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In an M&A, acquiring a team is only the beginning. Keeping that talent intact and unlocking its value requires more than HR systems and welcome emails. It calls for a strategic rethink of staffing firms’ roles in the M&A lifecycle.1. Acqui-hiring is only half the battle: Acquiring intact, high-performing teams through M&A delivers instant capability, but retaining and integrating that talent is where the real challenge—and risk—lies.2. Staffing firms are essential, not optional: Traditional recruitment models fall short post-deal. Strategic staffing partners must evolve into talent continuity architects embedded before, during, and after the acquisition.3. Integration is human terrain: Internal HR can’t shoulder the emotional, cultural, and operational complexities of post-M&A on its own. Neutral, strategic staffing partners fill this gap by safeguarding trust, cohesion, and delivery continuity. Introduction “You Bought the Team. But Can You Keep It?” You can buy revenue. You can acquire IP. You can inherit client relationships.But if the real asset is people—their expertise, cohesion, and delivery rhythm—what happens after the ink dries? In high-stake merger and acquisition strategies, the prized acquisition isn’t a tech stack or a patent. It’s intact, delivery-ready teams: cybersecurity pods, engineering guilds, niche domain experts. Talent clusters that would take years to build are acquired in one stroke through acqui-hiring. But while finance and ops activate instantly post-deal, talent often lags: unintegrated, unaligned, and vulnerable in the broader merger and acquisition integration process. For the acquirer, the risk is quiet but real: How do you retain the people you just paid a premium for before the synergy leaks? For the acquiree, the questions are more existential: What happens to our teams, our leaders, our culture? Who protects what made us… us? This is where deals unravel quietly. And it’s exactly where strategic staffing partners—if brought in early—can make the difference. Not as resume-pushers, but as transition architects, capability retainers, and delivery stabilizers. When you don’t involve the right talent acquisition partner early, you risk attrition and loss of value creation. What Today’s Acquisitions Reveal About Talent Acquisition Strategy Let’s look at six recent acquisitions, not for the M&A theater, but for what they reveal about evolving merger and acquisition strategies. These are not about logos or empires. They are about velocity: a sharper talent acquisition strategy, delivery agility, and time-to-capability. Take Mitchell Martin’s acquisition of Omaha-based eMerging. This was not about national expansion; rather, it was a calculated play for the Midwest IT corridor, where overlooked talent pockets and proximity-driven models are rewriting service delivery. Further afield, capability-led plays are reshaping how firms scale. Infosys didn’t just enter Australia with The Missing Link; it acquired a full-spectrum cybersecurity operation—Red Team, GSOC, and all—embedded in one of the most talent-constrained markets. AtkinsRéalis’ $300 million stake in David Evans delivered a 25% surge in engineering talent in a single stroke, timed to catch the infrastructure wave sweeping U.S. transit and environmental sectors. Delivery agility is also driving regional reinforcements. DataArt’s move on ACL Tech added 500+ Latin American professionals with deep local know-how, embedding delivery muscle closer to clients while aligning with outcome-based engagement models. And some deals are about plugging in precision skills. AC Lion’s acquisition of Ampersand Talent Advisory brings immediate strength in creative and AI executive search: two areas where speed-to-match is everything. Meanwhile, Smartlinx’s buyout of healthcare VMS provider StafferLink aims to address long-term care staffing shortages through tighter tech integration. Six deals. Different sectors. One shared truth: Organizations aren’t just building talent anymore; they’re also shaping their talent acquisition strategy by buying it. The Silent Crisis: Why Strategic Staffing Partners Risk Being Sidelined The new math of M&A leaves strategic staffing firms on the margins. Capability is acquired whole. Roles disappear before they’re posted. Talent acquisition partners hear the new standard line: “We’ve got the team. We’re good.” Translation: You’re not part of the plan. But here’s the deeper problem: most staffing firms aren’t ready to be. Traditional models weren’t built for acqui-hiring environments. When the team is the value, no one’s asking for résumés: they’re asking for retention. Due diligence happens, but recruiters aren’t in the room. By the time culture clash or team attrition hits, it’s too late. Instead of expansion, org charts shrink, and overlapping roles are merged or cut. This isn’t a hiring moment, but a clarity moment. Insight, not headcount, is what’s needed. And then there’s culture. The unspoken deal-breaker. Teams used to startup speed and flat hierarchies are suddenly navigating layered bureaucracy. But this is not seen as a staffing issue; it is seen as an HR one. And that’s the gap. Most agencies don’t have the muscle for post-M&A: no integration advisory, no morale mapping, no risk analytics. Worse, they’re still reporting time-to-fill while clients are trying to predict time-to-flight. What’s the biggest risk? Becoming “the vendor we’ll call after things settle.” But by then, the value has already started to