Welcome to Issue 10 of Recruitment Trends & Industry Insights

Hi I'm Joanna Oakley CCWP MCIPD . With over 20 years of experience in the staffing and recruitment industry, I am a Transformation and Change Consultant and the Owner/Director of Argylestone Consulting Ltd . I help multinational staffing firms and local recruitment businesses implement technology and operational change and transformation programmes to drive growth and productivity.

EXCITING NEWS FOR 2025!

I’m actively seeking new clients and projects starting from 6th January and would love to hear from recruitment agency leaders who are ready to take their businesses to the next level. If you’re a recruitment owner, director, or CEO, and you’re looking for expert support in change and transformation, operational efficiency, or technology implementation, let’s talk.

At Argylestone Consulting, I specialise in helping recruitment agencies streamline their front, middle and back-office processes, improve productivity, and successfully implement new technologies (ATS, VMS, CRM & Automation tools).Whether you’re planning to set up a shared service centre, enhance your client services with MSP or RPO solutions, or need a detailed Business Optimisation Assessment for a specific department or function, I’m here to deliver strategies that unlock real value and efficiency.

What I bring to the table:

25 years of recruitment expertise, which includes recruitment branch manager, divisional manager, programme director, global head of business development and chief operations officer roles.

Multiple successful projects completed in both the UK and internationally.

A track record of empowering recruitment agencies and their teams to achieve their growth and transformation goals.

A deep understanding of process reviews, candidate experience, and aligning technology with business needs.

I’m available for hybrid projects in the UK or internationally, tailoring solutions that fit your specific business landscape. Ready to start the year with impactful transformation? Let’s discuss your 2025 vision and how I can help achieve it. Connect with me or visit www.argylestoneconsulting.co.uk to learn more about how I’ve helped other recruitment & staffing business thrive and drive their operational activities.

TRENDS: How staffing firms in the UK and America are adopting AI

Hot off the heels of Bullhorn's Engage event in London last week where AI was the topic of the hour, I wanted to review the latest SIA reports published which looks at how staffing firms in the UK and America's region, are adopting AI and what the differences may be. Introduction: The 2024 Landscape for UK Staffing and Automation

The latest UK Staffing Company Survey 2024, conducted by Staffing Industry Analysts (SIA), offers crucial insights into how the recruitment sector is navigating technological advancements, particularly the use of automation and AI. This comprehensive report sheds light on the sector's awareness and adoption of staffing/talent platforms, the anticipated impact of artificial intelligence, and the readiness of firms to implement these technologies.?

Here, I summarise the key findings and actionable insights from both the UK & North American?survey's, offering a clear lens into industry trends shaping the recruitment space.

Key Findings and Review of UK Data

1. Use of Staffing/Talent Platforms: Only 9% of UK staffing firms currently have an app or platform in place—either proprietary (3%) or third-party (6%).There is a declining interest in platform use compared to past years; only 14% of firms plan to build or implement a platform within the next two years. Notably, 54% of firms expressed disinterest in pursuing platform adoption. This reduced enthusiasm highlights potential barriers such as cost, complexity, or satisfaction with traditional processes. The majority of UK staffing firms that have adopted platforms view them as complementary to their existing operations. This means that instead of replacing their core services, these platforms are seen as tools that enhance service efficiency, improve client and candidate engagement, and provide flexible solutions. Firms benefit from streamlined processes that integrate platform capabilities with traditional, high-touch services.
2. UK Adoption Trends Over Time (2018–2024): Historical data indicates a downward trend in platform implementation. While 77% of firms are aware of these platforms, a significant portion remains hesitant to engage. The charted data for the period 2018–2024 shows a consistent increase in firms reporting they are either unaware of or uninterested in using these services. While most firms currently see platforms as supportive, there is an increasing awareness that AI technology may reshape business models over the next several years. Similar to the North American market, UK firms are cautious but increasingly open to adopting these AI enabled?platforms, recognising their potential to shift traditional practices incrementally.
3. UK Artificial Intelligence (AI) Impact: Firms were asked where AI is expected to make the most significant impact within the next 12 months. The results pointed predominantly to candidate sourcing (43%), followed by candidate screening and assessment (34%), and candidate engagement (17%). These three areas made up 94% of the responses, indicating a focused view on how AI can streamline high-touch recruitment tasks. Despite recognising the potential, only 16% of firms reported taking substantial action by selecting four or more proactive measures to promote AI use. The majority (61%) chose just one measure, suggesting slow, cautious adoption. A substantial portion of UK firms remains hesitant, with 54% reporting no plans to pursue platform adoption in the near future. This indicates a dual trend: those embracing digital tools to stay competitive versus those satisfied with established practices that emphasise personal relationships and industry expertise.
4. Proactive AI Measures: The report highlighted low activity in implementing AI-enhanced strategies. While some firms have begun to train staff or assign AI point persons, these efforts are still minimal. Purchasing AI licenses or deploying AI-enhanced software are areas where uptake remains modest, with no single approach seeing more than 31% adoption across respondents.

