Recruitment Blog

The biggest waste of money in recruitment (and how to fix it)

Melinda Jennings is JobAdder's Content Marketing Manager. With over 13 years of industry experience, she has a passion for creating compelling and informative content.

Recruitment leaders are facing tighter budgets and rising competition. When every dollar counts, knowing where you’re leaking money can be the fastest way to reclaim margin and grow smarter.

At a recent event, JobAdder’s Senior Director of Global Sales Dan Hill named a key area where agencies are losing more than they realise: job ads. Although an essential investment, it can easily become a black hole for profitability if not managed strategically.

Job ads: Stop paying for placements you already own

“Right now, 78% of placements are made from job ads. Three years ago, it was 60%.”

Dan Hill, Senior Director of Global Sales, JobAdder.

(Data from JobAdder’s 2025 State of Recruitment Report)

That 18% jump tells a story. Recruiters are spending more on job boards, even though their own databases are bursting with warm candidates.

This is pretty important, especially when you consider:

Job ads come with rising costs and diminishing returns.
Candidates found through ads are often less engaged and more transactional.
Every placement made through your CRM costs less and builds more long-term value.

So how can you fix it? Dan’s advice is to take these steps:

Search your database as your first step, not your last.
Keep your database clean, searchable, and regularly updated.
Equip your team with smart search tools and automation that make rediscovery easy.

The efficiency mindset: Do more with less

To be truly efficient, you need to be able to cut waste. Agencies that make the most of their data, tech, and talent will find growth even in flat markets.

“Using your database better and managing performance well are the biggest single areas of savings right now.”

Dan Hill, Senior Director of Global Sales, JobAdder.

Start by asking yourself the following questions:

Are we spending where it counts?
Are our recruiters maximising what we already have?
Is every dollar spent creating momentum, or just maintaining comfort?

Growth starts with smarter use of what you already own

Every agency wants more growth, but the smartest ones start by stopping waste. Get more from your database. Get more from your people. And treat every efficiency gain as a step toward sustainable profitability.
To see how JobAdder has been able to help recruiters grow their talent pools and create better efficiencies around database sourcing, request a free demo with our team today.