erode. Why Staffing Partners Still Matter—Even When Talent Comes with the Acqui-hiring Deal Here’s the question in talent hunting no one asks until the cracks show: If the talent came with the deal through acqui-hiring, do you still need a talent acquisition partner? Yes, because: Acqui-hiring can transfer talent, but it can’t translate it. It doesn’t preempt misalignment or uncover hidden risks. And it doesn’t build cohesion between two operating rhythms, something only a strategic talent acquisition partner, aligned with a modern workforce strategy, can enable. That’s where staffing firms come in, not as résumé vendors, but as transition architects, cohesion builders, and strategic advisors who understand both business imperatives and people dynamics. Acquisition is only half the equation. The other half is keeping the value intact—and unlocking it. This is the inflection point. Staffing partners can either wait for post-deal requisitions, or step in early as the talent acquisition partner the deal actually needs: one that protects value and secures the future workforce. From Talent Vendors to Value Architects: The Strategic Role of Staffing Partners in Acqui-Hiring Acqui-hiring isn’t a transaction, but a transformation. In this shift, both

This blog explores how recruitment is being redefined mid-2025—not by surface-level trends, but by deeper structural shifts. What are the pivotal dynamics leaders must understand? 1. Recruitment is becoming a mirror of economic reality.Hiring activity now directly reflects macroeconomic shifts—particularly those triggered by trade and policy changes. Staffing is no longer a lagging indicator, but a live signal of how companies are recalibrating their strategies under pressure.2. The value in recruitment is shifting from access to alignment.In an environment of cautious hiring and evolving workforce expectations, it’s no longer about who you can reach—it’s about how well you understand both sides. The firms that succeed will be those that can translate complexity into clarity for both clients and candidates.3. Staffing firms must lead, not follow, the next evolution of work.From skills-first hiring to platform-native recruitment and inclusive pipelines, firms that redesign their role—from talent suppliers to strategic talent partners—will define the next normal in a labor market that rewards adaptability, trust, and precision. Introduction Midway through 2025, it’s clear we’re not operating in a familiar economy, nor a familiar labor market. The rules have shifted. What began as scattered uncertainty has hardened into structure: cautious hiring, rising costs, and recalibrated expectations from both employers and talent. And the forces behind these changes aren’t speculative anymore. They’re quantifiable, shaped by evolving labor market trends, the growing influence of skills-based hiring, and the tariff impact on employment that’s reshaping workforce planning across sectors. The Budget Lab’s State of US Tariffs report shows that U.S. tariffs have surged to an average effective rate of 28%—the highest in over a century. That alone might be abstract if not for its real-world effects: shoe prices are up 87%, apparel by 65%, and households are losing nearly $5,000 in annual purchasing power. Businesses are absorbing a GDP contraction, workers are facing 770,000 fewer jobs, and we’re watching wage pressure mount in industries that were booming just a year ago. As the President of a staffing firm, I don’t see this as crisis: I see it as a clarifying moment. A moment where the noise quiets, the trendlines settle, and we gain a sharper view of what comes next. Recruitment has always been a lagging indicator of macroeconomic change. But this year, it’s a real-time reflection of shifting labor market trends and how evolving strategies, like skills-based hiring and the growing use of digital assessment tools for recruitment, are taking center stage. This blog is our midpoint reflection, not to recap the obvious, but to articulate what the numbers are showing us: that recruitment in 2025 is being reshaped by five defining shifts. We’re here to trace them, understand them, and ask what they demand from staffing firms like ours and from leaders like you. Background: Two Realities Shaping Labor Market Trends At midyear, two narratives are shaping the labor market: one driven by macroeconomic headwinds, the other by internal organizational recalibration. Together, they explain why staffing firms are navigating both slowed demand and shifting expectations. From a policy and trade perspective, 2025 has already delivered significant disruption. The cumulative effects of tariff expansions and foreign retaliation are reshaping business conditions, consumer behavior, and hiring sentiment. We’re seeing wage sensitivity increase, talent pipelines narrow, and certain sectors, especially goods-heavy ones, retreat from aggressive recruitment. The labor market is adjusting not just to inflationary pressure, but to a broader atmosphere of cost control, uncertainty, and caution in workforce planning. Within organizations, a parallel tension is unfolding. According to Deloitte’s 2025 Global Human Capital Trends report, 85% of executives say their top priority is making their organizations more agile, while 75% of workers are looking for greater stability and clarity in how they work. That gap isn’t just cultural; it’s operational. It affects how teams are staffed, how roles are defined, and how recruitment is positioned. Deloitte talks about “stagility”—the challenge