From Chaos to Clarity: The Case for Exclusive Recruitment Partnerships
The recruitment industry often faces criticism for high fees, poor communication, and inadequately screened CVs. These issues are largely attributed to the contingency recruitment model, where multiple agencies compete to fill the same position. In this post, we’ll explore why moving away from this model can benefit your business.
The Multi-Agency Contingency Model
In a multi-agency contingency model, agencies typically have a 25% fill rate, meaning they need to register four vacancies to make one placement. This approach often turns recruitment into a numbers game, prioritising quantity over quality.
The model persists due to how employers purchase and agencies sell recruitment services. However, there is a straightforward solution: vet your recruitment partners carefully and choose one to deliver like any other professional service. You wouldn’t hire four accountants to compete over your accounts, so why do it with recruitment?
The Advantages of an Exclusive Recruitment Model
Building a True Partnership
An exclusive arrangement allows you to work closely with your recruitment partner. Instead of multiple agencies selling their candidates, a single recruiter can collaborate with you to find the best candidate. This approach fosters more honest discussions about each candidate’s strengths and weaknesses, improving the overall candidate experience.
Competitive Fee Arrangements
Multi-agency recruitment often leads to high fees, sometimes 25-30%, because recruiters are compensated for both successful and unsuccessful efforts. Exclusivity can significantly improve fill rates to over 90%, allowing recruiters to offer more competitive fees and dedicate more time to each assignment.
Commitment and Delivery
Exclusivity and/or retainers increase commitment from both sides. Recruiters can spend more time crafting quality advertisements and thoroughly screening candidates. This contrasts sharply with the rushed, volume-driven approach often seen in multi-agency models.
When you vet your recruitment partners, focus on their core skills. Are they true recruitment practitioners or skilled salespeople? The latter often results in poor delivery of your assignment by less experienced staff.
Conclusion
Exclusivity or retained arrangements in recruitment come down to mutual commitment. This approach, traditionally reserved for senior executive hires, is beneficial at all levels. Quality recruitment should be a priority for any business serious about finding the right talent.
An experienced recruitment partner such as The HR Guys will craft compelling job adverts, create a clear recruitment timeline, and provide well-rounded candidate shortlists. They will manage the offer and feedback process, ensuring a smooth transition for new hires.
By moving away from the multi-agency contingency model, you can improve the quality of your hires and enhance your overall recruitment process.
Check out how we structure our fees for HR Recruitment assignments
