Association continues to offer guidance and forums, such as the Staffing Law Compliance Conference, to assist agencies in navigating complex legal landscapes. Ethical hiring and compliance efforts not only mitigate risks associated with temporary contract workers but also help secure long-term partnerships within the broader workforce.
Preparing for Transformational Changes in Staffing
Skills Development and Continuous Learning
One of the most critical preparations for transformational changes in staffing is prioritising skills development and continuous learning. As traditional degree requirements give way to skills-based hiring, agencies and employers must invest heavily in upskilling and reskilling programs to close talent gaps. This approach enables both temporary contract workers and permanent staff to adapt to new technologies, particularly in healthcare and tech sectors where demand for AI, cloud computing, and digital competencies is surging.
Personalised training platforms and ongoing learning opportunities not only help retain talent but also position agencies as leaders in workforce development.
Strategic Workforce Planning
Strategic workforce planning is essential to navigate the complexities of a growing contingent workforce and fluctuating market demands. Staffing firms need to anticipate shifts in labour supply and demand, accounting for trends such as gig economy expansion, travel nurse and locum tenens mobility, and remote work models. By leveraging predictive analytics and scenario planning, agencies can optimise talent pipelines, reduce time to fill positions, and mitigate risks associated with labour shortages or overstaffing.
This planning empowers agencies to deliver consistent, high-quality care and services aligned with client expectations.
Partnership and Collaboration
Forging strong partnerships and collaborations is becoming increasingly important in a transforming staffing landscape. Whether between staffing agencies, healthcare providers, or technology vendors, collaborative efforts enhance resource sharing and the adoption of innovation.
Membership and active participation in associations like the American Staffing Association facilitate access to best practices, compliance guidance, and industry summits that connect peers and elevate collective expertise. These alliances also support managing staffing law compliance and navigating regulatory changes affecting temporary contract employees and the broader contingent workforce.
Conclusion: Navigating Staffing Challenges in 2026
As you face the staffing challenges of 2026, agility and strategic foresight will be essential. The ongoing shortage of qualified talent across industries—particularly in healthcare, skilled trades, and technology—underscores the importance of speed, clarity, and an exceptional candidate experience. To remain competitive, staffing agencies and firms must adopt faster, data-driven recruitment methods while maintaining a human touch that builds trust and engagement.
Staying ahead of these trends requires a commitment to continuous learning and collaboration within the staffing community. One of the most important staffing industry changes is artificial intelligence, which will change the daily life of recruiters and staffing agents. To understand the advantages AI brings, start your free trial today!
Staffing Trends FAQ
What is the staffing industry outlook for 2026?
The staffing industry outlook for 2026 is cautiously optimistic, with forecasts pointing to modest growth of 2–3% across most markets [4][5]. Demand will be driven by the continued shift toward flexible work models, digital staffing platforms, and AI-powered recruitment tools [6]. However, challenges remain: economic uncertainty, rising employment costs, and sector-specific slowdowns (e.g., healthcare) could temper expansion [5]. Overall, staffing firms that invest in technology, upskilling, and candidate experience are best positioned to capture growth opportunities [6][7].
What is a staffing trend?
A staffing trend is a change or development within the staffing and recruitment industry which gains in popularity. Recruiting agencies often depend on staffing trend analysis to help them set strategy and objectives. Staffing trends can indicate not only the latest techniques, tools, and approaches working well for recruiters, they can also signal what types of candidates and industries will be in need of staffing support. In this way, staffing trends inform the tactics and objectives of recruitment agencies.
What are the future changes in staffing?
In the next year, staffing agencies will see significant evolutions in the following fields:
- Automation
- Skills-based hiring
- Evolving demographics
- Remote work
What are the five core of staffing?
The five core staffing tasks are:
- Selection
- Recruitment
- Employment
- Training
- Retention
Bibliography
Citations
- [1]https://www.reuters.com/world/uk/uk-employers-group-cuts-its-growth-forecast-over-budget-costs-trade-fears-2025-03-05/
- [2]https://qxglobalgroup.com/rs/us/blog/global-staffing-market-trends/
- [3]https://www.mckinsey.com/~/media/mckinsey/featured%20insights/Digital%20Disruption/Harnessing%20automation%20for%20a%20future%20that%20works/MGI-A-future-that-works-Executive-summary.ashx
- [4]https://www.staffingindustry.com/research/research-reports/americas/us-staffing-industry-forecast-september-2025-update
- [5]https://www.staffingindustry.com/editorial/cws-30-contingent-workforce-strategies/spend-on-temporary-staff-projected-to-edge-up-1-this-year
- [6]https://staffinghub.com/state-of-staffing/ai-isnt-optional-anymore-how-staffing-firms-are-using-it-to-win-in-2025
- [7]https://www.staffingsoft.com/ssblog/the-future-of-staffing-trends-and-predictions
Published on September 30, 2024.
