THE BRUTAL TRUTH #38

Welcome to the #38 edition of The Brutal Truth. In this edition, I am covering one question that has been asked repeatedly over the last six months. So, let's hit the nail on the head.

The Pitfall of Multi-Agency Recruitment: Why Exclusivity Delivers Better Talent.

In today's fast-paced, highly competitive recruitment industry, where candidates are very short on the ground, many clients still believe that assigning roles to multiple recruitment agencies will result in higher-quality candidates and faster placements. This approach, rooted in the idea that competition between agencies will drive better results, often backfires. While it may seem like a strategy to broaden the talent pool, it ultimately risks diluting the quality of candidates and the focus of the recruitment process.

Working with clients who insist on this multi-agency model presents a challenge for recruitment agencies that pride themselves on honesty and integrity. Here's why agencies should openly argue against this approach and explain why exclusivity is in their client's best interest.

Quality Over Quantity: The Candidate Experience Matters

In a multi-agency environment, the race to find candidates becomes just that, a race. Agencies are often incentivised to deliver candidates quickly rather than thoughtfully. In contrast, top-tier agencies that work exclusively with their clients have the time and capacity to delve deeper into the market, identifying not just the best candidates "on the market" but the best talent "in the market". You know the candidates who may not be actively searching but are open to the right opportunity, the passive marketplace.

When clients partner with multiple agencies, the focus shifts to volume rather than precision. Good candidates, who are already in high demand, tend to shy away from scattergun approaches where they feel like just another number. An exclusive recruitment partnership allows for a more targeted, refined process that respects candidates' time and creates a more positive experience, reflecting well on the employer brand.

Exclusivity Fosters Trust and Commitment

Agencies that operate exclusively invest more time and resources into understanding their clients' culture, long-term goals, and the nuances of each role. When clients work with a single, dedicated agency, they become true partners in the recruitment process. The agency isn't just filling positions—it's invested in the long-term success of the client's business and its reputation in the market.

In a multi-agency scenario, trust can erode. Agencies may become less invested, knowing they are competing for the same prize and might fail. This can lead to less commitment to understanding the finer details of the roles and less enthusiasm for putting in the time needed to attract top talent. Exclusive agencies, on the other hand, are deeply aligned with their client's vision and are committed to finding the right fit, not just the fastest available candidate.

The Hidden Costs of Competition

While clients may believe that engaging multiple agencies will drive down costs through competition, the reality is often the opposite. When multiple agencies work on the same roles, they may be more likely to flood the client with candidates to stay ahead of their competitors. This can lead to an overwhelming number of CVs, many of which may not be the right fit, creating additional work for the hiring manager.

Moreover, the vetting process can become rushed in the race to submit candidates quickly. Quality agencies that take the time to properly assess each candidate may lose out to those who push volume over thoroughness. This increases the risk of hiring mistakes, which can cost far more in the long run than the fees associated with working exclusively with a top-tier agency.

The Best Talent Isn't Always on the Market

One of the most compelling arguments against using multiple agencies is the distinction between the best candidates on the market and the best candidates in the market. The best candidates are only sometimes actively looking for jobs. They may be happily employed and open to moving only if the right opportunity presents itself.

Agencies with a deep understanding of their client's business, culture, and long-term needs are better positioned to tap into this hidden talent pool. These candidates require a careful, relationship-driven approach that's impossible when recruitment agencies compete against each other. Exclusive agencies have the time to build trust with passive candidates, encouraging them to consider a move they wouldn't have otherwise.

Why Honest Agencies Should Push Back

The multi-agency approach poses an ethical dilemma for agencies that are committed to being honest and transparent with their clients. While it can be tempting to accept roles under this model, doing so may undermine the agency's ability to deliver the best results.

The most honest recruitment agencies understand that they can only provide exceptional service when they are fully committed and have the exclusivity they need to work at their best. Clients may initially resist this argument, but honest agencies must explain the risks of multi-agency recruitment. The conversation should focus on long-term value, emphasising that recruitment is more than just filling a vacancy—finding the right talent to drive the business forward.

Deep relationships

When does a client give multi-agencies their roles? Generally, they provide the role when the clients need the position filled. In reality, if the attrition rate of the UK is at about 20%, that means only 20% of roles are unplanned. The client has planned the rest but has not got a deep enough relationship with the recruiter to give them the plan; now, that is madness. The client only presents the role to the multi-agency suppliers at the last minute, where top-tier agencies will have been made aware of the client's plans for a minimum of three months in advance, but generally, twelve months in advance, meaning the top-tier agencies get the opportunity to create a world-class candidate pool, delivering the best candidates in the market, not the top of those on the market.

Exclusivity is a Partnership, Not a Transaction

Recruitment agencies who advocate for exclusivity are asking for something other than an easier ride; they are asking for the trust and partnership necessary to deliver the best possible service. When clients insist on multi-agency arrangements, they risk sacrificing the quality of candidates for speed and volume. The best recruitment agencies that genuinely add value are those who work with clients exclusively, fostering long-term partnerships built on trust, commitment, and a shared goal of attracting the best talent in the market.

The choice for clients seeking top-tier talent is clear: exclusivity breeds quality. For recruitment agencies that pride themselves on being honest and transparent, it's essential to communicate this truth and advocate for a recruitment process that benefits everyone—clients, candidates, and agencies alike.

So, the big questions all recruitment agencies need to ask are: "How do you increase your fill rate and profitability? Have you got the steel to be that open and walk away? Are you being honest with yourself?" Do you need to improve your client strategy?

If you can answer those questions, you will increase your fill rate, become more profitable, reduce costs, and, most of all, de-stress the process.

For help on this subject contact Jump Advisory Group