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Navigating recruitment challenges in 2024

Recruitment companies play a crucial role in bridging the gap between job seekers and employers. But in a turbulent economic climate, and at a time when there are so many digital and AI recruitment solutions on the market, recruitment leaders are facing new challenges, that will require a careful hand and effective leadership to overcome.

Here are some of the most common challenges recruitment companies are likely to face in 2024, and some of the solutions that leaders may want to consider.


Challenge 1: High Employee Turnover

Despite the "great resignation" being well and truly over, recruitment companies are still experiencing high turnover rates among their staff. This is partially because a large number of recruitment businesses have called their staff back to the office full-time, and there are many who don't wish to give up the flexibility of hybrid working. However, this turnover is likely to be compounded over the coming months by the change in the marketplace. There will be a number of recruiters who began their recruitment careers in 2021 and 2022, when there were unprecedentedly high numbers of job vacancies and recruitment companies were in demand. The tides have shifted somewhat during 2023, and many who found their first years in recruitment relatively easy are now facing challenges in their business development for the first time. As things get tough, and their bonuses begin to shrink, they may consider leaving for more stable in-house roles or to pursue something different altogether.

Solution: The best recruitment leaders have already begun to act, providing extra training and support for staff in work winning, and exploring new avenues for business. Leaders can also help combat turnover by fostering a supportive work environment that values employee well-being. This includes prioritising a healthy work-life balance and good mental health. Initiatives such as a wellbeing coach, or mental health first aiders will be important, and recognising and rewarding achievements will also boost morale and retention.


Challenge 2: Attracting Quality Candidates

For many of the same reasons, attracting top talent is going to be a significant hurdle next year. For some, this may not be an issue, but those who still have ambitious growth plans in their sights, struggling to attract quality talent (especially experienced recruiters), will cause an issue. It may be harder still due to evolving job seeker expectations, the rise in cost of living (and related salary requirements) and the increasing importance of digital platforms and skills.

Solution: This is the time to sort out your EVP (Employee Value Proposition). Helping potential recruiters to see your company as a leader in the industry, and showing all the benefits of being a part of your company could help to tempt experienced passive candidates as well as new graduates. Leveraging technology to enhance the recruitment processes to make it more efficient and candidate-friendly could also make a difference. It's important to understand the motivations and aspirations of job seekers within the recruitment sector, and tailor the recruitment approach accordingly.


Challenge 3: Building a Strong Recruiter Brand

More and more recruitment companies are understanding the importance of establishing a strong, reputable brand. But this can be challenging at a time when trust in the recruitment industry is low amongst candidates and the requirement for recruiters is low amongst clients. A weak brand, poor reviews, or just an inability to communicate values and solutions, can deter candidates and clients.

Solution: Leaders should actively work on building a positive brand image through both the company’s social media pages, but also through their own personal brand. By encouraging and supporting team members to be active on LinkedIn and build their personal brands too, it’ll be easier to demonstrate a positive company brand. It’s absolutely crucial to ensure teams are prioritising exceptional customer service to create positive word-of-mouth – this includes keeping candidates up to date – remember, no news IS news to a candidate waiting on a response from a hiring manager. Another great way to enhance the brand is by engaging in community and industry events. In 2024, consider sponsoring awards, attending networking events and hosting business breakfasts.


Challenge 4: Effective Business Development

Continuous business development is vital for survival and growth in the recruitment sector. This involves not just acquiring new clients but also maintaining relationships with existing ones. But over the past year, winning new business hasn’t been easy, and it’s not going to get easier during 2024. Businesses are concerned about the economic climate so aren’t hiring in the numbers they have been over the past couple of years.

Solution: This doesn’t mean recruiters should give up on business development. Good leaders should help their team to be proactive in mining their database to reignite old relationships, whilst also putting the effort into nurturing existing relationships. Now is the time to invest in training in sales and negotiation for staff. Finally, this is a good opportunity to begin to use data analytics and AI to identify market trends and potential areas for growth.



The recruitment industry's landscape has changed over the past year – the pendulum has swung back, and the challenges recruitment companies now face require adaptive and visionary leadership. By focusing on employee satisfaction, candidate experience, brand building, and proactive business development, leaders in the recruitment sector can steer their companies towards long-term success and stability. This approach not only addresses the immediate challenges but also positions the company for future growth in an increasingly competitive market.