The Top 5 Challenges in Contingency Recruiting

If you're building a team, there are several challenges you can expect to encounter during the recruiting process. We are strong proponents of listening to our customers, we interviewed executives at tech startups in the Silicon Valley. All of them have engaged with contingency recruiters previously. We distilled their pain points down to five common hiring challenges (specifically as it relates to technical recruiting.) Here's what we found:

1. The "spray and pray" approach of contingency recruiting

A common theme across each CEO or executive was that they would receive hundreds of candidates, most of which were not a good fit for their roles. This is the "spray and pray" approach. Because contingency recruiters are commission-based, recruiters blast companies with a high volume of candidates hoping for a bite, rather than taking the time to review each resume carefully, making sure the candidate and company are actually a good fit.

2. Screening resumes is a huge time sink

Because recruiters are focused on high volume of resume send-outs, this results in a full inbox. Now, the company has to review hundreds of sub-par resumes, rather than a handful of quality resumes that match their needs with candidate needs. That results in far too much time spent screening candidates on the company's side, rather than the recruiter.

3. Lack of transparency and visibility into the process

Companies want to see where candidates are in the pipeline rather than trying to track candidates using one ATS, posting jobs somewhere else, and relying on email to communicate feedback on candidates/interviews. None of the executives we interviewed are using a single tool where all hiring actions are centralized. 

4. Coordinating interviews is a pain

Usually, a hiring decision isn't entirely up to one person. Sometimes, candidates have to move to several rounds of interviews with multiple people. There's no easy way of coordinating schedules with the team and candidate. Yet again, another time waster.

5. It's expensive

Companies usually pay anywhere from 20% - 30% first year's salary if they've engaged with a contingency recruiting firm. Usually, companies hire contingency recruiters when they have hard-to-fill roles that are mid-to-senior level. That means the salaries are higher than average, thus making the fees high as well. 

...But, it's not all bad

We have focused on the challenges of recruiting, however we recognize that there certainly is an upside to using external recruiters. What companies consider "good" recruiters are those who look beyond the job description. They take the time to understand the company in terms of what they do, what kind of culture they have, and what a "good fit" means for their team. Additionally, contingency recruiters that specialize in a specific niche become experts in their field, giving them an advantage over an internal recruiter who is considered more of a generalist. 

Considering how important finding the right talent is, the challenges of recruiting can make the process time-consuming, frustrating, and expensive. We believe we can eliminate all of the pains associated with recruiting, and provide companies with a single tool that will empower them to find the best candidates. When we say best candidates, we don't just mean the best-looking candidates on paper, but we mean the best candidates for their company. Our algorithm removes the manual process of matching resumes with job descriptions, and brings the value of what a "good recruiter" would provide – evaluating culture-fit, growth opportunities, and so on. That way, the end result is more time saved, less money spent, and companies and candidates who are both set up for mutual, long-term success. 

We'd love to hear your take on this topic – share your recruiting challenges with us, we're all ears!