and opportunity of balancing speed with security. But while 72% of organizations recognize the need to strike this balance, only 39% are actively addressing it. This isn’t due to lack of intent; rather, it’s a sign of how hard it is to lead through paradox. Staffing firms are now at the intersection of these contradictions. We’re not just matching talent to openings; in fact, we are interpreting signals from both sides of the equation. In this environment, recruiters must become translators: of risk, of skill, and of what both employers and candidates are truly optimizing for in 2025. Five Shifts Defining Recruitment in Mid-2025: Skills-Based Hiring, Tariff Pressures, Digital Platforms, Inclusive Strategies, and Referral-Driven Sourcing The dual realities discussed above are actively reshaping recruitment. Grounded in recent industry conversations and discussions, we now discuss 5 defining trends that are emerging in response to tariff-driven caution and the demand for agile, human-centric workforces. The following analysis explores what these shifts mean for staffing firms. A. Precision Over Pedigree: The Rise of Skills-based Hiring Halfway through 2025, precision hiring is a talent strategy imperative. In a market shaped by economic caution and talent scarcity, staffing firms are replacing outdated proxies like degrees and résumé length with tools that assess verified, job-ready skills. Especially in high-demand fields like technology and healthcare, where specializations such as AI programming, cloud computing, or clinical diagnostics are mission-critical, this shift is becoming essential. Industry leaders are championing this transformation. SEEK Pass, for instance, has emerged as a benchmark for credential verification, enabling recruiters and hiring managers to navigate “candidate abundance” by filtering based on demonstrable skills. Advocacy for skills-based hiring frameworks that prioritize real-world readiness over educational pedigree is increasing. Recruitment teams are reporting notable results. Skills assessments are accelerating hiring by up to 40% in technical roles, particularly where bootcamp graduates are outperforming degree-holders, backed by verifiable portfolios and performance-based evaluations. In healthcare, recruiters are deploying clinical simulations to confirm diagnostic competency before placement, significantly reducing mis-hires in sensitive roles. Recent industry discussions also highlight a rising preference among tech firms for candidates who have validated skills in Python, cloud architecture, or data

As the global trade dynamics reset against the backdrop of tariffs, what could be the tariff impact on small business, particularly small business hiring – let’s find out. 1. Tariffs Are Reshaping the Hiring Equation for SMBsWith tariff exposure set to rise nearly 9x (PwC, March 2025), small businesses face a compressed margin environment where traditional small business hiring models no longer apply. Cash flow constraints, unpredictable supplier costs, and tariff-driven workforce planningare no longer future threats—they’re current-state realities.2. Innovation Is No Longer Optional—It’s OperationalTo stay competitive, SMBs must move beyond conventional playbooks. The report introduces seven actionable innovative hiring strategies for small business—from tariff-offset skill bartering to micro-credential job sculpting—each tailored to tackle volatility without compromising growth or workforce resilience strategies.3. In a Global Storm, Local Strategy WinsAs highlighted in recent Yahoo and Reuters coverage, tariffs are more than fiscal tools—they’re structural disruptors. Small businesses can’t wait for clarity. Flexible workforce strategies for SMBs must be embedded within tariff-driven workforce planning before cost shocks erode agility. From Policy to Paycheck What happens when every product that crosses a border suddenly costs more—but the small business hiring budget doesn’t budge an inch? When the price of doing business climbs overnight, yet you’re still expected to attract, hire, and retain the best talent out there? This is the new calculus facing employers today. A sweeping reset of global trade dynamics has kicked off, introducing across-the-board import tariffs that are shaking markets, reshaping margins, and rewriting what it means to grow a business in 2025. While economists debate the macro, small businesses are already living the micro: grappling with price volatility, second-guessing hiring plans, and trying to find the fine line between adaptability and survival. The rules of engagement have changed—but no one’s handing out a playbook. A New Cost Reality: When Tariffs Rewrite the Talent Equation in Small Business Hiring According to PwC’s March 2025 industry analysis, the latest wave of U.S. tariffs is projected to increase total annual tariff exposure from $76 billion to a staggering $697 billion—a ninefold jump that few industries are structurally prepared for. This isn’t a slow bleed. It’s a cost shock hitting simultaneously across sectors like automotive, electronics, pharmaceuticals, and retail—industries that not only rely on global inputs but also employ millions. As supplier costs climb and margin cushions erode, many companies are rethinking capital investments—including those tied to workforce growth. That pressure is already surfacing in the data. As cited in a March 2025 Forbes article, Goldman Sachs revised its 2025 GDP growth forecast downward—from 2.4% to 1.7%—noting that “trade policy assumptions have