Key Data and Findings from the North America Staffing Company Survey 2024

The North America Staffing Company Survey 2024 highlights key trends in the use of automation, talent platforms, and AI within the region’s staffing industry.?

Below are the main takeaways:

1. US Current Platform Usage:13% of North American staffing firms currently utilise a proprietary or third-party talent platform. This proportion is consistent with recent years and indicates sustained interest, particularly among healthcare and industrial staffing firms. The reported effects of these platforms include a median increase in revenue of 10%, while expenses and staff levels at the median remained stable (0% change). However, some reported expenses ranged from -3% to +13% and staff increases up to +10%.
2. Complementing vs. Replacing Traditional Business:82% of firms using platforms stated these complemented their traditional business models, though 32% anticipated they might replace traditional methods within the next five years.
3. US Artificial Intelligence (AI) Impact: The primary functions where staffing firms expect AI to create the most impact in the next 12 months include: Candidate sourcing (36%)Screening and assessment (23%)Candidate engagement (20%)Despite these expectations, proactive adoption remains limited. Only 15% of firms have implemented four or more significant measures to promote AI usage. Common measures include having an AI point person, purchasing AI-enhanced software, and training staff formally, though each is adopted by fewer than 30% of respondents.
4. Proactive AI Measures: Larger staffing firms and IT-focused firms were more active in using AI, showing higher adoption rates for purchasing generative AI licenses and implementing third-party AI-enhanced software. Healthcare staffing firms displayed the lowest activity.

Analysis: Comparing the UK and North America in AI Adoption

The 2024 UK Staffing Survey and the North American Survey reveal important contrasts:

• Platform Adoption: North America exhibits a steady 13% adoption rate of staffing platforms, with 22% planning to expand their use. This contrasts with the 9% platform adoption rate in the UK, which also showed declining interest, with 54% not pursuing platforms. This suggests North American firms are maintaining steady engagement with technology, while UK agencies are more conservative, potentially influenced by costs and satisfaction with current systems.
• AI Implementation: Both regions foresee AI impacting sourcing, screening, and candidate engagement most heavily. However, the UK displayed a lack of extensive adoption, with only 16% implementing four or more proactive measures. North America’s firms echoed a similar cautious approach, with most selecting one or two measures and only 15% adopting four or more strategies.

Implications for the Industry and Clients

• North American Clients: Expect gradual but ongoing technological integration that supports candidate sourcing and engagement. Clients may see improved service delivery but should be aware that comprehensive AI adoption is still in its early stages.
• UK Clients: Firms in the UK might experience a more traditional approach for now, but proactive clients could push agencies to adopt more robust AI solutions. This gap represents both a challenge and an opportunity for firms to differentiate through enhanced AI-driven services.

Industry Implications

Agencies that move beyond minimal AI adoption steps will stand out. In North America, proactive investment in AI (with an average 13% platform use) suggests readiness for deeper integration; the UK, however, faces a gap that forward-thinking firms can bridge to set themselves apart. Enhanced training, change management, and measured adoption are essential for leveraging AI as a strategic differentiator, benefitting both clients and candidates.

Firms that act now will secure a competitive edge as AI continues to evolve from a complement to an integral component of recruitment operations.

