Backdoor hires are also known as unauthorized or backdoor placements, pose a significant threat to recruiting agencies. These occur when a client hires a candidate submitted by an agency but fails to notify the agency or pay the agreed-upon fee.
Whether intentional or accidental, backdoor hires lead to lost revenue, broken trust, and weakened client relationships. Modern recruiting technologies can help you detect and prevent these silent losses.
What Are Backdoor Hires?
A backdoor hire happens when a candidate submitted by a recruitment agency is hired directly by a client, without the agency’s knowledge or compensation. This often violates contract terms and can be difficult to track unless the agency actively monitors the candidate’s post-submission journey.
Common causes include:
- Poor internal communication within the client’s HR team
- Delayed hiring processes (e.g., 3–6 months later)
- Candidate data is being shared across departments without proper attribution
- Recruiter-client turnover resulting in forgotten submission histories
Why Should Recruiting Agencies Be Concerned?
The financial impact of even one backdoor hire can be severe, especially for high-value placements. More importantly, these situations can erode client trust, create legal disputes, and make it difficult to forecast agency revenue.
For staffing firms operating in competitive industries like tech, finance, or healthcare, implementing systems to monitor candidate usage is essential to maintaining profitability and operational integrity.
Tools & Technologies That Help Prevent Backdoor Hires
Tools like placement protector monitor candidate employment data across LinkedIn, job boards, and company websites using AI and big data. They alert agencies if a submitted candidate is hired without notification.
Benefits:
- Continuous tracking post-submission
- Alerts when a candidate gets hired
- Integration with popular ATS platforms
Best Practices for Preventing Backdoor Hires
Technology is only one piece of the puzzle. To fully protect your agency:
- Use contracts that clearly define candidate ownership periods (e.g., 6–12 months).
- Send all candidate submissions via trackable email or CRM platforms.
- Educate clients about the risks of non-compliance or accidental hires.
- Follow up on older submissions, especially if a role reopens.
- Document everything. Create a digital paper trail for each candidate.
Final Thoughts
Backdoor hires are more than just lost fees; they reflect operational blind spots. With the right tools and best practices, your agency can reduce risk, protect revenue, and build long-term client trust.
