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The DIY Hire: When Saving the Recruitment Fee Costs You the Sale

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about 1 month ago

by Charles Noyce

The DIY Hire: When Saving the Recruitment Fee Costs You the Sale

The DIY Hire: When Saving the Recruitment Fee Costs You the Sale

A former client of ours, now running sales at a different business, has a policy of not using recruiters or external suppliers.

On paper, it is a sensible call. Recruitment fees are a real cost, and any finance director will rightly ask why you would pay a sales recruitment agency when you could potentially fill the role yourselves.

It is the same logic that makes most of us reach for YouTube before we reach for a tradesperson. Painting a wall, building some flat-pack furniture, even swapping a tap washer — fair enough, have a go.

But there is a reason people still call an electrician for a rewire.

Some jobs carry a real cost if you get them wrong. The DIY instinct does not always tell you where that line is until you have crossed it.

Hiring a senior sales role is often closer to the rewire than the tap washer.

The Real Cost of Hiring Salespeople Without a Recruiter

Hiring salespeople directly can absolutely work, and for many roles it is the right approach. But the recruitment fee should not be the only number in the decision.

For a revenue-generating sales hire, the bigger commercial risk is getting the appointment wrong. Months spent ramping an underperforming salesperson can mean lost pipeline, missed revenue, management time and, eventually, the cost of starting the recruitment process again.

The question is not whether you can hire without a sales recruitment agency. Of course you can. The question is whether your internal process gives you access to the right people and enough evidence to identify who is genuinely likely to perform.

  • Market visibility: Are you seeing the strongest sales talent, or mainly the candidates actively applying for jobs?
  • Evidence of performance: Can you properly validate quota attainment, sales cycles, pipeline generation and the reasons behind previous moves?
  • Cost of a bad hire: What would six months of salary, ramp time, management input and missed pipeline actually cost the business?

What We Are Actually Seeing in the Sales Hiring Market

This is not a theoretical argument about recruiters. It comes from a pattern we see regularly when speaking to businesses hiring salespeople across the UK and EMEA.

We approach companies with candidates who are genuinely strong on paper. They might have solid enterprise Account Executive experience, a proven SDR background or several years selling into the exact market that business is targeting.

One of the things we pay attention to is tenure.

Many of the stronger candidates we represent have stayed in previous roles long enough to comfortably outlast three or four sales cycles. That does not automatically make somebody a good salesperson, but it gives you something meaningful to investigate.

If someone has remained in a demanding sales environment through multiple quarters, annual targets, territory changes and difficult patches, you can start asking better questions about what they actually achieved.

Some businesses will not engage with those candidates because their policy is simple: no recruiters, full stop.

Then two, three or sometimes five months later, we see who they hired instead.

And a fair few of those people have moved jobs three or four times in the previous three or four years.

That does not automatically make them a poor hire. There are legitimate reasons for short tenure, particularly after the restructures, funding changes, acquisitions and redundancies we have seen across technology and SaaS businesses.

But it is a pattern worth questioning.

Businesses that rule out recruiters entirely may believe they are avoiding a cost. In reality, they can end up trading a visible cost — the recruitment fee — for a much less visible one: a salesperson who does not stick, does not ramp or does not deliver.

The Recruitment Fee Is Only One Part of the Cost

This is where the maths around sales hiring can become misleading.

A recruitment fee appears clearly on a spreadsheet. The cost of a bad sales hire usually does not.

Imagine you are recruiting an experienced Account Executive. You advertise the role, review applications, run interviews and eventually make an appointment.

The new hire starts and the investment begins.

There is salary, onboarding, product training and management time. There is also the time needed to understand the market, build relationships and create pipeline. Depending on the business and sales cycle, it may be several months before you can properly judge performance.

Six months later, it becomes clear the hire is not working.

Perhaps they are not generating enough pipeline. Perhaps the deal sizes or sales cycle are significantly different from their previous role. Perhaps the performance described at interview does not stand up once they are actually in the seat.

Eventually, they leave.

You saved the recruitment fee.

But you may also have lost six months of sales capacity, management time and pipeline generation. The territory has potentially been underworked, opportunities have been missed, and now you are starting the sales recruitment process again.

For a revenue-generating role, that is the number worth understanding.

Three Questions to Ask Before Choosing the DIY Hiring Route

1. Do You Have Visibility of the Whole Sales Talent Market?

Posting a vacancy gives you visibility of people willing to apply for that vacancy.

