At Silver.dev, we frequently talk to companies dissatisfied with their previous agencies. We listen carefully to these companies and continually evaluate our efforts to ensure our clients succeed in the long term. Hiring is always a numbers game. Even if you do everything right, it might not work out. However, doing things incorrectly significantly lowers your chances of success. Based on our observations and user interviews, we've compiled the following list.

#1 Agency-Company Fit

Especially post-pandemic, companies are overwhelmed with agency offers and struggle to choose the right one. We wrote about choosing an agency here.

📋 Agency Vetting

The typical LatAm agency or freelancer focuses on candidate volume and often skips technical vetting. The best business for a recruiting firm is a company with ample cash and a low hiring bar, making placements easy, fast, and profitable. Demanding clients with few positions increase operational expenses, especially if technical screenings are required.

Most LatAm agencies do not conduct technical screenings, flooding companies with high hiring standards with unvetted candidates that waste valuable engineering time. If you have a high technical bar and find interviewing costly, look for agencies that provide technical vetting, though they may be more expensive.

❌ Portfolio Mismatch

Agencies become efficient by serving similar clients looking for similar talent. This approach improves their chances of finding matches by sourcing candidates who interview at multiple companies simultaneously.

Success in recruiting comes from repetition and iteration. Agencies with diverse client profiles need to optimize operationally and skill-wise, making it harder to find your specific talent. Agencies with similar client profiles have existing talent pools, proven sourcing strategies, and refined pitching and interviewing processes.

#2 Contracting Model Mismatch

Staffing contracts and direct employment are different hiring models that attract different types of talent. Agencies that source talent for long-term engagements seek candidates who want to master a domain and grow within a company. Staffing agencies, on the other hand, pick talent adaptable to multiple organizations, ready to be hired and fired quickly. This talent is task-driven and often uninterested in learning a domain as it may change frequently.

Use staffing agencies for short-term, easily hired, and fired talent. Choose direct employment when building a long-term team. The contracting model determines the kind of talent you get, so choose accordingly.

#3 Insufficient Cultural Screening

Startups often look for high-ambition, high-energy talent that wants to grow quickly and master a domain, placing high-stake bets on their careers.

However, some talent prefers work-life balance and long-term stability. This difference can be seen as the US vs. Europe working culture.

If your company expects long hours, intensive dedication, and ownership, filter for this in your interview process. Otherwise, you may end up with uncommitted and dissatisfied employees.

#4 Lowering the Bar Too Much

The Iron Triangle of recruiting tells us that you get what you pay for—better talent costs more money or more time to find.

When companies start hiring remotely, they often overadjust. ![Top Reasons Why Remote Hiring Fails - Fair Value Curve](Top Reasons Why Remote Hiring Fails - Fair Value Curve.png"Top Reasons Why Remote Hiring Fails - Fair Value Curve")

There are penalties in English proficiency, work experience, and technical prowess when you place yourself lower on the Fair Value Curve. However, within the talent pool that fits your budget, aim to get the best talent possible. Expensive is expensive, and cheap is also expensive.

There is no way around this—you need an appropriate technical and cultural hiring bar to ensure you have great talent.