The hidden cost of direct hiring

Why financial services firms should rethink their hiring strategy for marketing and communications roles.

Agility, reputation and regulatory compliance are non-negotiable in today’s financial services markets, and the pressure to hire the right talent quickly is high.

Many firms still rely on direct hiring methods, assuming they’re more cost-effective. But in reality, direct recruitment often costs more in time, energy and long-term value than partnering with a specialist recruiter.

This is especially true for marketing and communications roles in the UK’s financial services sector. Here’s what firms stand to gain by rethinking their approach.

The illusion of cost savings

At face value, direct hiring seems cheaper. There are no agency fees or intermediaries – just a job advertisement and a hiring manager. But this view overlooks the true cost of recruitment, which includes:

• Time spent by internal teams: In 2024, UK businesses reported spending up to ten hours per week just scheduling interviews. The hours multiply when you add screening, shortlisting and feedback loops
• Lost productivity: Every hour spent on recruitment is an hour not spent on core business activities – which is especially costly in high-value financial services environments
• Delayed time-to-hire: The longer a role remains unfilled, the more pressure builds on existing teams. This leads to burnout, errors and missed opportunities

Then there’s the risk of a bad hire, which can cost up to three times the salary of the role when you factor in onboarding, lost output and rehiring. 95% of UK businesses admit to making at least one bad hiring decision every year.

Why marketing and comms roles are uniquely complex in financial services

Marketing and communications roles in financial services are not just about creativity. Professionals must navigate regulation, manage reputation and communicate complexity. These roles require a rare blend of:

• Sector fluency: Understanding financial products, compliance constraints and stakeholder sensitivities
• Strategic thinking: Aligning messaging with business goals, investor expectations and market trends
• Crisis readiness: Managing communications during market volatility, regulatory changes or reputational risk events

Generic job boards and internal HR teams often lack the insight to identify candidates with this nuanced skillset. This causes mis-hires, longer hiring cycles and brand inconsistency.

The market is tougher than ever

The UK hiring landscape in 2025 is defined by longer hiring cycles and increased competition:

• Permanent placements have declined for over two years, reflecting a cautious market and a shrinking pool of active candidates
• Job postings in London are up, but active applications are down, suggesting that roles are staying open longer or being withdrawn due to hiring fatigue
• The best candidates are often passive. They are not applying – they are being approached. And they are more likely to respond to a trusted recruiter than a cold job advert

Why job adverts alone fall short

While posting a job advert and waiting for applicants might seem efficient, the quality and fit of candidates often fall short – especially for roles requiring specialised skills, leadership acumen or cultural nuance.

Job boards and career sites still have their place, especially for high-volume or entry-level roles, but for strategic positions, they often attract:

• Active job seekers who may not be top performers, but are simply available
• High volume but low relevance, requiring significant screening
• Generic responses with little insight into your company or culture

In short, job adverts pull from the shallow end of the talent pool – those who are looking, not necessarily those who are right.

The recruiter advantage: proactive sourcing and passive talent

Specialist recruiters offer more than just CVs. They bring market intelligence, candidate relationships and strategic alignment. For financial services firms hiring in marketing and communications, this means:

• Access to passive talent: Recruiters maintain relationships with candidates who are not actively job hunting but are open to the right opportunity
• Faster shortlisting: With a deep understanding of the role and the sector, recruiters can present a curated shortlist in days, not weeks
• Stronger cultural fit: Recruiters assess not just skills, but values, communication style and long-term potential
• Brand protection: Every candidate interaction reflects on your firm. Recruiters ensure your brand is represented professionally and consistently

Proactive sourcing taps into the passive candidate market – the 70%+ of professionals who aren’t actively applying but would consider a move for the right opportunity.

Here’s why this method delivers stronger results:

• Quality over quantity: Recruiters with deep networks know the difference between someone who can do the job and someone who will elevate it
• Speed and precision: While sourcing takes more time upfront, the shortlist is far more aligned to the brief
• Market intelligence: Specialist recruiters bring real-time market feedback – what candidates want, what competitors are offering and what you may need to change to attract top talent
• Stronger close rates: Passive candidates engaged through networks or recruiters often convert more reliably. They feel pursued, not processed

The cost of delay

Imagine a scenario where a mid-sized asset management firm needs a Senior Marketing Manager to lead a product launch. They choose to go direct. Six weeks in, they have screened 40 CVs, interviewed ten candidates and still haven’t found the right fit. Meanwhile, the product launch is delayed, internal teams are stretched and competitors are gaining ground.

Now imagine the same scenario with a specialist recruiter. Within two weeks, the firm is presented a shortlist of four pre-vetted candidates. The recruiter schedules the interviews and manages the feedback, and the hire is made in under a month. The product launches on time and the marketing hits the mark.

Time is money, so spend it where it counts

In financial services, precision matters but so does speed. Direct hiring may seem like a cost-saving measure, but in reality it often leads to longer timelines, higher internal costs and weaker hires – especially in complex, brand-sensitive roles like marketing and communications.

The best people aren’t always looking. They’re busy doing great work elsewhere. If you want them on your team, you need to go find them or work with someone who can.

Partnering with a specialist recruiter goes beyond filling a vacancy; it helps to protect your brand, accelerate your growth and ensure every hire is a strategic asset.

Get in touch with us today to discuss your hiring needs.