Recruitment Blog

Client retention vs business development: Why both matter in 2025

Melinda Jennings

In today’s dynamic recruitment landscape, agencies face an ongoing challenge of balancing business development (BD) efforts with client retention strategies. Where traditionally agencies might focus on one at the expense of the other, mounting market pressures and intensifying competition means this is no longer an option.

Data from JobAdder’s 2025 State of Recruitment Report and Recruitment Benchmarking Report highlight that agencies who prioritise both winning new clients and deepening relationships with existing ones are the ones best positioned to thrive.

The benefits of prioritising both BD and retention

Creating strategies around both ends of the client spectrum – winning and maintaining – can seem like an overwhelming task. This is particularly the case if your agency is feeling the pressure of unprecedentedly high candidate applications (up 49% between 2023 and 2024) and a softening demand for jobs.

However, focusing on both can be key to not only overcoming a challenging market, but thriving within it.

Focusing on both BD and retention can help your agency:

Gain a competitive edge: Over 60% of recruiters report increased competition among agencies, making it harder to win new business. Agencies must refine their BD strategies to stand out.
Meet increasing client expectations: 72% of agencies say client expectations are higher than last year, meaning retention efforts must be proactive and strategic.
Combat decreasing business: Over 50% of recruiters report a decline in new job opportunities, making it even more critical to maximise the value of existing client relationships.
Grow revenue: Nearly 48% of agencies anticipate revenue growth in 2025, but this won’t happen without a strong focus on both BD and retention.

Here’s how it can work in three steps.

1. Set yourself up for initial success with business development

Business development is essential for agency growth. The Benchmarking Report reveals that:

63% of agencies are actively looking to invest more in BD this year.
The most effective BD methods include phone calls (41%), followed by LinkedIn outreach (21%).
Only 5% of agencies are completely satisfied with their BD strategies, meaning there’s massive room for improvement.

Agencies that leverage data, automation, and AI-powered tools are seeing better results in client acquisition. However, BD alone isn’t enough – without a retention strategy, agencies risk losing clients as quickly as they gain them.

2. Keep the growth going with client retention

While BD drives new business, retention ensures long-term profitability. JobAdder’s State of Recruitment Report shows that:

63% of agencies report steady client retention rates, indicating strong relationships can endure market downturns.
Agencies investing in client-first strategies (such as advisory services, consultative selling, and proactive engagement) are seeing better results.
The most successful agencies position themselves as trusted partners, ensuring they are the first call a client makes when hiring needs arise.

3. Get ahead with a balanced approach

Ultimately, to succeed, recruitment agencies must bring both the first two steps together and create an integrated strategy that combines:

Proactive BD efforts to secure new clients.
Retention-focused engagement to build long-term relationships.
Strategic use of AI and automation to improve efficiency and responsiveness.
A consultative approach to demonstrate ongoing value to clients.

Want to master client retention and strengthen your BD efforts? Download your copy of The Client Retention Playbook: How to be the first call your client makes. In just four easy steps, you’ll learn how to create lasting client relationships and secure recurring, profitable business.