become considerably more adverse.” The bank also warned that tariffs could “raise consumer prices and tighten financial conditions, while leading companies to delay investments.” J.P. Morgan’s David Kelly echoed this sentiment, stating that tariffs tend to “raise prices, slow economic growth, cut profits, increase unemployment,” and diminish productivity. These aren’t abstract risks—they’re operational flags for hiring managers and CFOs navigating an increasingly volatile planning cycle. Small and medium businesses or SMBs, in particular, face a uniquely fragile set of circumstances. Forbes reports that many SMB leaders are already reworking supply chains, adjusting pricing models, and reassessing their workforce needs in light of rising tariff-driven costs. Unlike larger enterprises, smaller firms often lack the flexibility to hedge against price volatility or absorb operating shocks over time. The small business cost management hiring decisions are often tied directly to immediate cash flow and cost control—meaning even slight fluctuations upstream can stall job creation downstream. According to a March 2025 article published by the U.S. Chamber of Commerce, small firms across sectors are grappling with the triple threat of volatile supplier pricing, order commitments made months in advance, and downstream customer resistance to higher prices. Many are stuck absorbing tariff-linked increases on goods already sold, forced to fulfill contracts based on outdated cost assumptions. At the same time, rising input costs—layered over existing inflation and supply chain strain—are putting competitiveness under pressure. Owners report delaying investments, shelving marketing budgets, and bracing for erosion in both revenue and customer loyalty. Tariffs may be temporary by design, but their ripple effects are distorting long-term growth calculations in very permanent ways. One of the clearest signals of this pressure is already visible in the workforce. Hiring is among the first areas small businesses are pulling back, with many reconsidering recruitment plans or pausing new hires entirely. When rising input costs can’t be passed on to customers—and when even suppliers and partners are forced to share the burden—headcount becomes the most flexible lever to manage cash flow. Budget reallocation away from staffing, expansion, and employee development is already underway, particularly among businesses facing tariff exposure on raw materials, components, or globally sourced inventory. In this kind of environment, hiring is no longer just about filling a role—it’s about managing economic risk. And that means fewer bets, more caution, and a widening gap between business ambition and workforce reality. This leads to an important realization: In an economic environment defined by speed, scale, and uncertainty, the future of small business hiring may depend less on talent availability—and more on a company’s ability to stay resilient. Firms that can adapt their workforce models, respond to shifting cost pressures, and still attract top talent despite external volatility may be the ones best positioned to lead through whatever comes next. Tariff-Tested, Talent-Proven: 7 Small Business Hiring Strategies for Volatility With tariffs reshaping small business hiring, SMBs don’t need reactivity—they need reengineering. Below are seven distinct strategies, grouped by the type of challenge they solve: A. Redefining Value: Compensation & Role Innovation 1. Strategic Compensation Reimagined: Tariff-Offset Skill BarteringWhen tariffs drive up operating costs overnight, small and medium businesses can’t always compete on salary—but that doesn’t mean they’re out of the small business hiring game. One path forward is to reconfigure the value itself. By targeting candidates who bring both operational capabilities and trade-relevant knowledge—like cross-border documentation, landed cost modeling, or alternative sourcing—they can effectively absorb tariff-related work without requiring an additional

In March 2025, a new 25% tariff on imported vehicles and parts forced companies like Stellantis to stop production at plants in Canada and Mexico and to lay off over 900 U.S. workers, marking a rapid shift in manufacturing setups. Major U.S. automaker shares, including those of General Motors and Ford, declined as investors reacted to rising production costs and supply chain adjustments caused by the tariffs. The adjustments and layoffs have generated a pool of experienced technicians, engineers, and production specialists that can be redirected to support increased domestic production. Recruiters are now essential in reassessing job roles and matching the surplus talent to new positions within U.S. production facilities, while coordinating training programs and internal reassignments to fill critical operational gaps. From Policy to Paycheck In late March 2025, President Trump’s tariff announcements sent immediate shockwaves throughout the automotive industry and beyond. With new 25% tariffs imposed on imported vehicles and automotive parts—effective from early April—major manufacturers have been forced to quickly adjust their operations.   For example, Stellantis reported that it had temporarily laid off more than 900 U.S. workers across five of its facilities while pausing production at plants in both Canada and Mexico. These significant operational moves, documented by Reuters and Business Insider in March and early April 2025, are a stark reminder that government policy changes can rapidly influence production lines and employment figures across multiple sectors.  