EXCLUSIVE: Ineffective use of tech is the biggest challenge for recruiters in 2025

Recruiters believe they are effective at their jobs, but they are being hampered by technology tools.

According to new data from Findem and Recruiter.com shared exclusively with UNLEASH, 65% of 930 recruiting professionals in North America said that their use of market insights and recruitment insights was ineffectual.

Legacy systems are a particular concern for recruiters – they are feeling pinched by high costs, and are disillusioned by low returns.

One in five respondents spend up to 80% of their tech budget on a single tech source.

Talking about the findings, Matt Charney, Editor-in-Chief of Recruiter.com, shared: “When 84% of teams say their primary sourcing tool delivers less than 40% of hires, it’s clear that throwing money at legacy systems isn’t the answer.”

This is a wake-up call for talent leaders to focus on optimizing how they use technology, including adding more analytics and insights into their hiring strategies,” Findem’s Chief Transformation Officer Brett Coin exclusively tells UNLEASH.

Charney added: “Smart TA leaders are shifting focus to better utilizing their existing talent networks through CRM and actually measuring outcomes beyond just volume metrics.”

Spend smart when it comes to recruiting

Interestingly, Findem’s data found that talent “tech stacks seem to be shrinking with most using five or fewer tools, especially since HR technology has gone gangbusters in the past few years”, Coin added.

He continues: “Consolidation is something the industry has long talked about, and now it seems to be actually coming to pass.

“They’re not spending less, but they’re toggling less thanks for recent tech advancements.”

Less than 40% of recruiters are planning budget cuts in 2025 – this suggests “continued investment by employers in talent acquisition capabilities to support continued hiring demand”, stated the report.

In reality, 42% of recruiters are keen to invest more in CRM.

Coin explains: “Instead of chasing cold leads, recruiters are focused on nurturing talent they know because it allows them to quickly adapt in an unpredictable job market.”

The top priority for recruiters in 2025 is to tap into passive candidates (71%), while 50% are keen to nurture qualified talent for future hiring.

At the end of the day, recruiters need to really remember that “if people are a company’s greatest asset, then losing people to the competition is your greatest liability”.

“The future isn’t about choosing between human insight and technological efficiency; it’s about integrating the two to create something greater than the sum of its parts”, concluded the report.