When it is used
- Permanent and specialist roles.
- Hard-to-fill or scarce skills.
- Limited in-house sourcing capacity.
- Senior or confidential searches (retained).
Advantages
- Access to specialist sourcing reach.
- Time saved on sourcing and screening.
- Direct employment of the hire.
- Market knowledge for scarce roles.
Limitations
- Placement fees on hire.
- Variable quality between agencies.
- Less control over the early funnel.
- Dependence on a good brief.
Governance considerations
- Define scope, roles and decision rights.
- Agree SLAs and a review cadence.
- Confirm data ownership and lawful handling.
- Agree commercial terms and exit/transition.
Decision framework
- Match the model to role difficulty, volume and timeline.
- Weigh control versus flexibility for your context.
- Consider in-house capacity honestly.
- Consider a blended model across needs.
- Pilot where possible before committing.
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