It does not necessarily give you visibility of the best available sales talent.

Some of the strongest Account Executives, SDRs, Business Development Managers and sales leaders are already employed and performing. They are not necessarily spending their evenings on job boards submitting applications.

They may, however, listen to the right opportunity when somebody credible approaches them with a reason to have the conversation.

That distinction matters. Before deciding you can cover a role internally, ask whether you genuinely have visibility of the market or simply visibility of the applicants.

2. Can You Properly Test the Candidate's Sales Track Record?

Sales CVs can be difficult to assess because almost everybody has a good number somewhere.

They exceeded target. They were a top performer. They landed a major logo. They generated a certain amount of revenue.

Those claims may all be completely legitimate. The challenge is understanding the context behind them.

If somebody has held four sales jobs in four years, there might be a perfectly reasonable explanation. But it deserves more investigation than accepting each individual explanation at face value.

What was their quota? What percentage did they achieve? How long was the sales cycle? How much pipeline did they generate themselves? How did the wider team perform? Why did they leave? And crucially, were they in the role long enough for performance to be properly measured?

That filtering is where a good sales recruiter should add value. It is not about sending more CVs. It is about understanding which CVs deserve your time in the first place.

3. What Would Getting This Hire Wrong Actually Cost?

This is probably the most important question.

Compare a recruitment fee with a successful direct hire and the fee can look expensive.

Compare it with an unsuccessful hire and the calculation changes.

For an SDR, Account Executive or sales leadership appointment, consider salary during ramp, management time, onboarding costs, missed pipeline, lost revenue opportunity and the cost of restarting the process.

There is also an opportunity cost that is harder to put on a spreadsheet.

If the right salesperson had spent those six months building pipeline, progressing opportunities and winning customers, what might that have been worth?

The answer will be different for every business. But it is worth doing the calculation before assuming that avoiding an agency fee automatically represents a saving.

Where a Specialist Sales Recruiter Should Earn Their Fee

None of this is an argument for using a recruiter for every hire.

Plenty of businesses hire salespeople very well themselves, particularly when they have experienced internal talent teams, strong referral networks and a good understanding of the roles they recruit repeatedly.

If your internal process consistently gives you access to strong candidates and produces people who perform and stay, there is little reason to change it.

The case for specialist sales recruitment becomes stronger when the role is difficult, commercially important or outside your usual network.

And the value should not simply be sourcing.

Most businesses can post a job and generate applicants. The harder part is filtering the market: understanding who has genuinely performed in a comparable environment, who is likely to work in your particular sales motion, and which apparent strengths start to look less convincing when you examine the detail.

That is where a specialist should earn their fee.

At CN Sales Recruitment, we would never argue that every sales vacancy needs external recruitment support. The better question is whether the importance and difficulty of a particular appointment justify widening the search and bringing specialist market knowledge into the process.

Do Not Let a Blanket Policy Become a Hiring Blind Spot

There is nothing wrong with wanting to reduce recruitment spend. There is also nothing wrong with challenging a recruitment agency on the value it actually provides.

Businesses should do both.

But “we don't use recruiters” can become a blind spot if it prevents a hiring manager from even seeing salespeople who could materially improve the team.

The decision does not need to be ideological.

Sometimes direct hiring is the right answer. Sometimes a referral produces the best person. Sometimes a specialist search opens up a section of the market your internal process simply cannot reach.

The commercial decision is to understand which situation you are dealing with before choosing the route.

Key Takeaways for Sales Leaders

  • A recruitment fee is visible. The cost of a poor sales hire often is not. Ramp time, management input, lost pipeline and a second hiring process can quickly change the economics.
  • Applicants are not the whole market. Some of the strongest sales talent will not be actively applying for jobs.
  • Tenure is worth investigating. Short stays should never be judged without context, but repeated moves deserve proper questioning.
  • A specialist recruiter should provide judgement, not just CVs. The value is in market access, qualification and knowing what evidence of performance to look for.
  • DIY sales hiring is not the problem. The risk is making it a blanket policy without considering the commercial importance of the individual hire.

Tenure is actually the next thread worth pulling on because it remains one of the most useful — and most misunderstood — signals when assessing sales talent.

More on that shortly.

Wondering whether your current hiring approach is giving you full market visibility? Get in touch for a no-obligation conversation about the role and what you might be missing.

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