Key Takeaways:
- Diversity hiring has become the top challenge for talent teams (44%). Meanwhile, they’re overwhelmed by increased application volumes, prompting plans to adopt technology that better manages active applicants.
- Recruiters are shifting focus from passive sourcing to relationship management, with 41% planning to increase CRM spending, while questioning ROI on legacy platforms like LinkedIn Recruiter.
- Despite economic uncertainty, recruiters remain optimistic about 2025 hiring, but many say ineffective use of technology and analytics (65%) is their biggest organizational weakness.
A new study reveals what’s really keeping talent teams up at night in 2025. According to research from Findem and Recruiter.com, which surveyed 930 recruiting professionals, diversity hiring has claimed the top spot on the list of challenges, while tech ROI concerns and a influx of unqualified applicants are pushing recruiters to rethink their strategies.
Diversity is the #1 challenge (but recruiters are flooded with applications)
Meeting inclusive hiring goals is the greatest challenge for talent teams, with 44% citing it as such, closely followed by the ever-present struggle to find qualified candidates (38%).
Meanwhile, recruiters are getting overwhelmed with applications. Three out of four report a significant increase in applications per open role, and job application bots may be partially to blame for flooding systems with unqualified candidates. The situation is prompting 71% of recruiters to prioritize tech that can better manage active applicants.
The big shift: from LinkedIn to CRM
Recruiters are pivoting away from passive sourcing and toward better managing the candidates they already know. More than four in 10 plan to increase spending on candidate relationship management (CRM) systems, while 21% expect to decrease spending on new candidate sourcing.
Also noteworthy is the ROI gap on legacy platforms. While 68% of respondents use LinkedIn Recruiter as their primary tool and some teams spend up to 80% of their tech budget on it, 84% say it delivers fewer than 40% of their hires.
Recruiters trust themselves, not their tech
Recruiters generally feel positive about their own abilities — 58% rate their teams as above average in effectiveness. However, only 8% think their organizations are very effective overall. And the biggest culprit is ineffective use of technology and analytics (65%).
Recruiters are realizing that it’s not about having more tech — it’s about using what you have better.
Proceeding with cautious optimism
Despite economic uncertainty, most recruiters remain optimistic about hiring in 2025. About 45% expect to make more hires than last year, and only 12% anticipate cutting back. Even more telling: close to a third plan to increase their own team’s headcount this year, and just 7% expect reductions. Clearly, few are worried about AI replacing recruiters anytime soon.
For staffing agencies, these trends offer clear direction:
- Build expertise in diversity hiring — it’s your clients’ biggest pain point. Find ways to help them screen the flood of applications more efficiently.
- Focus on relationship management over simply finding new candidates.
- Take a hard look at your tech stack’s actual ROI — those premium sourcing tools might not be worth what you’re paying.
- Most importantly, consider shifting your metrics beyond just volume. While 64% of talent teams still focus on quantity metrics like time-to-fill, the smart money is on quality measures that demonstrate long-term value.
The recruiting landscape is shifting fast in 2025. The firms that adapt quickly to these changes will be the ones that thrive in the coming year.
