Technology for recruitment agencies
Starting a recruitment company

Technology for recruitment agencies

In today's fast-paced business world, using the right technology isn't just a nice-to-have—it's crucial for recruitment agencies that want to stay ahead and work smarter. Understanding and applying the right recruitment software is key for those in the industry, as it changes the game from a slow, manual effort to a slick, efficient process.

Top tools for recruiters

Easy-to-use technologies such as Applicant Tracking Systems (ATS), to manage hiring process and candidates, automated Payroll software to ensure contractors are paid efficiently and accurately, and accounting software to keep finances in check, are revolutionising how agencies operate. Without a doubt, these tools boost productivity, freeing up agencies to really invest in the human side of the business—the relationships with clients and candidates.

We’ll dive into these three main types of recruitment agency software in detail and also consider some others an agency should consider before launching.

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The recruitment agency tech stack

ATS - Applicant Tracking System

Let's start with the Applicant Tracking System, or ATS as it's commonly referred to. This is the most essential tool in any recruiters kit. An ATS is essentially a CRM with additional features specific to the hiring process. It not only allows you to manage your database of candidates and clients, but it also streamlines and automates the recruitment process. It makes life easier by handling tasks such as creating job requirements and descriptions, posting jobs online, automated candidate screening, arranging interviews and managing interactions with the employer. Many ATS make use of AI to parse CVs and shortlist relevant candidates. 

Talent acquisition from beginning to end

The ATS handles the entire recruitment process from beginning to end, taking candidates through the different stages of the interview process all the way through placement.

  • They integrate with job boards, saving time by allowing the recruiter to create the job once and post to multiple boards across the job market (Indeed, Seek, LinkedIn).
  • As applications come in, qualified candidates are automatically shortlisted 
  • All interactions with the client are recorded and interviews are arranged and tracked
  • Candidate information and reference checks are captured and the successful candidate is handed over to the employer

An ATS will also allow you to communicate with and market to your talent pool and other contacts in the recruitment industry.

Back to the days of Excel

Without an effective ATS, the recruiter would be back to the days of Excel spreadsheets. If a recruiter is managing 10 jobs at once and there are at least 5 sourced candidates for each, that is 50 candidates. Each is at a separate stage. What could be an incredibly complicated process is made easy with an ATS, as it provides a snapshot of where each candidate and job is at.

There are a wide range of options in the Australian market. Key players include JobAdder, Bullhorn and Vincere. Alternative options include Loxo, Recruit Wizard, Turbo and there are niche options such as Guardhouse (for security), Traffio (for traffic management) and Entire OnHire (for medical staffing agencies).

Payroll Software

The second essential tool for a recruitment agency is payroll software.

Payroll is an extremely complex task and is absolutely essential to get right. From capturing timesheets, interpreting awards, calculating pay rates, paying contractors and invoicing clients, everything must be 100% accurate and on time, everytime. With payroll software, these processes are streamlined, reducing the risk of costly errors.

Whether this is required depends on whether you are recruiting temporary or permanent. It is unlikely to be needed if you focus on perm only, however if an agency is managing contractors then it is an important piece of kit. Payroll software may be standalone piece software or it can come integrated with another application, such as accounting software.

A common option for a small agency is to outsource the payroll function to a company such as APositive. With this option, the outsourced payroll provider will be using a sophisticated payroll platform, such as Astute Payroll. Payroll software can also integrate with an ATS making the process of onboarding a candidate following a placement easier.

What does payroll software do?

  • Onboarding - collecting information on contractors, such as personal details, work preferences and super.
  • Timesheeting - a good payroll platform will feature a timesheet system for self-service input from contactors
  • Interpretation - those hours entered into a timesheet will be interpreted based either an agreed rate or an award. Awards for certain industries can be extremely complicated with shift allowances, overtime, penalty rates and more. This is known as complex award interpretation and these awards must be built into a system designed to handle this level of complexity.
  • Payroll - the key function of the payroll software to pay the contactors. Following the interpretation of hours, the system will make the payment to the employees. 
  • Invoicing - Payroll software often features an integration with leading accounting platforms (such as Xero). Invoice details will be generated in the payroll system before it is passed over to the accounting package where the invoice is created and sent to the client.

Leading players in the payroll software space include Astute, Invoxy and Employment Hero.

Accounting software

The final essential tool is accounting software. Platforms such as Xero and MYOB have changed the lives of small business owners the world over. It's like having a virtual accountant right at your fingertips. Any financial task, be it handling accounts payable, managing accounts receivable, or tracking expenses, is managed efficiently. No more headaches chasing payments or worrying about the money flowing in and out of your business.

When it comes to recruitment, there isn’t actually a great deal of difference between the way they use accounting software, compared to any other small business. Other than as mentioned above the integration with payroll software.

What else?

However, recruitment agency technology doesn't end here. If you’re looking to start a recruitment agency and want to achieve long term success, there are a few other things you'll need to consider right from the beginning. 

Job boards

You’re going to need accounts on all of the main platforms, such as Seek, Indeed and LinkedIn Jobs. As discussed above, a good ATS will integrate with these to make life easier.


It goes without saying you’ll need LinkedIn. A recruiter will spend a lot of their day on the professional social network; building pools of top talent, posting jobs, networking and more. It’s therefore essential to create a LinkedIn company page for your business.


At a bare minimum you’ll need a basic landing page. There are simple website builders for small businesses such as Wix and Squarespace that can help you get a website live in a matter of hours. 

Focusing on the customer experience

While technology is crucial, it should not overshadow the 'human touch' in recruitment. Striking a balance between streamlining processes with recruitment technology and creating a personalised hiring experience is vital. Remember, technology is an invaluable ally in the recruitment process, but the final decision should always consider the human factor. At the end of the day, recruitment is about people, not just processes.

So, that's the lowdown on how recruitment companies are using technology. The tools mentioned above, along with the right recruitment strategies can help you get your business off the ground and set you up for future success. Remember, it's all about finding the right balance between tech and touch. Technology is there to help, not become a hurdle. A recruitment company that gets this right is sure to be a hit with job seekers and companies alike.

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