"Latest Findings Show TA Leaders Are Investing in Tools Such as CRM"

"The latest findings show TA leaders are investing in tools such as CRM that help them be more strategic and forward-looking

Candidate pool diversification continues to be a priority for most employers, but it's proving to be a difficult endeavor for recruiters who are largely responsible for turning the mission into a reality, especially as corporations navigate a complicated DEI landscape. The study found meeting inclusive hiring goals is their biggest obstacle in 2025, cited by 44%, with a lack of qualified candidates a close second with 38%. Half said they will leverage recruitment technologies to help diversify their talent pools this year, and nearly half will apply tech to reduce human bias in hiring decisions.

"Leading companies understand that hiring more inclusively brings in higher-quality candidates, but it's a tough balancing act—bias can creep in, and AI can be unreliable if left to its own devices," said Tina Shah Paikeday, Innovation Accelerator General Manager at Findem. "But when AI is used the right way—to support decisions—it can be a total game-changer, helping recruiting teams build more inclusive pipelines to identify the best talent in the market."

Recruiters Overwhelmed by Inbound, Struggling to Find Top Talent in a Haystack

Talent teams aren't just struggling with inclusive hiring, they're also drowning in a flood of unqualified applicants. Three out of four reported a spike in applications per open role, and 24% cited an overwhelming volume of applications and low-performing hiring channels as obstacles to their success.

"Talent teams are facing an unprecedented influx of inbound, a challenge intensified by the rise of job application bots. Sifting through hundreds of applications per open role is impractical and a major drain on recruitment resources," said Findem CEO Hari Kolam. "Success in the TA world hinges on productivity and efficiency and, without the right tools to manage the swell of unqualified inbound, both take a hit. That's why 71% of recruiters told us they plan to prioritize technology for managing active applicants in 2025."

Tech Investment Priorities Shift—CRM Takes Center Stage

Only one in three talent leaders plans on decreasing their spend on talent acquisition technology this year, compared with approximately 60% who anticipate their spend to remain about the same or slightly increase. Where they intend on putting their dollars suggests a shift from passive sourcing to sourcing from the talent they already know. Nearly half – 42% – plan to increase spending on CRM, while 21% expect to decrease the amount spent on candidate sourcing solutions. Talent analytics and recruitment marketing are also expected to see budget boosts in 2025.

"The latest findings show TA leaders are investing in tools such as CRM that help them be more strategic and forward-looking—a smart move in the face of potential hiring freezes and economic uncertainty," said Findem Chief Transformation Officer Brett Coin. "Staying competitive will require a multichannel recruiting strategy where AI and automation handle the heavy lifting of sourcing across all hiring channels, and recruiters better use their time building real connections with candidates."

Legacy Recruiting Tech Still Dominates, Yet ROI Is Questionable

Recruiters remain heavily dependent on legacy recruiting technologies, yet many are feeling pinched by the high costs and disillusioned by low returns. The study reveals that 68% use LinkedIn Recruiter as their primary tool for applicant tracking and outreach – close to double the percentage of the closest-ranking alternative. What's more, although one in five spend 61-80% of their tech budget on LinkedIn Recruiter, 84% report the technology was responsible for fewer than 40% of their hires.

"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," said Matt Charney, editor-in-chief of Recruiter.com. "Smart TA leaders are shifting focus to better utilizing their existing talent networks through CRM and actually measuring outcomes beyond just volume metrics."

With costs rising and platforms covering more ground than before, many organizations are consolidating their tech stacks, and most are now using five or fewer recruiting tools.

Recruiters Confident in Their Abilities, But Not in Their Tech and Analytics

While 58% of recruiters believe their teams are above average in effectiveness, only 8% consider their organizations very effective. The top barriers:

Despite these challenges, very few blame unrealistic expectations or inexperienced teams, suggesting that the real issue lies in how teams are leveraging (or underleveraging) their tools.

Metrics Heavily Skewed Toward Volume vs. Performance

Talent teams continue to prioritize volume over performance metrics, raising concerns about long-term hiring quality and alignment with business goals. Sixty four percent ranked metrics, such as offer acceptance rate, time to source and number of open positions as most important, while 26% prioritized performance metrics such as candidate response rate, source of hire and candidate experience. Despite growing attention, internal mobility ranked dead last.

Despite Job Uncertainty, Optimism Around Hiring in 2025