Every year, a flood of new AI tools, dashboards, and workflow automations promise to “optimize” the staffing industry. Tech adoption in staffing promises:
• Faster sourcing
• Smarter matching
• Simplified compliance
And every year, staffing owners invest heavily in new tech… only to watch it gather dust on the shelf.
The problem isn’t the software. It’s the culture around it.
An Industry Obsessed with the Next Fix
Applicant Tracking Systems (ATS) are a staple of staffing operations, but very few firms use them well.
Studies show that many staffing firms operate their ATS at only about 20% of its full capacity due to limited user adoption, lack of training, and basic cultural resistance to process discipline. (Source: SelectSoftware Reviews)
Meanwhile, even as generative AI becomes a hot topic, only 42% of staffing firms in North America say they plan to implement AI tools in the next five years. (Source: Staffing Industry Analysts)
TechServe Alliance recently noted that firms lacking foundational tech adoption struggle to implement AI — likening it to building a house on sand. (Source: TechServe Alliance)
Translation: Tech adoption in staffing has become a checkbox exercise for many firms, with most systems running at a fraction of their potential. The industry is adopting tech in theory, but not always in practice.
Why Tech Adoption in Staffing Fails Without Culture
Poor UX and weak training aren’t the root problems, culture is. The real issues are:
• A lack of accountability for system adoption
• Reluctance to change old workflows
• Management that doesn’t reinforce or monitor tech utilization
• A “checkbox” mentality: buy the tool, expect miracles
In other words, most firms buy the software, but never sell the benefits internally.
Why This Matters for M&A
If you’re thinking about selling your firm, know this:
Buyers don’t just evaluate what tech you have. They evaluate how your people use it.
Poor tech adoption signals bigger problems:
• Resistance to change
• Inefficient operations
• Painful post-acquisition integration
It’s one thing to change a comp plan or introduce new tech post-close — disruptive, but manageable.
It’s another thing entirely to fix a culture that fights every upgrade.
Buyers favor firms where:
• Staff are used to continuous tech improvement
• Data hygiene is strong
• Metrics are trusted and acted upon
Those firms integrate faster, scale faster, retain key players better — and command stronger valuations.
The Real Due Diligence Question
It’s not “Which ATS do you use?”
It’s:
• “What percentage of its capabilities are actually deployed?”
• “How is tech adoption driven and measured?”
• “How does the culture react to new tools and systems?”
In many cases, simply increasing your current ATS utilization — even by 20% to 30% — can create operational leverage that makes your firm far more attractive to buyers.
Bottom LineYour ATS isn’t broken. Your CRM isn’t broken.
Your culture is broken (or it’s your biggest hidden asset.)
Before you chase the next shiny tool, take a hard look at how your team engages with the tools you already have.
Because buyers aren’t just buying your systems. They’re buying the way your people think.
If a buyer asked how well your team uses your tech stack — would you be proud of the answer?
Building a strong tech culture is just one piece of making your firm truly buyer-ready. If you’re interested in more ways to protect, strengthen, and grow your staffing company’s value, you might also find these articles helpful:
- Building a Transferable, Buyer-Ready Staffing Firm
- Hidden Cybersecurity Risks That Can Derail Staffing M&A Deals
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