Greetings,
The good news is , you are out of the woods. You had identified the problem and acted on it. Now what lies ahead is to build the culture from ground up. Let's take one step at a time and solve your talent situation first. How many recruiters do you need to hire to meet the target of your projects? Identify the minimum number or the key roles and fill them fast.
Are your ex-employees aware of you firing the Mid-level Manager? Have you considered re-hiring them? They have already worked in the system, hence know. the processes. Hence, communicate with them on the changes that you brought about, as it had affected them and the organisation. Do your best to win their confidence. Even if you have to pay them a little more, hire them. You would be saving on the cost of hiring new talents and training them. Not to mention the time you would be able to save in the process!
If they are not willing to join you, consider calling them for a meeting and seek referrals from them. Any amount of brand building with them, will go a long way for you.
Your next option is to hire part-time employees. Since you are into the placement sector, consider hiring experienced Mothers who are on sabbatical, to take care of their child. Offer them target oriented projects with Work-From-Home facility. This would bring you the best talent who would be more than keen to work with you. They would offer you stability as they are least likely to job hop. I speak from experience, they are lot more focussed as they have a defined timeline for work and family. They can even offer you early joining option. Design the project on task and target basis so that it remain fair for both, them and you.
Stay focussed on creating a work environment which brings every employee closest to the Organisational Vision. Suppose you want to be the top placement firm in the IT Sector offering best of the league of Android Developers. Hire the recruiters who wants to become an ace in hiring Android Developer. Talk to the candidates in depth why they want to become so? Understand what drives them to their goals.
Building a team takes time. Invest in it. Your business may need volume, but its the number of capable of employees who will actually deliver the work. Aim to hire one capable talent a month , but make sure you are hiring the right fit. Even if they attrite for better brands, role or pay, you will still build a strong team, till they stay. Offer them a respectful exit when they leave. Any employer can offer money and work, not every one will offer respect. Create your own talent experience.
Wish you all the best !