Why Reviewing Your PSL Could Be the Best Hiring Decision You Make This Year

What if the biggest blocker to your hiring success isn’t the market… but the suppliers you’ve stopped questioning?

Preferred Supplier Lists (PSLs) exist for a reason. At their best, they bring structure, reduce admin, create consistency, and give internal teams peace of mind that recruitment is under control.

But here’s the problem: most PSLs were created years ago… and never meaningfully reviewed. And in the world of finance recruitment - where the market, candidate expectations, and skill demands evolve constantly - that “if it’s not broke, don’t fix it” attitude can quietly cost you time, money, and the candidates you actually want.

So, let’s dig into what PSLs are designed to do, why they can both help and hinder you, and why hiring managers should have a voice in how they’re managed.

What a PSL Is Actually For

A Preferred Supplier List is meant to:

·       Streamline your hiring processFewer suppliers = easier internal management.

·       Protect the businessSet terms, fees, guarantees, compliance requirements.

·       Ensure consistency of serviceA predictable process for HR, Talent teams, and hiring managers.

·       Mitigate riskPartners are vetted, onboarded, and trusted.

When used well, PSLs can support efficiency and protect the business. But when they’re static? They can do the opposite.

Why PSLs Can Become a Problem

Here are some all-too-common realities:

1. “We’ve always used them” isn’t a strategy

Many PSLs were created in a different hiring landscape entirely.Candidate expectations have shifted. Markets have changed.Your business priorities have evolved - but your supplier list hasn’t.

2. HR/Talent often manage PSLs… but don’t always use the suppliers

Internal teams usually own the PSL from a policy standpoint, but hiring managers feel the results.If you rely heavily on contractors, niche skill sets, or tight turnaround, the suppliers you need may not be the ones currently approved.

Hiring managers deserve - and need - a voice.

3. Being locked into old relationships can limit performance

That recruiter your predecessor relied on - the one who “knew the business”? The agency may still be on your PSL, but the person who truly added the value might not be.

Every new hiring manager brings different expectations, perspectives, and standards - and that relationship might not meet yours.

Good recruitment isn’t a subscription service. It should be evaluated, challenged, and refreshed.

4. You may be missing out on new or specialist agencies

Especially in finance.Roles have become more technical, candidate pools have become more passive, and businesses need partners who understand nuance, not just job specs.

Why You Should Review Your PSL Regularly

A PSL review isn’t about ripping up what works. It’s about asking whether what worked then still works now.

A fresh perspective can:

·       Improve the quality of candidates reaching you

·       Reduce time-to-hire

·       Help you understand market conditions you’re blind to internally

·       Bring in specialist knowledge that generic suppliers simply don’t have

·       Give you access to new networks or passive talent pools

And ultimately: your PSL should serve the business as it is today, not how it looked three, five, or ten years ago.

The Cost Of Staying With Underperforming Suppliers

Let’s look at the figures:

·       Slow turnaround = overtime, burnout, delays in BAU

·       Bad hires = retraining, re‑recruiting, lost productivity, decline in confidence in the current team

·       Poor candidate engagement = a negative brand experience

Sticking with an ineffective PSL partner isn’t just inconvenient - it’s expensive.

The Benefits of Opening the Door to a New Relationship

This doesn’t mean adding ten recruiters to your PSL. It means adding the right partner. Finance hiring changes quickly. Month-end pressure, audit seasons, maternity covers, project spikes… A PSL partner who can’t pivot quickly becomes a bottleneck, not a support.

An agency like ours at rcrtr.finance brings:

✔ Nearly 40 years of combined finance recruitment experience

This isn’t ‘throw some CVs over and hope something sticks’ - it’s long-term, relationship‑driven, insight‑heavy recruitment.

✔ A boutique, flexible approach

We’re not tied up in corporate KPIs or rigid processes.We can adapt terms, react quickly, and work the way you need us to.

✔ True partnership, not CV‑pushing

We’re researching when most people are switching off - market trends as bedtime reading, salary movement, auditing candidate availability, upcoming industry shifts.

✔ Exceptional candidate relationships

Finance professionals often speak to us before anyone else.

✔ Honest feedback and real conversations

We won’t sugarcoat the market.We’ll tell you what’s realistic, what isn’t, and how to compete for talent.

The Positives of PSLs

Let’s be fair - PSLs do bring value when maintained properly.

·       Structured process

·       Consistent terms

·       Clear expectations

·       Reduced risk

·       Faster onboarding of new roles

·       Accountability for suppliers

·       Better collaboration between internal teams and the business

When reviewed regularly, they’re an asset.

The Negatives of PSLs

But if left untouched, they become restrictive:

·       Outdated suppliers who don’t match current hiring needs

·       Talent missed because your recruiter doesn’t specialise

·       Slow time-to-hire

·       Lack of market insight

·       Hiring manager frustration

·       Rigid terms that don’t support niche or urgent requirements

·       Your PSL might list the right agency, but not the right person - and in today’s market, candidates follow relationships

·       The wrong recruiter can turn quality candidates off your business before you even meet them

In the worst cases? A PSL becomes a blocker, not an enabler.

So, hiring managers - what should you do?

Speak up. You’re the one impacted most by the PSL decisions made years ago by people who might not be in your business anymore.

Here’s how to start:

1.       Review the performance of your current PSL suppliersWho actually delivers for you?

2.      Discuss your needs with HR/TalentThey usually welcome insight - they just don’t always get it. Regular check-ins between hiring managers and Talent teams ensure the PSL reflects reality - not just policy.

3.      Suggest adding one new specialist partner to trialNo major overhaul. Low risk. High potential gain.

4.     Track resultsIf performance improves, your PSL improves.

A Final Thought…

If you find yourself saying “We have a PSL in place” just to close down a conversation - pause. It’s easy, it’s familiar… but it might be stopping you from accessing something your team genuinely needs.

We all ignore the LinkedIn message or the cold call.We all stick with the same suppliers because it feels simpler than questioning the process.

But your HR and Talent teams work hard to keep things compliant, consistent, and moving - and they rely on you to tell them what’s actually working.If a supplier isn’t delivering, or a role is stuck, they need that insight to make the right calls.

And sometimes, the recruiter you almost ignored?They might be the one with the candidate or market perspective your current PSL partners can’t offer.

Your PSL should protect you - not limit you.

So before defaulting to the same line, ask yourself:“Is this genuinely serving the business - or just what we’ve always done?” Sometimes one quick conversation - with Talent, or with that specialist reaching out - is all it takes to shift the result.