𝐑𝐞𝐭𝐚𝐢𝐧𝐞𝐫𝐬 (𝐰𝐢𝐭𝐡 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐢𝐭𝐲) 𝐨𝐫 𝐒𝐮𝐜𝐜𝐞𝐬𝐬 𝐅𝐞𝐞𝐬?

Recruiting top talent is challenging. Many companies work with external recruitment agencies, often choosing success-based fees without exclusivity, thinking it minimizes risk. However, this common strategy may not deliver the best results. This article explores why combining retainers with exclusivity can improve outcomes and how it compares to relying solely on success fees.

1. The Cost of Success Fees

On paper, success fees without exclusivity sound appealing: no placement, no payment. But agencies face high risks in this model, particularly when competing with multiple firms for the same role. To offset these risks, agencies charge higher fees to cover time spent on unsuccessful searches, which can inflate costs for clients over time.

“If we’re competing with 5 other agencies, we have to spread our resources thinner, and ultimately, we factor that risk into higher pricing,” shared a senior recruiter from a top European agency.

2. Less Time, Worse Results

When working with multiple agencies, companies often lack the bandwidth to provide detailed feedback or context to each. This lack of communication leads to misaligned searches, lower-quality candidates, and wasted time.

“Without clear guidance or regular feedback, even the best recruiters can’t deliver optimal results. Exclusivity gives us the chance to collaborate and refine our approach,” one agency manager explained.

3. Reduced Motivation for Agencies

Too much competition among agencies can demotivate them. Why invest significant time and effort into a role when the odds of success are slim? This lack of priority may lead you to believe the agency is underperforming when, in reality, the model itself is flawed.

4. Impact on Candidate Perception

Multiple agencies approaching candidates for the same role can harm your employer brand. It signals disorganization and may deter top talent. Worse, candidates already in your hiring process may lose confidence if they see new outreach for the same position.

What Should You Do Instead?

To improve recruitment outcomes:

1. Work with 1–2 trusted agencies. Research their track records or choose ones recommended by peers.
2. Offer exclusivity. A time-limited exclusive agreement ensures agencies prioritize your roles.
3. Consider retainers. Retainers provide a non-refundable advance, ensuring commitment and often lowering overall costs.

By combining retainers with exclusivity, you can secure top-tier service, negotiate better fees, and attract the best talent. Try it for your next search—you’ll notice the difference.