More or less – when less means more in recruitment!

March 23rd, 2026 | Industry News

The good news is that the Great Resignation is passing, but the Great Stabilisation is impacting the internal market for recruiters. What does this mean? Industry wide, 65% of respondents say there will be ‘no change’ in their recruiters’ base salaries, and 92% offer ‘no change’ in their commission structure . Most recruiters surveyed expected no change to the number of staff they employ – this means that, just as in 2024, there is no expected growth in recruitment agency size in 2026.

UK recruitment agencies change direction

43% of agencies intend to focus more on contract recruitment, 34% are moving further into temp recruitment. Interestingly, ‘social sourcing’, the top recruiting channel 2025, dropped by over 50% in this survey’s valuation. So what is working? Agencies say their own database is their best source of candidates – allied to recruitment agency software UK, this internal resource is what’s delivering on both temp and permanent candidates, according to recruiters.

Younger clients challenge established recruitment practices

What else is ‘more or less’?  Working with Gen Z is producing some challenges too. Their pet peeves? Endless application forms, slow responses, and outdated communication channels. Recruiting software needs to be both transparent and digital friendly to succeed with these candidates. When 49% of Gen Z use IM platforms in their current workplace, being dragged into cumbersome email communications is likely to turn them off their potential employer – and their recruitment agency. Using web based recruitment software to reach these candidates meets their requirement for relaxed, instantaneous comms that aren’t either hierarchical or inaccessible.

Another substantive change is that digital first learning has to be fully integrated into the best recruitment CRM, as candidates increasingly favour ‘self-directed, digital-first learning models.’ This means that recognised sources of learning: colleges and accredited courses, whilst essential, are less popular with Gen Z, at least in the USA where 65% consider the Internet higher than college as a place to learn. Recruitment strategies, and recruitment agency software, both have to learn to accommodate this preference – however difficult it is to conduct due diligence for online learning. In addition, recruiters have to create relationships with their clients that allow them to communicate the value of this less formal, but equally valid, learning approach in younger candidates.

Finally, agencies are finding that freelancers in particular are challenging their payment systems and financial systems. Managing money in digital environments is something many younger candidates are doing in their current work, from tipping digital creators to hiring through cryptocurrencies in the gig economy. They expect speed, transparency and frictionless payment and many recruitment website design systems are falling short. Waiting 14 days for payments to clear is unacceptable to these candidates so ensuring walled based payment work seamlessly with online recruitment software is becoming an absolute necessity for those who want to engage Gen Z, whether as contract employees or as candidates for permanent positions.