Our 2025 Predictions Beyond Mainstream Projections
As a firm that specializes in recruiting for the staffing industry, XPG Recruit has a unique front row seat to the action. While we monitor activity in the industry and reflect on 2024, we are seeing trends that align with some of the data being circulated for the new year. But with our unique perspective from working with companies across multiple verticals, we can offer insights that extend beyond the mainstream predictions available.
The early data we have captured to date combined with our experience and expertise in the industry gives us the opportunity to offer some additional insights and our own predictions:
- The emphasis on hiring sales roles will continue, but leadership hires will increase as well. In 2024, we saw a greater focus on hiring individual contributor roles versus leadership positions than in previous years. We believe this was largely because many staffing and recruiting companies were seeing margin pressures and a reduction in revenue that limited the hiring of leadership. However, we have already seen a small increase in the demand for leadership positions for 2025 and expect that to continue.
- The speed at which companies moved through the hiring process declined throughout 2024 and is increasing as we approach 2025. We give a lot of weight to client and candidate activity to tell us what to expect from the future. Last week was our most active week in six months so there is a lot more to our optimism. Our increased activity points to the market loosening up:
- Increase in new orders
- Candidate and interview flow increasing
- Some companies opening up multi-position searches
- Companies are optimistic but are moving forward cautiously. We find most industries projecting single-digit growth; the number we hear a lot is 5%. We think those numbers may be low, especially as the year progresses. However, because everyone is wary, many will be testing the market with small steps forward, then evaluating the move before taking another step, resulting in a stair step growth approach rather than a straight-line recovery.
- Companies are first looking to Top Grade their talent before opening up a search. Many of the companies with whom we speak are “expecting” to hire soon. While they may not be formally hiring, they have asked us to let them know of any good talent available. Things have loosened up and they are now on the lookout for strong talent that could replace average or lower performing talent within their organization. Tenure continues to be an extremely important factor, out-prioritizing recent performance. We believe this is because the market has been unusual in the years since the pandemic and companies want to see a history of success and dependability, often pre-pandemic.
- Candidates are starting to consider new job opportunities outside their current companies. A change to a new job feels risky when in a struggling market and when already employed. Now that optimism is increasing, candidates are beginning to consider new opportunities. Look for that to ramp up as the year progresses. On the candidate side, if you are looking to make a change, the best opportunities will be early as talent is still tight and hiring companies need to offer more for the move. If you are hiring, beginning the process sooner is still key as it will give you a leg up on getting the best talent.
We are also seeing an uptick in Light Industrial and Information Technology sectors, which matches mainstream projections and functions as a good indicator that the market as a whole is on the rise.
We will continue to share our insights as the year begins. We would love to hear how you are feeling about 2025.