Actionable Steps for Recruitment Agencies to Improve AI Adoption and Change Management

To remain competitive, recruitment agencies in both the UK and North America need to enhance their AI adoption strategies. Here are practical steps and change management processes to consider:

Invest in Training and Upskilling

• Comprehensive AI Training: Equip teams with knowledge through workshops or e-learning focused on AI tools applicable to sourcing, screening, and engagement. This helps build internal confidence and ensures effective tool utilisation.
• AI Point Person: Designate a staff member as the AI lead to drive initiatives and be the go-to expert for related technology queries.

Strategic AI Implementation

• Pilot AI Projects: Start small by integrating AI in high-impact areas such as candidate sourcing and assessment. Pilots allow agencies to gather data, evaluate outcomes, and make necessary adjustments before full-scale implementation.
• Third-party Solutions: Partner with reliable providers of AI-enhanced software to expand capabilities without the need for extensive development.

Foster a Proactive Culture

• Encourage Collaborative Innovation: Create internal forums or think tanks to discuss and brainstorm AI’s potential applications in business processes.
• Transparency and Communication: Keep all stakeholders informed about AI initiatives and their impact, ensuring open dialogue to mitigate resistance.

Change Management Processes

• Stakeholder Buy-in: Communicate the strategic benefits of AI adoption clearly to leadership and staff to ensure alignment on long-term goals.
• Iterative Approach: Implement AI in phases and collect feedback to refine strategies iteratively, which helps with continuous improvement and reduces disruption.
• Adopt Best Practices for AI Use: Establish guidelines for AI tools to maintain consistency and reliability, including data quality checks to support effective automation.

Leverage Metrics for Success

• Define Success Criteria: Set clear metrics such as time-to-hire, candidate quality scores, and efficiency gains to evaluate the ROI of AI implementations.
• Regular Reviews: Use analytics to monitor progress and adjust AI usage to meet performance objectives.

INSIGHTS: CIPD UK Labour Market Outlook – Autumn 2024 Summary

Last week the CIPD released it's autumn labour market outlook report.?In this quarter's analysis, the CIPD Labour Market Outlook provides a comprehensive view of current and future recruitment, pay, and redundancy trends in the UK.?

Below, I’ve highlighted the essential points to keep you informed:

1. Net Employment Balance: A notable recovery with the net employment balance rising to +21, the highest since autumn 2021. Public sector confidence returned to positive territory at +6 after a previous dip to -1. (Net employment balance is?the difference between employers expecting to increase and those expecting to decrease staff levels in the next three months)
2. Recruitment Challenges: Recruitment remains a focus, with 67% of employers planning to hire in the next three months. However, hard-to-fill vacancies persist, reported by 36% of employers—especially pronounced in the public sector at 42% vs last quarter's 48%
3. Pay Outlook: Median basic pay increases are holding steady at 3% in the private and voluntary sectors. In the public sector, expectations have surged to 4%, reflecting recent government-approved pay reviews, with a median 5% pay award expected over the next three months.
4. Redundancy Trends: Approximately 21% of employers anticipate redundancies, a trend consistent across both the public and private sectors.
5. SME Concerns: Upcoming employment reforms related to statutory sick pay and zero-hours contracts could disproportionately impact smaller employers, heightening operational challenges.

These findings offer a valuable look at the ongoing challenges and opportunities in workforce planning as we move into 2025.

A full copy of the report can be found here: Labour Market Outlook: Autumn 2024

FREE WORKSHOP

Argylestone Consulting: Free Optimisation Workshop (5 available!)

Are you looking to reduce operational bottlenecks, streamline processes, and increase productivity??

Until the end of 2024,?Argylestone Consulting is offering recruitment agencies a complimentary, three-hour Optimisation Workshop tailored to identify hidden opportunities within your organisation.

What’s Included

• Interactive Workshop (Up to 3 Hours) Join me, Joanna, a seasoned transformation consultant, alongside up to three of your key team members to dive deep into the challenges and pain points facing your recruitment agency. We’ll explore issues around process inefficiencies, obstacles in the sales funnel, tech limitations, and more.
• Tailored Optimisation Report (between 1-2 hours)Following our session, you’ll receive a concise Optimisation Report. This report will highlight: Initial observations and potential areas of improvement. Recommendations on where to focus your efforts for maximum impact. Insight into optimisation areas such as process refinement, technology alignment, and candidate/hiring manager experience

Why This Workshop?

