Client Bypass
When a candidate contacts a hiring company directly, circumventing the recruitment agency that sourced them.
## What is Client Bypass?
Client bypass occurs when a candidate who was initially introduced by a recruitment agency directly contacts and negotiates with the hiring company, effectively removing the recruitment firm from the transaction. This typically happens after the candidate has been presented to the client and before a formal placement agreement is concluded.
## Why It Matters
For recruitment agencies, client bypass represents significant lost revenue, as placement fees are forfeited when the direct hire occurs outside the agency relationship. It undermines the business model of staffing firms and can create legal disputes over placement fee entitlements. Managing client bypass risk is critical for agency profitability and sustainability.
## Preventing and Managing Client Bypass
Agencies protect themselves through clear contractual terms that establish exclusivity periods, explicit fee obligations for direct placements, and non-solicitation clauses. Some agencies use candidate NDA agreements that outline the terms of introduction. Building strong, transparent relationships with clients and candidates reduces the incentive for bypass while demonstrating clear value in your sourcing and vetting process.
## How CurriboxAI Helps
By improving candidate matching quality and reducing time-to-placement, CurriboxAI minimizes the window where client bypass can occur. When placements happen faster and more successfully, there's less opportunity for direct negotiation outside agency channels.
Related Terms
Placement Fee
Commission paid by employers or placed candidates to recruitment firms, typically calculated as a percentage of first-year salary.
Staffing Agency
Recruitment firm specializing in identifying, vetting, and placing candidates with employers, generating revenue through placement fees or supply margins.
Recruitment CRM
Customer Relationship Management system adapted for recruitment to build and nurture relationships with candidates over the long term.