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Talent

What’s next for recruitment? Navigating the new normal

Megan Sergison

July 2, 2025

Talent

What’s next for recruitment? Navigating the new normal

Megan Sergison

July 2, 2025

Photo by Efe Kurnaz on Unsplash

With longer hiring cycles, steady job volume, and reduced staffing hours, the recruitment industry has found itself in an unprecedented space. No one can predict the future – whether a snapback is coming, or if the market has found itself in a new normal. But rather than wait around, today’s top performers are finding new strategies to drive growth.

At Engage Boston, we gathered experts in the industry –  Sunny Ackerman, Global Managing Partner for On-Demand Talent at Heidrick & Struggles, Tammy Browning, SVP and Group President at Kelly, and Bullhorn’s own Senior Research Manager, Lia Taniguchi – for a candid and forward-thinking discussion, moderated by Gretchen Keefner, Bullhorn’s Senior Vice President of Global Enterprise. They peeled back the layers on what’s driving success, where the challenges lie, and how recruitment professionals can proactively shape the future of the industry.

The current recruitment landscape

Despite broader economic uncertainties, opportunities still abound in the recruitment industry. So where can they be found?  Based on Taniguchi’s research, firms are increasingly shifting towards “total talent solutions” tied to direct sourcing. This means offering a broader suite of talent management services that provide value across the staffing industry.

Bright spots:

  • Total talent solutions: Offering a broader suite of talent management services.
  • Consulting services and project management: High-margin, extended services within recruitment continue to see opportunities.
  • AI projects: Enthusiasm for AI implementation and data hygiene projects remains strong.
  • Upskilling and reskilling: A significant focus on developing specialized, niche workforces for the future.
  • Executive search: A surprising resilience, as companies seek agile, experienced leaders to navigate turmoil.
  • Skilled trades and light industrial: Browning pointed to strong “green shoots” in manufacturing and light industrial in Kelly’s business. Bullhorn’s own data also shows an increase in light industrial staffing hours, suggesting a growing demand in this sector.

Soft spots:

  • Europe (especially Germany) and the automotive Industry experienced continued sluggishness starting off the year.
  • Tech and mid/lower-level finance positions are still experiencing a downturn.
  • Unskilled trades are experiencing a general decline, though skilled trades remain robust.

The evolution of “total talent solutions”

Browning tackled the often-murky concept of “total talent solutions” (TTS), acknowledging that its definition varies wildly across organizations. However, a common thread emerged: companies are looking to recruit and hire based on skills, rather than relying on buzzwords. The goal is to create a unified talent pool for full-time, contingent, and gig labor, leveraging data for efficient, skills-based hiring. Said Browning, “Both talent acquisition and HR are seeking the same thing for the first time I’ve seen in my 20 years.”

The search for top-tier leaders

“The need for top talent in terms of leadership levels is absolutely imperative right now,” said Ackerman. Heidrick & Struggles – primarily an executive search firm – is focused on “on-demand talent,” which involves accessing executive-level talent (VP to C-suite) for interim or project-based roles. In a dynamic market, organizations are looking for agile leaders who can navigate complex challenges, particularly within the CHRO and CPO offices, which face the dual demands of strategic and tactical HR functions alongside retention, development, acceleration, succession planning, and AI integration. This demand for top-tier leadership has kept their executive search business robust, even in pockets of recession.

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Today’s top performers are finding new strategies to drive growth.
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