The 5 most common problems faced by external recruitment agencies (plus simple solutions)

YOONO insights on screen

The 5 most common problems faced by external recruitment agencies (plus simple solutions)

YOONO insights on screen

The 5 most common problems faced by external recruitment agencies (plus simple solutions)

YOONO insights on screen

External recruitment agencies live in a world where speed, accuracy, and candidate experience determine the success (or failure) of your business.

Yet the demands of the role often mean you’re juggling dozens of open positions, client expectations and candidate pipelines…all at the same time. We hear you—these are the common problems faced by agencies, but also some actionable solutions to face them confidently, as well.

Even the most seasoned headhunters hit bottlenecks that slow down placements or risk damaging client trust. Whether it’s application overload or dissatisfied clients, small issues can stack up and have a hugely detrimental impact on your business efficiency and reputation.

Four of the most common pain points for recruitment agencies are time constraints, quality vs quantity dilemmas, candidate experience challenges, information overload, and bias. Let’s break each one down, and explore how intelligent background checks might just be the hidden advantage that solves them.

1

Time constraints: Racing against the clock

1

Time constraints: Racing against the clock

2

Quality vs quantity: Avoiding the ‘scattergun’ approach

2

Quality vs quantity: Avoiding the ‘scattergun’ approach

3

Candidate experience challenges: Keeping it running smoothly

3

Candidate experience challenges: Keeping it running smoothly

4

Information overload: Drowning in data?

4

Information overload: Drowning in data?

5

Bias and compliancy

5

Bias and compliancy

1. Time constraints: Racing against the clock

How much time do you have in your working day? A standard 8 hours is quickly eaten up with admin tasks, responding to applications and scheduling interviews. Before you know it, the day is done, and your to-do list magically became even longer. Weird, no?

When you’re tasked with sourcing high-quality candidates quickly or at high-volume, there’s rarely enough time to dig deep into each profile. Manual research of a candidate’s work history, qualifications and references can eat up hours—even days—that could be put to more efficient use.

The solution: AI tools designed to assist and dig deeper

When it comes to time constraints, the new generation of AI tools for recruitment are invaluable investments. Time-consuming administrative tasks can be handed over to AI assistant software or the latest HR tech. Sync up your apps with the rest of your team to create a comprehensive workflow, using AI to pull disparate parts of your work together.

You can also use AI to quickly and effectively screen candidates, which is particularly useful for both early-stage screening and high-volume hiring. AI-powered background tools like YOONO automate the process of assessing employment history, qualifications and public records, while also giving you in-depth insights that could only be offered by an AI-centric platform.

So, instead of spending hours chasing paperwork, rethink the role of automation in your work process. The payoff could be significant, allowing you to focus on building relationships with clients and closing roles.

2. Quality vs quantity: Avoiding the ‘scattergun’ approach

Many recruiters face pressure to deliver a high volume of candidates, particularly for companies hiring at scale within a short period of time. As you no doubt already know through experience, speed can often be at the expense of quality.

And the risk is significant. Recommending a candidate who has scraped through a basic background check is not only ill-advised, it can have major repercussions down the line for your client and your own business reputation. Poor hires are incredibly common, with 85% of UK HR decision-makers admitting their organisation has made a bad hire over the past year, and the impact of poor hires costing UK businesses billions annually, according to a survey by the Recruitment & Employment Confederation (REC).

But how is it possible to strike the perfect balance between quantity and quality when the demands for quantity are often so great?

The solution: Culture shifts and candidate insights

It takes a brave recruitment agency to decide to shift their focus from quantity to quality alone. It means saying no, potentially taking on fewer clients, and risking a shrinking business in the short-term. If pitched correctly, however, the rewards can be significant.

High-level hires targeted by headhunters or specialist agencies can result in significant commissions, but you may need to change the brand and culture of your recruitment agency to attract the kind of clients and talent that will lift you into the top quality tier. It’s definitely possible, and in the right market and sectors many agencies find that this quality-first, exclusive approach works in their favour. Why not dip a toe and test the waters?

To ensure that the candidates you’re referring really are the A-players, you’ll need to use an ironclad background screening process, ideally consisting of a combination of DBS checks, Right to Work checks and more in-depth background research. AI-powered background screening is again another advantage in this respect, giving you deeper insights into patterns of online behaviour, dormant press coverage and potential red flags about a candidate, before you recommend them to a discerning client.

3. Candidate experience challenges: Keeping it running smoothly

Sometimes recruiters are guilty of neglecting the candidate experience in favour of keeping their clients happy. However, this can quickly lead to bad-mouthing and negative reviews, and an inefficient background check process is often the main culprit.

Lengthy, repetitive or invasive background checks can frustrate candidates, especially top talent who may already have received multiple offers. Poor communication leading up to and during this stage can also damage your agency’s brand.

