Why Do Businesses Still Use Recruitment Agencies in 2025? A CFO’s Perspective

Why Do Businesses Still Use Recruitment Agencies in 2025? A CFO’s Perspective

In an era where every line in the P&L is being scrutinised, recruitment agency fees are often a tempting target for cost-cutting. With more advanced internal hiring tools, job boards, and AI-powered platforms available than ever before, why do businesses, especially small and medium-sized enterprises (SMBs), still choose to work with recruitment agencies?

To explore this, we spoke with Kirstine Archer, CFO of SF Recruitment, about the hidden costs of hiring and why businesses continue to rely on expert recruiters.

Kirstine is an ACCA Chartered Certified Accountant with over two decades of financial expertise, having navigated the complexities of finance across both practice and industry. From leading financial strategy at Bam Boom Cloud to senior roles at Cooper Parry and Equifax, her experience spans businesses of all sizes. She has been on both sides of the hiring equation, making strategic decisions on recruitment investments while balancing the financial realities of business growth; so she is perfectly placed to help us look at this issue:

The True Cost of Hiring: More Than Just a Fee

"Recruitment fees are an easy line item to look at and think, ‘Can we reduce or remove this?’” says Kirstine. “But when you break down the full cost of recruitment, both in money and time, many businesses find that agencies are an investment rather than an expense.”

For SMBs, this is particularly crucial. Unlike large corporations with dedicated in-house recruitment teams, most smaller businesses don’t have the capacity to handle a time-intensive hiring process without pulling focus away from their core operations.

1. Time Is a Business Owner’s Most Valuable Resource

Hiring is more than just posting a job advert and reviewing applications. It involves sourcing candidates, screening CVs, conducting interviews, negotiating offers, and ensuring the right cultural fit—all while keeping the business running.

“For SMBs, every hour spent on recruitment is an hour not spent on driving revenue, developing products, or serving customers,” Kirstine points out. “A well-networked recruitment partner dramatically reduces the time-to-hire, ensuring business leaders can focus on growth rather than CV sorting.”

2. The Cost of a Bad Hire

The financial impact of hiring the wrong person can be significant. A mis-hire leads to lost productivity, performance management, team disruption, and—ultimately—the cost of re-recruiting.

“Getting it wrong isn’t just frustrating; it’s expensive,” Kirstine says. “The cost of a failed hire can be as much as three to four times the role’s salary when you factor in wasted salary, lost productivity, and the cost of replacing them. When you work with an experienced recruiter, the likelihood of making the wrong hire is significantly reduced.”

3. Access to Candidates You Can’t Reach Alone

Even the best job adverts only attract active jobseekers; those already looking for a new role. But many of the best candidates aren’t actively searching; they’re waiting for the right opportunity to come to them.

“Our candidate database has been built over 20+ years,” Kirstine explains. “We have relationships with professionals who aren’t scrolling job boards every day but will move for the right role. Businesses who recruit alone often miss out on these high-quality candidates simply because they don’t know they’re available.”

Recruiters bring industry expertise, market insight, and access to a pre-qualified talent pool that most businesses, especially SMBs, simply don’t have the time or resources to build themselves.

The Case for Recruitment Agencies: More Than Just Filling Jobs

So, in a time when businesses are looking to cut costs, why should recruitment agencies remain a go-to solution? Because, for many organisations, recruitment is about more than just filling vacancies. It’s about:

✔ Saving time - allowing business leaders to focus on strategy, not screening CVs ✔ Reducing risk - minimising costly hiring mistakes ✔ Accessing top talent - reaching candidates who aren’t actively job hunting

"Yes, recruitment has a cost," Kirstine concludes, "but so does an empty seat in your business. Working with an expert recruiter ensures you get it right, first time—saving time, money, and resources in the long run."

Need recruitment expertise without the hassle? SF Recruitment has been supporting businesses for over 25 years, helping them find the right people, faster. Get in touch to find out how we can help.