Using Multiple Agents on a No Win No Fee Basis - From An Employers Perspective

I've posted previous articles about the candidate and recruiter experience, and how this affects the recruitment campaign - this article is more focused on the client side itself, though it still touches on how a multi-agency approach impacts on others in the process.

Contingent multi-agency recruitment—where multiple agencies compete to fill the same role on a "no win, no fee" basis—can be problematic for employers for several reasons:

1. Lack of Commitment from Agencies

Since agencies only get paid if they place a candidate, they prioritize roles where they have a higher chance of success. If a client uses multiple agencies, each agency may put in minimal effort, leading to a rushed, low-quality search.

2. Speed Over Quality

Recruiters in a multi-agency setup often race to submit candidates first, fearing their competitors will do so before them. This leads to:

• Lower vetting standards – Candidates may not be properly screened.
• Poor candidate experience – Candidates may receive multiple approaches for the same role, which can be incredibly frustrating and doesn't look good on either the agency or end client.
• Higher likelihood of misalignment – Agencies are less likely to take the time to deeply understand company culture or requirements.

3. Damage to the Employer Brand

If multiple recruiters are reaching out to the same candidates for the same role, it can make the company look desperate or disorganised. This can deter high-quality candidates who prefer a more professional recruitment process.

4. Limited Market Access

Good recruiters build relationships with passive candidates. In a multi-agency setup, agencies are less likely to leverage their best connections because they don’t want to risk putting in effort and not getting paid. This means clients may miss out on top-tier talent.

5. Administrative Headaches

• Duplicate candidate submissions lead to disputes over ownership, delaying hiring.
• Managing multiple agencies takes more time and effort for HR and hiring managers.

6. Higher Risk of Candidate Poaching

Some agencies might use the opportunity to market candidates elsewhere, including to competitors, or even try to poach the same candidate for another role later if the placement fee isn’t high enough.

7. No Long-Term Relationship Building

With retained or exclusive recruitment, an agency becomes a strategic partner, aligning closely with company goals and culture. Multi-agency contingency models discourage this, resulting in a transactional, short-term approach.

Bottom Line:

While contingent recruitment can work in some cases, engaging multiple agencies at once often leads to lower-quality hires, inefficiencies, and potential brand damage. A retained or exclusive search with a trusted agency is usually a better investment for critical hires.

Would you like advice on structuring a more effective hiring strategy?

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