In the world of recruitment, 2024 was a year of reckoning. Unpredictable markets, cautious clients, and shifting hiring patterns forced even the most established firms to rethink their business strategy.
If there’s one insight that stood out above the noise, it’s that diversification isn’t a nice-to-have, it’s the difference between thriving and merely surviving.
How Diversification Sets Winners Apart
While many firms saw permanent placements stall or decline, diversified players found to sustain and even grow their business by tapping into counter-cyclical revenue streams and long-term client partnerships.
Robert Half’s consulting division, Protiviti, grew revenue by 5.3% year-on-year, increasing its contribution to group revenue from 31% to 34%.
According to a Staffing Industry report, Protiviti saw 5.3% YoY growth in Q4, while other business segments declined 6.1%. In a year when demand for core recruitment services softened, this diversification acted as a crucial buffer.
Korn Ferry, now positioned more as an organisational consultancy than a traditional recruiter, generated 17% EBITDA margins through its higher-value consulting and outsourcing offerings, well above the 2–3% typical of general staffing firms.
Earlier this month I congratulated Gi Group for achieving an astonishing 22.7% jump in revenue for 2024 to €4.7bn as a result of the acquisition of Kelly’s European business. This was their 51st M&A transaction to date and meant they were able to offer services that were previously marginal for the Group, such as RPO, master vendor and services for independent contractors.
For executive search firms reliant solely on retained placements, these numbers send a clear signal a broader portfolio builds resilience.
This pattern is consistent across the industry. Firms with multiple revenue levers outperform those reliant on retained search alone.
What Diversification Really Means for Executive Search
For firms specialising in C-suite and senior hires, diversification doesn’t mean chasing volume or commoditising your brand. It means evolving alongside client needs, adding value beyond just finding top talent.
Here’s what that looks like in practice:
Leadership Consulting
Advising on succession planning, leadership effectiveness, culture transformation, and board governance. These services position firms as strategic advisors and can lead to long-term embedded client relationships.
Executive Interim Placements
Providing interim CEOs, CFOs, and functional leaders during periods of transformation, M&A, or crisis. This capability can be especially lucrative, as many companies adopt ‘try before you buy’ approaches in uncertain environments.
Talent Intelligence & Market Mapping
Delivering proactive insights into competitor org structures, compensation trends, and leadership gaps. This not only generates recurring revenue, but also strengthens your firm’s role as a trusted intelligence partner.
Diversity, Equity & Inclusion Advisory
More clients are seeking guidance on how to diversify leadership teams. Search firms that offer DE&I diagnostics, inclusive hiring training, and diverse talent pipelines are better aligned with client priorities.
As Korn Ferry CEO Gary Burnison noted: ‘cyclically sensitive talent acquisition offerings were buoyed by continued stability from our diversified offerings, particularly Consulting, complemented by Digital’.
In summary
The reality is that 2025 is unlikely to deliver a full rebound in executive hiring. But firms that expand beyond pure search, into advisory, interim, intelligence, and outsourcing, will not just survive the volatility, they’ll become indispensable partners.
In today’s environment, clients don’t just need recruiters, they need holistic talent partners. The firms that embrace this shift will build deeper, richer client relationships, more predictable revenue, and a more resilient business model.
In the new era of executive search, adaptability is the ultimate competitive advantage.