On-Demand Gig Economy Platforms vs. Traditional Staffing Agencies

Posted on 7 Apr 2024

Over the last decade, we have seen enormous growth in flexible staffing solutions. It's virtually impossible to walk more than 5 minutes in any major city across the world and fail to see a worker for a gig platform. To date, we have not seen a major gig player make a significant move into traditional staffing markets, most of the growth in this area has been in underdeveloped and underserved markets like grocery and fast food delivery. Today we delve into the intricacies of the gig economy model, and what traditional staffing agencies can learn from their fast growth and use of cutting-edge technology.

On-Demand Staffing Platforms strengths 

On-demand gig economy platforms provide unparalleled flexibility for both service providers (candidates) and end users(clients). This allows end users to access the service within seconds of opening the platform or app. With 24-hour access to a pool of work opportunities, service providers can quickly fill a couple of spare hours with work without having to pick up a phone or read a single email.


The major issue faced by gig platforms is scalability, aside from their significant investment in their platform and app they burn enormous amounts of cash building adequate numbers of service providers and end users. Once a gig platform has built an adequate number of service providers and end users, they are transformed into highly profitable businesses with the ability to replicate their model across the globe.

Pricing and economics

As they are generally selling to customers rather than businesses, gig economy average transaction values are relatively low and unlikely to become recurring revenue that drives many successful SASS models. Coupled with this low transaction value, there is a constant downward pressure on prices and a real risk associated with macroeconomic shocks that could lead to significant dips in their customer base over a relatively short period of time.

Streamlined Recruitment Process

Gone are the days of lengthy recruitment cycles. Gig economy platforms leverage advanced algorithms and machine learning technologies to onboard and match with suitable work opportunities seamlessly. This streamlined process reduces time-to-hire and drives engagement with service providers, allowing gig platforms to capture market share at a significant pace.

Traditional Staffing Agency's strenghts

Industry Expertise and Specialization

Traditional staffing agencies boast extensive industry expertise and specialization, providing tailored recruitment solutions to meet specific business needs. With dedicated recruitment consultants, these agencies offer personalized services, guiding businesses through every step of the hiring process.

Established Networks and Relationships

Years of industry experience have enabled traditional staffing agencies to cultivate robust networks and relationships within their respective sectors. Leveraging these connections, agencies can access top-tier talent and navigate niche markets with precision, offering businesses unparalleled access to skilled professionals.

Long-Term Relationship Building

Beyond mere recruitment, traditional staffing agencies prioritize long-term relationship building with both clients and candidates. By understanding the unique culture and values of each business, agencies foster lasting partnerships, facilitating ongoing talent acquisition and retention strategies.

What are the opportunities for staffing agencies?


While the vast majority of staffing agencies will never attempt to grow into a global company, there is little doubt that even the smallest agency placing 20 to 30 staff a month can benefit from deploying a staffing platform. While it's apparent the immediate return on investment will come in the form of increased candidate engagement, other advantages such as providing 24 access to your clients and candidates to your digital shop front alongside streamlined onboarding, compliance, and invoicing will enable your agency to grow at a far faster rate than one which relies on email shots and excel spreadsheets. 

Leveraging Hybrid Models

For existing staffing agencies, a hybrid approach combining elements of both on-demand staffing platforms and traditional agencies will prove most effective. By leveraging the strengths of each model, businesses can maintain their strong personal, relationship drive approach while also benefiting from the wide array of operational benefits effectively deployed technology brings to the table, maximizing flexibility and efficiency.


As staffing agencies navigate the complexities of today’s recruitment marketplace, the implementation of an effectivedx staffing is becoming a pivotal strategtic and operation decision. At AER Temp, we work with staffing agencies to deploy our award winning software to meet their staffing challenges head-on. Whether its working on an implementation plan or adding a key feature request into our road map, we develop a collaborative relationship aimed at increasing market share, achieving operational effcieciencies and increasing profitability.

Book a demo

Contact us today for a free demonstration