Agency recruitment vs in-house recruitment

Agency vs in-House recruitment

The recruitment process is far from simple. From creating job descriptions and sourcing candidates to pre-screening applicants and arranging interviews, there’s a real science involved in honing in on the ideal hire. For companies that regularly need to fill vacant roles, agency vs in-house recruitment is a common quandary.

Both hiring models have their benefits. Recruitment agencies are convenient, but they’re a costly way to fill vacant roles. In-house recruitment can help you snare the most suitable candidates, but you’ll need an established framework in place to make it a financially viable option. Wondering how else these two styles of recruitment differ? Need some help finding out which approach is best for your business needs? Read on for everything you need to know.

Similarities between agency recruitment and in-house recruitment

The in-house recruiter vs agency recruiter dilemma can be a hard one to call, with both approaches having their merits. However, if you want to make the best long-term hiring decisions,

Both use HR tools effectively

Both agencies and in-house recruiter teams will use HR tools when finding top talent to fill vacant roles. A good recruiter needs to know their way around an applicant tracking system and project management tools. These alleviate admin pressures and make it easier to manage large numbers of candidates.

Both call for excellent communication skills

As far as communication skills are concerned, things are pretty balanced in the agency vs in-house recruitment debate. Both are experts at establishing and nurturing relationships. The most effective recruiters need to be able to forge long-term relationships with candidates and spark connections that can help them source their next hire.

Both types of recruiters know where to source quality candidates

Still weighing up the pros and cons of the in-house vs agency recruiter argument? Both agency and in-house recruiting teams know where to find the right talent for every position. To attract the best candidates, recruiters need to be proactive in their approach to sourcing jobseekers. Any recruiter worth their salt will have an ever-expanding pool of candidates they can draw on. Building talent pipelines for specific roles makes it easier to fill position openings in record time.

Differences between agency recruitment and in-house recruitment

Recruitment agency vs in-house recruitment can be more easily answered by looking at how the two models differ. Is working with a recruitment agency becoming more hassle than it’s worth? Thinking about investing more resources into your in-house recruitment team? Below you’ll find some key differences that will help you make the right decision for your business.

Agencies are sales-focused, in-house recruiters aren’t

Agency recruitment is a sales-focused role and results-driven. Recruitment agencies make their bottom line by placing candidates in vacant roles, with retention and long-term suitability an afterthought. Agency recruiters need to use their sales ability to secure work with new clients, market available roles to jobseekers and convince companies that they’ve found an ideal fit.

An in-house recruiter still has roles to fill, but they’re more focused on long-term suitability and talent retention. In-house recruiters also have a better handle on employer brand and are fully versed in company culture. As such, they’re invested in finding a candidate who’s both right for the role and shares the same core values and central vision of the business.

There can be a significant knowledge gap

Although it varies, most recruitment agencies focus on certain industries or a particular type of position. This generally means that agency recruiters have a deep understanding of industry specifics and job skills. As they’re so well-versed, they don’t always need to discuss role requirements or a job description with clients.

In-house recruiters usually handle sourcing candidates for any position that becomes vacant within a company. They might lack in-depth knowledge of specific roles but do benefit from exhaustive insights into company-specific hiring practices. As they’re searching for a candidate that’s in sync with a company’s culture, they’re better suited to finding true team players.

Agencies work more quickly

Rather than spend ages sourcing the perfect candidate, agency recruiters are more likely to turn to existing talent pipelines for someone suitable. They may even already have a candidate in mind when discussing a vacant role with a client.

With in-house hiring, the needs of the company come first, with recruiters taking time to carefully source and screen potential candidates. Recruiters need to hammer out specifics with hiring managers, leading to a long-winded process. Multiple channels are used to find candidates while screening these candidates is time-consuming. If someone suitable isn’t found, in-house recruiters cast the net wider or restart the search, rather than settle for a second-rate hire.

Using a recruitment agency can be more cost-effective

For most businesses, the in-house recruitment vs agency conundrum is a question of cost. Unless a company is constantly creating new roles, using a recruitment agency can make sense. However, agencies will charge a commission every time someone is successfully placed. This can prove costly for businesses, especially if you’re advertising for a senior position.

In-house recruiters are essentially full-time members of staff. As such, you’ll need to budget for a sizable salary and employee benefits. If you’re forever needing to find fresh talent to add to your team, this can prove a financially viable approach.

Agency and in-house recruitment differences

What is better? Agency recruitment or in-house recruitment?

If you need to fill a vacancy quickly, a recruitment agency can usually deliver. Although you’ll find plenty of generalist agencies, most are focused on particular industries, making it easier to find experienced candidates. However, an agency-based recruiter will never be able to comprehend a company’s values and mission statement the way an in-house recruiter can.

Depending too heavily on recruitment agencies can also prove cost-prohibitive. Furthermore, you can’t always count on high-quality candidates. During busy periods, an agency-based recruiter may be stretched thin, leading to rushed placements with little chance of long-term success.

In-house recruitment isn’t always perfect. It can seem like an expensive alternative to agency recruitment but establishing effective hiring procedures takes time. However, a bit of teething trouble is far outweighed by the many benefits that in-house recruitment can bring to a company.

Advantages of in-house recruitment

With an in-house recruiter, you can be confident that your hiring efforts are always on-brand. You also have greater control over the entire process, from the creation of job descriptions to the shortlisting and selection of potential employees.

Once established, in-house recruitment can prove incredibly cost-effective. Even if you don’t have a constant stream of vacancies to fill, an expanding talent pool and refined recruitment processes make in-house hiring more financially viable.

Have you had bad luck with subpar candidates sourced by agencies? With in-house recruitment, you can refine the screening process with tailored assessments to separate the wheat from the chaff. Additionally, an in-house recruiter will become adept at identifying which candidates are best suited to a role within your organisation and which ones will never align with your company culture.

How to transition from a recruitment agency to an in-house recruitment team

Is your go-to recruitment agency proving to be increasingly unreliable? Perhaps you’re tired of spending a small fortune on all those commissions. With the right recruitment software behind you, it’s easy to say au revoir to agencies and hello to in-house hiring. With Teamdash, you have a customisable recruitment software solution that delivers far more than the standard applicant tracking system.

Designed by recruiters, Teamdash brings you plenty of innovative solutions for streamlining the hiring process. Stand out in a saturated market by creating an unforgettable careers page or drafting dynamic job advertisements. You can even use Teamdash to design and deploy social media campaigns to take recruitment beyond the usual job boards.

Need to fill a position quickly? You can tailor job application forms to help with pre-screening and streamline candidate sourcing. What’s more, you can unlock the power of recruitment automation at every stage. Your in-house recruitment team is freed from all those manual tasks, while features like automated messaging ensure no candidate is forgotten about. You can even use it to build talent pools and centralise candidate data, allowing you to quickly fill urgent vacancies with the best people for the job.

Ready to realise the potential of in-house recruitment with Teamdash? Book a demo today.

Marie Evart

Co-founder & Community Manager

Read about author
Next up

How To Reduce Costs of the Recruitment Process

Read more