The shrinking rec-to-rec market has forced many recruitment agencies to reconsider the way they source their consultants, according to industry executives.

B Series Group managing director Ken Fowler told Shortlist the company hasn't been approached recently by a rec-to-rec, despite being in the market for more consultants.

"Yes I would use [rec-to-recs], yes I have used them, yes I am hiring, [but] no I haven't heard from a rec-to-rec firm this calendar year," he said.

"[Normally] any rec-to-rec firm would see [a job ad] and call me and say, 'I've got some good candidates for that role, Ken. Can I send them over?' I haven't heard from anyone."

The absence is particularly notable given B Series Group has been an avid user of rec-to-recs in the past, and is now looking to grow its 16-consultant headcount, he said.

"[Three years ago] I would've been the poster boy for who a rec-to-rec wants to go on a date with."

B Series Group's most recent hires have come from SEEK ads, or a mail-out to its own database, said Fowler.

Tough to move consultants, even using a rec-to-rec

Most good consultants are unlikely to leave their job if they're content, which is why rec-to-recs can prove valuable if they have close relationships with candidates and insights into their career drivers, said Greg O'Shea, the founder of boutique accounting and finance specialist Absolute Executive Recruitment.

"If anyone's going to be across the market and ideally know what consultants are out there looking and who's good, [rec-to-recs] have a pretty good grasp on it.

"In this market in general, whether it's recruitment consultants or professionals, they're hard to dislodge from an organisation if they're happy, given the uncertainty and risk."

But O'Shea said he has partnered with a rec-to-rec for the past 12 years, and in that time, received just six resumes, which shows how scarce high-quality, suitable talent is, he said.

"Most of the guys that work in our business average around 12 years' experience. There's not too many of those around – they either stay in recruitment or get out of it before that time," said O'Shea.

"[We want] someone who understands the landscape, has some contacts and is going to bring some IP to the table... We have hired people through rec-to-recs, but we have sourced most of our people direct."

'We aren't as loud anymore': rec-to-rec

The rec-to-rec market has contracted substantially over the past few years, according to Watson Collard director Craig Watson.

Those that remain have had to adapt their operating model to meet the changing needs of the market, he said.

Under the old model, rec-to-recs could farm candidates out to 10-to-20 different recruitment agencies and wait for someone to buy, but that's now changed, said Watson.

"With the access to the level of technology that recruiters have, that level of candidate they can reach themselves... [having good client relationships is] not only indicative of rec-to-rec, it's indicative of good recruitment practice across the board," he said.

"We maintain a relationship with a small group of clients. The fact that good talent is hard to come by means that you're focused on strong client relationships so you can really understand them, and work on building a pipeline of candidates specifically for them."

WatsonCollard has also tackled the diminishing rec-to-rec market by diversifying into consulting and training for its clients.

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