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Cut Costs, Not Corners: Addressing Contingency Recruitment's 80-90% Failure Rate

The Contingency Failure

In business planning, we understand that contingency plans are reactive measures designed to address unforeseen events—not comprehensive strategies for achieving goals. Yet paradoxically, when it comes to talent acquisition, many organisations continue to rely on contingency recruitment as their primary strategy, despite its inefficiency.

Industry data shows that the average contingency recruiter works on numerous vacancies simultaneously but only achieves a 10-20% fill rate—meaning 80-90% of the positions they work on never result in a successful placement. This staggering inefficiency reveals a fundamental flaw in the model.

This fundamental misalignment reveals why traditional recruitment often fails to deliver the best outcome: we're using a reactive approach to solve what is inherently a strategic challenge.

The Problem with Contingency Recruitment

Contingency recruitment, by definition, operates reactively. It typically activates only after a vacancy occurs, creating immediate pressure to fill positions quickly. This urgency often results in:

Firstly, candidates undergo only superficial evaluation focused primarily on skills and experience. Secondly, there is usually limited engagement with passive talent, who are often the most valuable. Thirdly, this approach can create significant misalignment between candidates and organisational culture. Finally, there is minimal consideration of team dynamics, behavioural fit and leadership compatibility.

According to recent Gallup research, only 32% of employees report feeling engaged at work, with poor job fit being a primary contributor to disengagement. This statistic alone should signal that our current approach is fundamentally flawed.

The Cost of the Status Quo

The Society for Human Resource Management (SHRM) estimates that replacing an employee can cost up to 200% of their annual salary. Beyond these direct costs, organisations suffer from several additional consequences:

The first issue is lost productivity during transition periods. This is followed by knowledge and relationship disruption throughout the organisation. Additionally, organisations experience declining team morale and damaged employer brand reputation. Perhaps most concerning is the opportunity cost from strategic initiatives left unpursued while dealing with recruitment challenges.

Despite these substantial costs, many organisations continue with contingency recruitment simply because "that's how it's always been done" or because alternatives seem prohibitively expensive.

Moving Beyond the Binary Choice

Until recently, organisations faced a seemingly binary choice:

Contingency recruitment: Fast but superficial, transaction-focused, and ultimately a high-risk, primitive approach that doesn't produce optimal results

Executive search: Thorough, effective but perceived as expensive and reserved only for senior appointments

This false dichotomy has prevented organisations from exploring more effective approaches that elevate talent acquisition to a higher level, a new way of thinking and a new way of working.

A New Paradigm: Holistic Strategic Talent Acquisition

Effective talent acquisition requires shifting mindset from reactive contingency to proactive strategy. This means:

👉 Treating recruitment as an ongoing strategic function rather than a transactional service

👉 Evaluating candidates across multiple elements beyond skills and experience

👉 Considering organisational context, team dynamics, and leadership compatibility

👉 Engaging with the market strategically, comprehensively with candidate attraction and engagement at the forefront

Ihon Holistic Hiring™: A Game-Changing Alternative

The Ihon Holistic Hiring™ Methodology offers a comprehensive framework that transforms recruitment from a reactive contingency plan to a strategic advantage. Here are some of the key aspects of this new methodology:

Co-creation: Is at the very heart of this method, pre- and post-hire. Shifting mindset from a B2B relationship to a B4B partnership, overcoming challenges together.

Agile Methodology: A flexible approach emphasising collaboration, continuous improvement, transparency and delivering ultimate value.

Low Cost, High Value: By design this method allows a fair pricing structure, based on shared risk and reward, focusing on retention, performance and impact to business.

Interconnected Assessment & Engagement: Using a blend of science, technology and human connection which considers the interconnected and interdependent elements of a successful employee placement.

The Economic Case for Strategic Talent Acquisition

Research demonstrates the substantial return on investment from holistic hiring approaches:

The evidence is compelling across multiple studies. Firstly, Deloitte research reveals organisations using multiple assessment tools experience an average 39% reduction in turnover rates.

Furthermore, Brandon Hall Group reports companies investing in improved candidate evaluation methods see a remarkable 70% improvement in quality of hire.

Additionally, McKinsey research indicates team dynamics account for up to 30% of company performance differences.

A New Economic Model: Shared Risk and Reward

Beyond methodology, what's needed is a new economic model that aligns incentives between organisations and talent acquisition partners. The Ihon Holistic Hiring™ approach introduces co-creative pricing based on shared risk and reward, creating:

The most immediate benefit is substantially lower upfront costs compared to traditional retained search methods. This is complemented by performance-based compensation tied to successful outcomes. The approach also creates naturally aligned interests between all stakeholders. Perhaps most significantly, it brings greater accessibility for mid-level positions and critical hires, not just executive roles.

Conclusion: From Contingency to Co-creation Strategy

The future of effective talent acquisition lies not in contingency plans but in strategic co-creating innovate frameworks. By reconceptualising recruitment as a strategic function with interconnected and interdependent elements, organisations can transform their approach to talent—moving from reactive contingency to proactive co-creating strategy.

The choice isn't between quick-but-superficial contingency recruitment and expensive executive search. The Ihon Holistic Hiring™ Agile Methodology demonstrates that a third path exists: strategic, holistic talent acquisition that delivers better outcomes for employers, candidates and recruiters through alignment of all key elements.

The organisations that thrive in the coming years will be those that recognise talent acquisition as a strategic, co-creation function requiring agile methodology, interconnected assessment and engagement—not merely a contingency plan to be activated when vacancies arise.

I would love to hear your thoughts on this new way of working that creates a whole new level within talent acquisition and development.

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