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The Power of Relationships: Why Recruitment Should Never Be Transactional

Find top people in Australia through relationship-driven recruitment. Discover why a human-first approach reduces turnover and builds stronger teams.

Nicholas Cox Posted by Nicholas Cox
April 27, 2025
4 min read

Recruitment is often seen as a race: post the job, scan the CVs, fill the seat quickly. But in Australia’s creative industries, where people are the heart of every idea, product, and campaign, this transactional approach simply does not work. Real recruitment is about relationships. It is about understanding people, their values, and their ambitions, and matching them with the right places where they can thrive.

Why Transactional Hiring Fails in Creative Industries

Creative businesses thrive on passion, collaboration, and culture. Rushed hiring focuses only on skills, overlooking the chemistry and shared purpose that drive great work. According to the Media Federation of Australia, churn rates across creative agencies have reached almost 40 percent in recent years. Much of this is due to poor hiring practices, quick fixes that end up costing businesses more in the long run.

The true cost of a bad hire is estimated at 30 percent of their first-year salary, with ripple effects that include disrupted teams, project delays, and damaged morale. Creative projects, which rely on trust and synergy, are especially vulnerable. In short, transactional recruitment might fill a role today but it creates bigger problems tomorrow.

What Relationship First Recruiting Looks Like

Relationship first recruiting means playing the long game. Instead of focusing on a CV checklist, it focuses on connection, finding out what motivates a candidate, what values they hold, and where they will genuinely flourish. Every interaction, whether or not it leads to a hire, is an opportunity to build trust.

At The People Place, this is our everyday approach. We take the time to stay in touch with our network, celebrate their milestones, and understand how their careers are evolving. When the right role comes up, we are ready with people we know, not just names on a list.

The Benefits of Building Relationships in Recruitment

1. Stronger Cultural Fit and Cultural Add

Relationship focused hiring naturally ensures candidates align with a company’s values and culture. It also opens the door for cultural add, people who bring new energy, perspectives, and ideas. In creative industries, diverse thinking leads to better innovation and stronger teams.

2. Better Retention and Loyalty

When people join a business where they feel understood and valued, they stay longer. Referral hires, often coming through strong relationships, have a 46 percent higher retention rate compared to hires from job ads. Investing in relationships during recruitment pays off in lower turnover and stronger teams.

3. Access to Passive Talent

The best creative professionals are often not actively job hunting. They are busy doing great work elsewhere. Relationship recruiters build trust over time, so when those top candidates are ready for a move, they call us first. LinkedIn research shows 73 percent of professionals are passive candidates, reinforcing how crucial relationships are.

4. A Stronger Employer Brand

How you treat candidates shapes how your brand is perceived. Candidates who feel respected and valued, even if not selected, often refer others or reapply in the future. In tight knit creative communities, reputation travels fast. A relationship first approach turns candidates into advocates.

5. Better Creative Outcomes

When you build teams based on trust, shared values, and genuine understanding, the creative output is stronger. Collaboration improves, ideas flow more freely, and the team feels energised, not cautious.

Real World Proof

At The People Place, we have seen the impact of relationships firsthand. One creative strategist we knew over several years was not actively job hunting. By keeping the relationship alive, we were able to place her in a major Melbourne agency at just the right time. Today, she has been promoted multiple times and sends talented people our way in return. That is the power of relationship recruiting.

While privacy means we cannot name every business, we have seen patterns across Australia’s creative sector that reinforce why relationships matter. Companies that treat recruitment as an ongoing courtship tend to have lower employee turnover, higher employee satisfaction, and stronger client outcomes.

How to Shift from Transactional to Relational Hiring

  • Start Early: Build relationships before you have an urgent vacancy. Stay connected with talent you admire.
  • Prioritise Values: Look beyond skills. Focus on shared values and future growth potential.
  • Stay Human: Communicate openly. Give feedback. Treat every candidate with respect.
  • Think Long Term: A great candidate today might be a great hire tomorrow. Keep the conversation going.

Conclusion: Good People for Good Places

Recruitment is not about filling seats. It is about building futures. In Australia’s creative industries, where ideas, collaboration, and passion are everything, a relationship first approach is not just better, it is essential.

At The People Place, we believe in finding good people for good places, not just for today, but for the long run. Relationships build trust. Trust builds teams. Teams build success.

If you want to future proof your business, stop thinking transactionally. Start thinking relationally. It is better for your people. It is better for your business. And it is better for the creative work that brings your brand to life.