With extensive experience across recruitment, technology, and business transformation, I understand the unique challenges that agencies face. This workshop is a no-strings-attached opportunity to gain fresh and actionable insights and explore how you can elevate your operational efficiency and profitability with targeted strategies.

Next steps

Book a complementary 45-minute call to understand how this free workshop for you and your team, can help get you ready for 2025. You can book your call HERE

WHAT I'VE BEEN UP TO

Bullhorns Engage Event

I had the pleasure of attending the Bullhorn Engage event in London last week, and I left feeling inspired and energised! It was also lovely catching up with old colleagues from RGF Staffing UK, previous clients from Lorien, Impellam Group, MSI International and industry colleagues old and new.

The event was brimming with valuable insights from a wide range of industry expert speakers and as such there were a huge amount of takeaways a few of which I’m excited to share here:

The Art of Human Connection: The lost art of face-to-face meetings and meaningful networking was a recurring theme. It’s clear that while technology can enhance our processes, demonstrating credibility through authentic client interactions and testimonials is irreplaceable. The post-placement community and nurturing dormant clients were highlighted as untapped opportunities—reminders that true engagement goes beyond placement.

Technology & Automation: Getting into AI now, is not early!!! If your recruitment processes aren’t leveraging AI, you’re already playing catch-up. From AI-driven lead nurturing and automating candidate engagement to smarter, automated searches, the future is now. The roadmap is clear—AI will be infused everywhere, enhancing user experience, automating tasks, and tracking ROI from events with precision.

Leadership & Adaptability: One of my favourite sessions was CEO insights where I resonated with the message from leaders like Bev White (CEO, Nash Squared), who underscored the importance of blending patience and boldness in leadership when it comes to change. It’s about trusting the process, embracing the “fail fast, learn faster” mindset, and understanding that giving your clients and candidates an option between AI and human interaction is what will set recruitment businesses apart as we go into 2025.

Change is Constant: The future isn’t a distant prospect; it’s unfolding now. The takeaway was clear: operational models from two years ago are outdated. Hannah Haigh, CEO of Meet, perfectly encapsulated this by reminding us that organisations must actively involve their change agents and make change a part of their DNA to thrive. It's a fine balance between being paralysed by potential change or going too fast and forgetting to engage and take your people on the journey.

Shifting Back Towards Consultative Recruitment: Matthew Wragg (CEO, Gattaca) spoke to the shift back towards consultative services. Technology paired with the right people has brought us full circle-back to meaningful, client-centric recruitment.

A final thought: Success looks different in today’s market, but it’s ours for the taking. As Bev White so nicely stated, as leaders we need to move from licking our wounds to running our businesses with resilience and laser focus. The opportunity in 2025? A perfect blend of the right people, innovative technology, and consultative strategies.

WHAT I'VE BEEN WATCHING

The Diplomat (Season 2)

So, I finally got through series 2 of The Diplomat, and I have to say, Keri Russell and Rufus Sewell did not disappoint. Keri’s been a favourite of mine since her The Americans days—no one does “barely holding it together” quite like her. And then there’s Rufus Sewell, who, I’ll admit, is one of the reasons The Holiday makes it into my festive guilty pleasures list every year.

Now, back to The Diplomat. Six episodes? Really? Just as I was settling in, it was over! But they packed a lot in: Kate’s wonderfully chaotic look, Hal’s refusal to do as he’s told (honestly, does he ever follow the plan?), and every single relationship being more tangled than a set of Christmas lights—all thanks to political manoeuvring. And the ending? Let’s just say, it was worth the ride. Here’s hoping we get season 3 soon because I need to know what happens next!

?BOOK A COMPLIMENTARY 30 MINUTES WITH ME

Did you know that the ability to lead change management is the #1 skill needed in leaders today? Yet only 35% of leaders effectively manage change (across industries), and 70% of change management initiatives fail. This is why bringing a true change management expert into your business during times of change and transformation is so important.

Whether your staffing business is based here in the UK or internationally, I'm here to help. Let's discuss your goals and how we can achieve them together! Don't hesitate to book a call with me using the link in comments to explore the possibilities. Looking forward to connecting and making a positive impact! BOOK YOUR COMPLIMENTARY CALL

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