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Danny Steel of Recruso on Resilience, Recruitment Tech & Surviving a Tough Market

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About this episode

Nitin speaks with Danny Steel, Founder & MD of Recruso, about leading a recruitment software business through one of the toughest markets in recent memory. Danny shares how a devastating house fire forced him to reprioritise family and business, and discusses the realities of retaining customers when growth slows and keeping agencies operational in 2025.

The conversation covers Recruso's 2026 roadmap, including a full open API, end-to-end Time & Attendance, payroll integration, and a dedicated perm product. They explore automation versus AI, margin pressure from umbrella and PAYE reforms, subscription revenue models, and how best-performing agencies operate differently in a flat market.

Danny and Nitin also address leadership challenges, compliance risks, client education over vacancy chasing, and practical advice for recruitment business owners navigating uncertainty. The episode emphasises that survival, stability and learning are meaningful wins in themselves.

Key takeaways

  • Most agencies should fix automation before pursuing AI—foundational processes matter more initially.
  • Upcoming umbrella and PAYE reforms create significant compliance and margin pressure that many agencies are underestimating.
  • Owning payroll functionality is becoming critical for recruitment software as regulatory changes reshape the sector.
  • Smaller clients often outperform big-name logos; agencies should focus on educating clients rather than chasing vacancies.
  • Survival and stability are legitimate business wins in flat or difficult markets.

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