What Your Recruitment Fee Really Covers and Why Background Checks Are a Key Part of the Value
Most organisations understand what they are paying in recruitment fees, but very few appreciate the depth of work and the extensive safeguards that fee covers. Recruitment services can appear expensive at first glance, especially when viewed as a single line item on an invoice. But when you break down what a recruitment agency actually absorbs in time, risk and resources, the structure becomes clearer.
Most reputable agencies, including The People Connection, operate on a contingency model. This means that no fee is charged unless a candidate is successfully appointed. Throughout your search you are free to change the job description, put the role on hold, appoint internally, use multiple agencies, or hire someone referred to the organisation. The recruitment company carries the full risk of the process until the day the appointment is made.
Understanding this helps explain why background checks are staged and why not every candidate is fully vetted before the very first interview.
Why Agencies Do Not Conduct Full Checks Before the First Interview
It is natural for clients to expect thorough screening. However, it is not feasible or practical for agencies to complete the full pack of checks on every candidate before an initial introduction. At this early stage:
• Job requirements may change
• The role may be placed on hold
• The client may decide to promote internally
• Multiple agencies may be working on the same vacancy
• The candidate may withdraw
• The client may shortlist only one out of many CVs submitted
Because of these moving parts, it is not reasonable to expect agencies to complete comprehensive background checks for every early-stage candidate. The correct and professional time to do so is once you have identified your shortlist and are preparing for the second or final interviews.
This approach ensures that time and resources are invested in candidates who are genuinely being considered for appointment.
When Full Checks Should Be Completed
You should expect a complete pack of checks to be done:
• Before second round interviews
• Before final interviews
• Or at the latest, before a formal offer is submitted
At this stage, the candidate has been properly evaluated and is under serious consideration. This is the point where full verification becomes not only appropriate but essential.
The good news is that all standard checks are usually included in your recruitment fee.
What Is Included in a Standard Background Check Pack
A reputable recruitment agency should provide a full verification pack on your shortlisted candidates. These checks typically include:
Credit Check through ITC: Relevant for finance positions or roles involving cash handling or financial responsibility.
Qualification Verification: Confirmation of all degrees, diplomas and certifications with the issuing institutions.
Reference Checks: At least one reference from a credible, verified source. Many roles require more than one.
Medical Aid Confirmation: Useful for onboarding and verifying current employment status when applicable.
Three Most Recent Payslips: Verification of salary, employment and earning structure.
Copy of Identity Document: Confirms identity, citizenship and eligibility to work.
Proof of Residential Address: Provides an additional layer of verification.
All of these checks form part of the value included in your recruitment fee.
Psychometric Testing
Some roles may also require psychometric assessments to evaluate behavioural style, problem-solving ability or leadership potential. These assessments are at an additional cost, not included in the standard recruitment fee and usually only carried out at the client’s request. They should be used to support your decision-making and provide an additional layer of insight rather than replace interviews or references.
Why Reference Checks Require Special Skill and Attention
References remain one of the most critical components of the recruitment process, and they require experience and care.
Best practice includes:
• Taking references only from direct line managers
• Verifying that the line manager is legitimate and was, in fact the person the candidate reported to
• Validating employment dates and reason for leaving with HR
• Confirming whether any disciplinary action was recorded
• Cross-checking information with LinkedIn and internal HR records
These steps ensure that the reference is accurate, credible and aligned with the candidate’s employment history.
It is worth noting that some organisations have a policy of not providing references. This is standard practice and not a reason for concern.
What Recruitment Fees Actually Pay For
Your recruitment fee covers far more than the introduction of a candidate. It includes:
• Access to existing talent networks built over decades
• Specialist market knowledge
• Sourcing, screening and interviewing
• Shortlisting and suitability assessments
• Full background check packs
• Reference verification
• Fraud prevention processes
• Risk mitigation throughout the hiring cycle
• The contingency model where no fee is charged unless you appoint the candidate
Essentially, your recruitment fee purchases both expertise and protection. It ensures you avoid costly hiring mistakes, inaccurate information and preventable risks.
Final Thought
In a market where hiring challenges are increasing and misrepresentation is on the rise, background checks are not simply an administrative step. They are a crucial part of safeguarding your organisation. When you understand what your recruitment fee covers and how checks are integrated into the process, you gain clarity, confidence and significantly reduced hiring risk.
If you want a recruitment partner who brings precision, integrity, and decades of specialist finance expertise to every appointment, connect with The People Connection. Let us help you secure the right finance professional with confidence.