This unfolding scenario is not limited to the automotive industry alone. The domino effect of these tariffs is evident in the stock market fluctuations, with U.S. automaker shares—such as those of General Motors and Ford—experiencing noticeable declines as investors digest the immediate cost increases and production reallocation challenges.   Analysts are warning that the heightened tariff rates and subsequent production changes could raise overall production costs, potentially translating into higher consumer prices while complicating supply chains that have relied on decades of near-tariff-free operations.  This post-tariff reality calls for a proactive strategy—one that matches the speed of policy shifts with tactical talent realignment to keep businesses competitive even when faced with adverse external economic pressures.  Tariffs Trigger Talent Surplus: A Pattern Worth Watching  Recent policy changes announced by President Trump in March 2025 have altered automotive production and employment strategies across North America. As companies adjust manufacturing plans under the weight of a 25% tariff on imported vehicles and parts, production cuts and temporary layoffs have become common.   Automakers such as General Motors and Ford also experienced operational shifts as they concentrated production domestically to offset tariff-induced costs.   This shift in operations has led to a surplus of experienced workers in the automotive sector. Rather than being viewed only as job losses, these layoffs represent a redistribution of talent that can be redirected to sectors currently experiencing demand. Industry executives have pointed out that while some companies are forced to cut costs, the delayed production in foreign facilities has freed up a pool of skilled workers.   These professionals include technicians, engineers, and production specialists who now possess hands-on experience with advanced automotive manufacturing techniques—a resource that recruiters and business leaders can tap to address emerging needs in clean-energy transport, advanced manufacturing, and even technology-focused roles within traditional industries.  Market analysts have noted that tariffs, by raising the cost per vehicle by several thousand dollars, pressurize manufacturers to rethink their production strategies. As companies adjust by shifting capacity from international facilities to U.S.-based operations, the resultant talent surplus offers an opportunity to realign the workforce to areas where domestic production is rising. This situation creates a fertile context for reassigning skills into new roles and adapting workforce planning strategies, as automotive talent becomes available for redeployment into second chance hiring programs and training initiatives aimed at supporting expanded domestic production.  Recruiters’ Role in Workforce Realignment The shifts in manufacturing due to the new tariffs have led to a surplus of skilled workers. Rather than a complete loss, the layoffs represent an opportunity to reposition talent. In March and April 2025, companies that previously relied on overseas facilities have reduced their workforces as production moves from foreign plants to domestic sites. This change creates a talent pool of professionals—including technicians, engineers, and production experts—with valuable experience in high-quality automotive manufacturing.  Recruiters are taking center stage by acting as architects of second chances. Their role now extends to matching these skilled workers with new positions that arise from shifts in production and operations. Recent insights from industry experts indicate that several U.S. automotive manufacturers have been forced to realign their workforce due to the tariff-driven production changes. This shift has been decades in the making. Bersin recalls how Jack Welch’s forced ranking at GE sparked an era of aggressive downsizing, followed by the rise of agile teams, two-pizza teams, and self-managed structures at companies like Amazon and Facebook. Today, leaner, flatter organizations are becoming the norm, with companies like Meta, Goldman Sachs, and Amazon eliminating redundant roles and restructuring teams to align with new business realities. However, as Bersin warns, workforce efficiency is not just about cutting jobs—it’s about restructuring wisely. The risk isn’t just overstaffing but also losing critical talent that could drive future growth. Recruiters, therefore, become crucial players in this equation. By focusing on strategic hiring, reskilling programs, and internal mobility, recruiters can help businesses restructure with foresight, ensuring they retain and attract the right talent for long-term success. In a market flooded with displaced professionals, smart recruiters have a choice: react to the global layoffs as a hiring rush or proactively help companies build sustainable, future-ready teams. The latter is where true value lies. Key points on the recruiters’ role in workforce realignment include:  Skill Redistribution:  Matchmaking and Reassignment:  Supporting Internal Adjustments:  Second-Chance Hiring Strategy:  What Smart Recruiters Should Be Asking Right Now?  As the tariff measures take effect and force companies to shift production and restructure operations, recruiters must ask pointed questions that drive new hiring strategies. Recent developments in March and April 2025 reveal that manufacturing adjustments have triggered a need to reexamine internal roles