Embrace Shared Hiring Risk: The Game-Changer for Employers

Hiring new personnel is always a lengthy and often risky process. Will the new candidate be a good fit, will they stay with the company, and do they have the right qualifications? There is no way to be 100% certain before you actually hire the new candidate, and they start working. This is what is called hiring risk, and there is no way to completely eliminate it, but it can be decreased.

Hiring risk is present regardless of whether you hire on your own or use a recruitment agency as the risk is associated whit having to start the process over again.

Working with traditional recruitment agencies often increase the risk as they come with substantial upfront investments and the constant fear of a wrong hire, resulting in lost investment and wasted resources. Hiring on your own ties up a lot of internal resources and bring up costs in time management as it often takes longer than working with an agency. Without the expertise of a devoted Talent Acquisition team, the risk of hiring a candidate that is not the right fit is also higher.

However, there’s a revolutionary solution that allows employers to hire with less fear, free from upfront investments, and with the assurance of candidate replacement if needed – this is Shared Hiring Risk.

In this article, we will explore how employers benefit significantly from this game-changing model.

Fearless Hiring

In the world of recruitment, fear of making a wrong hire can be paralyzing, making hiring a new candidate even more difficult. Using traditional recruitment agencies often comes with high costs regardless of if they find a good candidate or not. Hiring on your own takes up extensive resources and creates indirect costs for the company and can cause decreased productivity.

Shared hiring risk flips the script by spreading the risk across the employer and the recruitment agency. As a result, employers can engage in the hiring process with renewed confidence, knowing that they won’t bear the entire burden alone. The shared risk model fosters a collaborative environment where both parties are invested in finding the perfect candidate. It allows companies that previously have had to handle recruitment in-house to take part of Talent Acquisition from a devoted and trained team, without the economic risk and burden often associated with using an agency.

No Upfront Investment and no Sunk Cost

One of the most significant advantages TaaS or Talent as a Service is that employers no longer need to allocate substantial budgets upfront. Instead of committing to hefty fees before any tangible results, employers pay a reasonable monthly fee as the hiring process progresses, where the bulk of the payments happens after a new candidate has been hired.

This approach allows businesses to better manage their financial resources and allocate budgets more efficiently.

The shared risk structure aligns the interests of the employer and the recruitment agency, creating a win-win situation. This solution also shares the hiring risk between the agency and the employer as it allows more fearless hiring – if the candidate is not the right fit and the contract is terminated the payment is also stopped.

Ease of Hiring

Navigating the recruitment landscape can be a daunting task, especially when the fear of hiring the wrong candidate looms large. Shared hiring risk significantly eases the hiring process for employers and makes it more advantageous to work with a recruitment agency compared to hiring on your own.

The new TaaS payment structure removes the pressure to make quick decisions and provides ample time to assess potential candidates. This freedom fosters a more thorough and diligent selection process, resulting in higher-quality hires. This does not mean a lengthier hiring process, but rather a more accurate one focused on the right topics.

Assured Candidate Replacement:

No employer wants to face the disappointment of a hire not working out as expected. Shared hiring risk offers a safety net by offering candidate replacement if the initial match does not meet the requirements. This assurance provides peace of mind and reinforces the commitment of the recruitment agency to find the right candidate for the employer’s needs. The recruitment agency is no longer motivated by quickly finding a candidate – they want to find the right candidate.

However, as we mentioned in the beginning a failed hire can still happen, and now the recruitment agency has an incentive to help find a replacement, saving you time and resources.


Shared hiring risk is a paradigm shift in the recruitment industry, offering employers a host of benefits that traditional models fail to provide. The ability to hire without fear, avoid upfront investments, and eliminate irrecoverable costs, all while benefiting from an easier hiring process and a possible replacement, make shared hiring risk an undeniable advantage for employers.

Embracing this model not only transforms the way businesses recruit talent but also strengthens the employer-recruitment agency partnership, fostering a collaborative and successful hiring journey. So, are you ready to embrace shared hiring risk and unlock the full potential of your talent acquisition process?

Read more about TaaS here!


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