Recruitment agencies are under threat from job boards selling CV databases direct to clients.

The practice, which Recruiter understands is now common throughout the online recruitment industry, cuts out the middle man and allows client firms to get hold of candidate details without using a recruitment agency.

Because candidate information is now so freely available, Recruiters face a race against time to track down suitable available candidates and submit their applications before employers call job seekers.

E-cruitment consultant Dave Ray said: “Practically every major job board does this. But employers don’t know the market as well as recruiters and how to get the best results out of the database. The employers will probably find good candidates about three or four days after a recruitment agency.

“Good recruitment agencies will be on that telephone first thing in the morning profiling the candidates and are in touch with them before the employers.”

Daniel Elkins, chief executive of TheSkillsMarket said the online recruitment industry is now in a price war with traditional agencies.

Employers must pay large amounts of money for CV databases, then pay someone to sift them and find suitable candidates who are able to work.

The challenge for recruiters is to prove they can do this process faster and more effectively than the clients’ in house recruiters.

Agencies with good market knowledge will always be able to source suitable candidates more efficiently, Elkins claimed.

He said: “The online recruitment industry has been telling the employers that they don’t need agencies – and the agencies know it.

“The online recruitment industry must prove it can reduce its costs per hire in order to gain market share. If the recruitment agencies can prove they can keep costs of hire down, the online recruitment industry is not going to gain as much ground.”

Mike Burke, a consultant at the agency Progressive, urged recruiters to get to know their chosen markets and the best candidates in it so they can provide more than just a CV matching service.

He added: “It is important to work proactively with candidates, get to know them and get them on your side. It’s no good waiting for people to come to you.”