The solution: Open communication and a more efficient timeline

Don’t risk putting off the best applicants with an unclear process. If it’s going to take some time, take care to communicate clearly about expected timelines, and check in regularly with updates. A candidate waiting on tenterhooks and may have other offers on the table will appreciate the effort.

Modern AI tools streamline background checks into quick, intuitive workflows with minimal disruption. You can securely upload candidate CVs, and the system handles the rest. Because a tool like YOONO scans only publicly-available sources, you don’t need to seek candidate consent, giving you early-stage confidence that they are the individual to pursue further.

4. Information overload: Drowning in data?

When is too much information quite simply…too much? We are able to access more data about candidates than ever before, through online research or intelligent background checks. But does this equate to understanding them better?

Quite frankly, the answer is no. If a candidate creates a lot of self-made information about themselves online, they are dictating the narrative, leading to a completely one-sided, subjective picture. When a recruiter picks up these breadcrumbs, it can be sometimes difficult to tell who is the author, and whether the angle is biased. Platforms like LinkedIn can be particularly misleading sources of information, with false or embellished credentials easily dressed up as professional CV timelines.

With more data comes more pitfalls. The challenge is filtering through each information source and determining its validity, which let’s be honest, is no walk in the park.

The solution: Cutting through data noise

You have two options when dealing with information overload—outsource the data-sifting to an experienced external research company, or use a digital tool that’s up to the job.

AI-powered research platforms can intelligently filter, prioritise and summarise candidate information, surfacing key information that has been cross-checked for authenticity. Instead of sifting through 50 pages of search engine data, you get a clear, concise report highlighting essential facts, relevant achievements and any potential red flags. It’s in-depth intelligence without the overwhelming data volume, so you can make more confident decisions faster.

5. Bias and compliancy

Bias and compliancy are persistent challenges in recruitment, often rooted in unconscious human tendencies to judge candidates before really knowing them, as well as pressures to fill roles quickly. Recruiters may inadvertently favour candidates who mirror their own experiences, backgrounds or demographics, a common issue known as affinity bias. With the ability to contribute to poor hiring decisions, affinity bias can potentially exclude highly qualified candidates from diverse backgrounds or underrepresented groups.

As well as the risk of introducing bias into the recruitment process, insufficient due diligence can also lead to rushed hiring decisions, which can mean crucial historic problems are easily overlooked, such as fraud, lawsuits or inappropriate behaviour.

Add to the mix KYC/AML obligations for regulated industries, in which recruiters may lack the tools for proper Know Your Customer checks for contractors or clients, and you have a perfect storm of bias and non-compliancy fast degrading the quality of your hiring process.

The solution:

You might groan when we tell you that again AI offers a really robust solution to bias and compliancy issues faced by recruitment agencies. But consider this—unlike humans, well-designed AI systems are not susceptible to fatigue or personal bias, allowing them to highlight red flags or strengths that might be overlooked, and when built ethically they can also minimise bias, ensure compliance with regulatory standards, and support diversity by prioritising objective metrics over subjective impressions.

Is AI the much-needed solution to major recruitment problems?

AI is fast transforming the way recruitment agencies operate, particularly in relation to automating administrative tasks and performing more sophisticated and efficient background checks. The result? Happier and more verifiable candidates, speedier workflows and more satisfied clients.

External recruitment agencies thrive on efficiency, credibility and candidate satisfaction. By integrating AI-powered background checks, you can:

  • Cut background research time from days to minutes.

  • Deliver fewer but higher-quality candidates, who are more likely to be great fits.

  • Provide a seamless, candidate-friendly process that won’t deter top talent.

  • Focus on the insights that matter most to your clients, helping you to deliver a good hire and a good culture fit.

In a market where speed and accuracy can make or break a placement, AI isn’t just nice-to-have tech wizardry, it’s becoming a competitive necessity. So don’t miss the boat. Start a YOONO search and see how AI candidate intelligence can propel your recruitment business into the future.

See what YOONO can do for you

Get a clear, complete view of every candidate in minutes with YOONO’s comprehensive reputation checks.

YOONO operates as an independent software service and is not associated with, endorsed by, or connected to any third-party recruitment, due-diligence, or compliance providers.

Sign up to YOONO insights

See what YOONO can do for you

Get a clear, complete view of every candidate in minutes with YOONO’s comprehensive reputation checks.

YOONO operates as an independent software service and is not associated with, endorsed by, or connected to any third-party recruitment, due-diligence, or compliance providers.

Sign up to YOONO insights

See what YOONO can do for you

Get a clear, complete view of every candidate in minutes with YOONO’s comprehensive reputation checks.

YOONO operates as an independent software service and is not associated with, endorsed by, or connected to any third-party recruitment, due-diligence, or compliance providers.

Sign up to YOONO insights