Between shifting market dynamics, emerging technology, and changing client expectations, the future of recruitment remains uncertain, and growth can be hard to come by. Recruitment agencies looking not just to weather the storm, but thrive in spite of it, will need to find new ways to gain a competitive edge.

That edge can come from exploring new opportunities for diversification, such as adding a new service line or expanding to a new geography or vertical. At Engage London 2024, Bullhorn’s David Stott sat down with Kizzy Price, VP of Change and Business Excellence at the Adecco Group, and David Gettins, Managing Director at Lorien Resourcing, to discuss expanding service lines, leveraging technology, and preparing for the future of recruitment, no matter what it holds in store.

The case for diversifying your business

Market volatility, AI advancements, and shifting workforce expectations have created an environment where recruitment firms must continuously adapt or risk being left behind. Stott kicked off the session by asking attendees how many were prioritizing business expansion or market diversification in the coming year; the overwhelming majority raised their hands.

Gettins emphasized the need to evolve with market conditions:

“One of our missions is never to give a customer a reason to leave us. Diversification of our service lines and portfolio is key to delivering ongoing value.”

With clients demanding more strategic talent solutions, recruitment firms can no longer rely solely on traditional hiring models. Instead, they must expand their capabilities to remain competitive and retain their customer base.

Emerging opportunities in today’s market

The past 18 months have been challenging for the industry, with fluctuating job markets impacting permanent hiring. However, Gettins pointed out that contract staffing, managed service providers (MSPs), and recruitment process outsourcing (RPOs) have continued to thrive.

A key factor in today’s uncertain market is economic confidence, with Gettins noting:

“People want to move jobs, but they hesitate due to economic uncertainty. Once interest rates drop, we expect a wave of job movement.”

Price also highlighted the shift towards skills-based recruitment. Clients increasingly prioritize skills over traditional qualifications, pushing firms to rethink how they source and match talent.

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