Through countless interactions with candidates, clients, and members of the Alhambra International network, a recurring issue keeps surfacing: the strained and often ineffective relationships between companies and recruitment agencies. Whether you are an SME or a large company with an internal Talent Acquisition (TA) team, the recruitment process can often feel like an endless loop of frustration. Why is that?
Take, for instance, a recent conversation I had with a CEO of an SME in the Horeca sector. He entrusted a well-known global recruitment agency to help him find a Sales Executive for France. The agreement was clear—salary and bonus expectations were laid out, and the agency appeared confident. However, after eight months, the agency only presented two candidates. The CEO, constantly following up, was met with the same excuse: “The salary you’re offering is too low for the market.”
The CEO had already paid a deposit and was locked into an exclusivity clause with no time cap. His business had lost valuable time, and likely revenue, waiting for a candidate that never materialized. Sadly, this is not an isolated incident. Large recruitment firms often rely on volume and branding rather than putting real effort into every search. During my time managing recruitment agencies in a previous role, I uncovered hundreds of thousands in deposits paid for open roles that yielded no results.
So, how do you choose the right recruitment agency?
First and foremost, remember that you are the client, and the agency has a duty to meet your needs. When you present your expectations, the agency should advise you on realistic salary ranges, the availability of talent in your target sectors, and provide a clear timeline. If the agency isn’t offering these insights upfront, it’s a red flag.
The methodology matters too. Are they actively hunting candidates, or simply posting ads? The CEO in my example wasn’t even sure. This is a crucial distinction to make before signing a contract. Hunting requires a more tailored approach, while job ads cast a wider, less precise net.
Additionally, pay close attention to the contract. Many companies overlook clauses about exclusivity and penalties, and this can leave them trapped, as it did for the CEO I mentioned. Negotiate these terms, especially if you’re a SME, because poor recruitment practices will hurt your bottom line even more. You deserve to know who in the agency will be leading your search and ensure that this person understands and respects your brand, as they will be its representative to potential candidates.
Ask for references—an agency should be able to provide successful case studies in similar roles to the one you are recruiting for. If they can’t, be cautious.
For larger companies with in-house Talent Acquisition (TA) teams, the challenges are different but equally impactful.
In many cases, CEOs assume that the TA team is doing its job, and measuring the performance of recruitment efforts rarely enters their mind. HR departments are increasingly focused on compliance with labour laws and tax issues, leaving recruitment metrics on the back burner. But failing to monitor the effectiveness of your internal recruitment processes can have just as damaging an impact on your company as external agencies failing to deliver.
Some TA executives are responsible for filling more than 30 positions at once, leading to the same volume-driven approach seen with external agencies. This can result in costly mistakes, as the pressure to fill positions quickly may lead to poor candidate selection.
The issue also stems from the fact that while companies invest heavily in recruitment technologies—such as ATS systems, employer branding tools, AI, chatbots, video interviews, personality tests, and onboarding platforms—the return on these investments is often unclear. Many CEOs are unaware of the effectiveness of these tools or whether they are truly improving the recruitment process. Ask a CEO about his sales performance metrics, and he will know the answer. But ask him about the performance of his recruitment team, and you will often get a blank stare.
With everyone focused on generating revenue in a challenging global economy, recruitment often becomes the ‘forgotten cog in the company machine.’ But, make no mistake: hiring the wrong people, or leaving key positions vacant, can derail your business goals just as much as a missed sales target.
Final Thoughts
Whether you are an SME or a large organization, the effectiveness of your recruitment strategy—whether through an agency or an internal team—should never be an afterthought, but rather a top priority! Take control of the process by asking the right questions, negotiating terms, and measuring results. After all, recruitment is not just about filling positions; it’s about finding the right people who will drive your company forward and contribute to its long-term growth and success!
At Alhambra International, we offer recruitment audits to help companies assess and optimize their hiring processes. Our expert team provides guidance on refining internal strategies and ensuring businesses collaborate effectively with external recruitment partners. In today’s crowded market, with an increasing number of agencies and interim management solutions, we help companies navigate these complexities. Our goal is to ensure that your recruitment strategy is aligned with your business goals and contributes meaningfully to your success.
Founder & Leader