The Pitfalls of Contingency Recruiting: Why You Should Avoid It!

“We don’t work exclusively with recruiters.”

“Why should I limit myself to one recruiter, when I can have three or four agencies bring me more candidates?”

I was on a business development call today (yes – on the phone, can you believe it???) and the CRO I was talking to (nice guy, BTW in case he’s reading this!) was surprised when I suggested he work with us exclusively.

In a future post – maybe tomorrow – I will explain why I believe contingency recruitment is KILLING the technology sector, but for now, let me explain – as a 25 year veteran recruiting in the tech space – why using contingency recruiters is killing your business. TLDR Spoiler: contingency recruiters prioritize speed over quality. Their success depends on being the quickest to find and submit candidates, rather than focusing on delivering exceptional service… and despite you paying their bill, they don’t work for you, they work for the candidates!

Here are the main reasons why relying on contingency recruiters is detrimental to your hiring process and - by extension - your business:

1. Speed vs. Quality: Recruiting exceptional talent takes time. It involves identifying ideal candidates who are currently employed and satisfied in their roles, engaging with them, and persuading them to consider your opportunity as a progressive step in their career. Contingency recruiters, focused on speed, are not equipped to invest the necessary time and effort required to secure the best candidates. Imagine hiring three architects to design your dream house, but only paying the one who submitted the plans to you first... would you really get anyone's best work? If you hire multiple agencies to fill your role and will only pay the one who gets the candidate submitted first, you are ruling out any chance of getting those genuine rock stars that are happily employed elsewhere - because you aren't giving your recruiters the time they need to find, reach out and convince them to talk to you.

2. Limited Attention and Resources: Due to the competitive nature of contingency recruiting, recruiters typically close only one out of every three searches they work on. This means that approximately 70% of the time, they are working without compensation. As a result, their time, attention, and resources are spread thin, leaving you with less than the full commitment you deserve.

3. Lack of Exclusivity: Since contingency recruiters are not exclusive to you, they are not solely focused on your needs. Candidates introduced to you may also be presented to other companies, including your competitors. This dilutes the exclusivity of the hiring process and makes your hiring process look unprofessional to candidates, which increases the chances of losing top talent to your competitors.

4. Misaligned Interests: While you may be paying the recruiter's invoice, their primary allegiance is to their candidates, not your company. It is unlikely for a contingency recruiter to advise against hiring one of their candidates since their success is tied to placements, not long-term outcomes for your organization.

Here’s why you should opt for a more effective approach to hiring that ensures quality and long-term success:

? Retained Search: Embrace the benefits of retained search services. With retained search, you gain a dedicated team of experts who commit their full attention, resources, and expertise to finding the perfect candidates for your organization.

? Specialization: Choose a recruitment partner specializing in your industry and specific roles. Their deep knowledge and experience in your field enable them to understand your unique requirements and source candidates who possess the necessary skills and cultural fit.

? Exclusive Partnership: By partnering exclusively with a retained search firm, you secure a focused and dedicated search process tailored to your organization's needs. This minimizes the risk of losing top talent to competitors and ensures your company's interests remain at the forefront.

BUT – aren’t you limiting the number of candidates if you work with one company?

No. You are not.

If any recruiter tells you they have “the best candidates” their pants are on fire. Every recruiter has access to the same candidates as every other recruiter. They all have access to exactly the same database. Clue: you’re on it right now. The differentiator is the process they follow to find, connect with, filter and screen candidates, and to sell your job to them.

Every recruiter has access to the same candidates which means if you have three recruiters working on the same job, a significant proportion of your target candidates will be spoken to by at least two different recruiters. Put this in reverse… when you were hired by your company, didn’t you want the recruiter who was representing you to have the inside track, to be a trusted advisor to the company and to you?

Candidates – particularly A Grade rock star candidates can smell commoditized recruiters a mile off. They won’t take them – or you – seriously, and as a result you will lose any influence that a trusted third party can provide throughout the process.

You won’t know if they have other opportunities in play, where your job stacks up against the others they have, what wiggle room there may be in salary negotiations… you give up so much by not having a trusted, exclusive partner… for what? The slim chance that a second (or third) recruiter may have a resume or two to toss into the mix?

If you give ONE recruiter the time to conduct a thorough search, it won’t be necessary – they will have already provided three or four choices of an ideal candidate.

By avoiding the pitfalls of contingency recruiting and opting for a retained search approach, you unlock access to top-quality candidates who align with your company's goals, culture, and long-term success. Invest in a recruitment strategy that prioritizes quality, dedication, and tailored solutions for your hiring needs.

If you are looking for top talent within the cybersecurity sector and want to hire the best fit for your business, we can help you.

But aren't exclusive agencies expensive?

I can't speak for anyone else, but using Salisi won't cost you any more than using a contingency recruiter, and we can guarantee significantly better results! Reach out to me via LinkedIn, or email me [email protected] and let's talk!

#Recruitment #HiringStrategy #RetainedSearch #TalentAcquisition #QualityOverSpeed #BusinessSuccess