Recruitment in 2026: Key Takeaways from the TRN Huddle.

Recently, Lauren Fennell and Dan Benson attended the TRN Huddle. They joined industry leaders to discuss the current state of the market and, more importantly, predict where we are heading for the remainder of 2026. From the undeniable dominance of AI to the shifting sands of employment law, here is what you need to know about the future of recruitment.

Economic Uncertainty and Hiring Caution

The prevailing theme of the Huddle was the ongoing influence of political and economic instability. These factors are feeding directly into hiring decisions, creating a climate of caution. While unemployment levels are not expected to remain at their current historic lows, the market is not crashing; it’s changing.
We are seeing a distinct split in sector resilience. The consensus from the event suggests that blue-collar and operational roles will continue to hold up well. These positions remain essential to keeping infrastructure and logistics moving. Conversely, white-collar recruitment may see reduced demand for some time.

Clients are reacting to this uncertainty by holding back on long-term commitments. There is noticeable hesitation around signing off on long contracts or high-salary permanent hires. Furthermore, upcoming changes in employment law, specifically around Joint Several Liability, are expected to significantly impact businesses to structure their workforce. Agencies need to prepare clients who are more risk-averse and compliance-focused than ever before.

Technology: Why AI Integration is the New Essential

Technology took centre stage at the Huddle, but the conversation has matured. It is no longer about “digital transformation” as a buzzword. The message was stark: AI is no longer optional for recruiters, it is a “must-have”.

However, the focus has shifted away from the fear that robots will replace recruiters. Instead, the industry is waking up to the reality that technology’s primary role is to remove the manual, administrative drudgery from the process. This benefits everyone, especially the candidate.

Attendees expressed a strong view that candidates are generally happy to interact with AI agents if it yields a tangible benefit. If an AI tool means their application is processed faster and they receive clearer communication, the feedback is positive.

The participants also noted a shift in the software landscape. The era of simply collecting login credentials for disjointed SaaS platforms is over. Having a bloated tech stack is not a strategy; systems must truly add value. If a platform is just another place to log in without driving efficiency or improving the experience for both clients and candidates, it has no place in a modern agency. In 2026, the winner isn’t the one with the most software, but the one with the best-integrated AI workflow.

Moving Beyond the Transactional Model

How do agencies build, grow, and generate profit in this new landscape? The Huddle discussions made it clear that the traditional model of “spot business”, just filling roles as they come in, is becoming less sustainable.

Agencies are actively trying to move away from transactional recruitment to build longer-term, more valuable relationships with clients. Speakers highlighted retained and RPO-style (Recruitment Process Outsourcing) models as the path forward.

This links directly back to the technology conversation. By using AI to handle the heavy lifting of administration and processing, recruiters can free up their time to do what humans do best: build relationships. Shifting to these models creates more revenue consistency, protects margins, and makes the job more sustainable for consultants who are currently burning out.

The Reality of International Expansion

Diversification is often touted as a safety net for agencies during domestic slowdowns. Naturally, the topic of expanding into international markets arose. While many see global expansion as a viable way to diversify revenue streams, the Huddle provided a reality check.

Going global is not a “quick fix” or an easy option to instantly increase revenue. The operational challenges are significant. The primary hurdles identified were local employment laws and strict compliance requirements. The feeling in the room was that international expansion can work, but only if executed with rigorous attention to detail. It is not a strategy to be taken lightly or done by halves.

The TRN Huddle provided a sober but optimistic roadmap for 2026. Lauren Fennell and Dan Benson returned with a clear message: the industry is becoming tougher, but the opportunities are there for those willing to adapt.

The winners in 2026 will not be the agencies with the most software or the biggest databases. They will be the ones who leverage AI to eliminate friction, pivot towards relationship-based commercial models like RPO, and navigate economic uncertainty with agility. The future belongs to recruiters who can combine high-tech efficiency with high-touch consultancy.

Get in touch to find out how Workwell Outsourcing can help your agency adapt and thrive in the changing recruitment landscape.