In-House Recruitment or Agency: Which Works Better for a Startup Business? - Newslibre

In-House Recruitment or Agency: Which Works Better for a Startup Business?

Recruitment is an important stage for any business whether it is just a startup or a full-fledged organisation that has been in existence for a while. By a textbook definition, we can describe the two types of recruiters as follows:

  • Agency recruiter – a person who headhunts to fill job openings in companies or organizations based on the qualifications and demands set by his clients. He is not an immediate employee of the company.
  • In-house recruiter – a person who sources candidates for vacant roles within the organization he is an employee of.

They may appear to have the same job in different settings but if you analyze it, you will notice the striking differences between the two and there is a lot. So, how do they differ?

The line of demarcation.

Responsibility scope.

Agency recruiters are hired by staffing agencies that cater to multiple clients in different business sectors. Because of such wide coverage, they have a pool of candidates that can be placed across various industries.

However, depending on the agency’s focus or specialization, they have the liberty only to headhunt pre-determined roles for a specific industry so they can also gain credibility for that matter. Often, companies only seek their service to look for individuals who can work on either a short-term or per-project basis.

In-house recruiters, on the other hand, are solely responsible for the hiring needs of a single company. As such, they only hire candidates parallel to specific company culture, brand, or demand. Moreover, unlike agency recruitment, these in-house recruiters also aim to hire employees for permanent positions.

Qualities and skillset.

The average agency recruiter is more aggressive than those working in-house. They have a go-getter attitude and like taking initiative. Of course, since they work on a per-account basis, they must thrive in fast-paced environments and should have impressive sales and convincing skills. It is not a surprise that this type of recruiter is competitive and results-driven. Working for multiple accounts has enabled them to work efficiently alongside multiple clients.

Differently, in-house recruiters strictly follow and develop hiring procedures. They are strong team players and are administrative-driven. They eye on hiring individuals not only to fill the positions but also to ensure that these hires thrive on and retain them.

This is because in-house recruiters value the importance of a recruitment experience. They stick with the new hires in the entire process from shortlisting to onboarding.

Salary and bonuses.

Agency recruiters usually work on a commission basis. In some cases, depending on arrangements and expertise, base pay may be included in the total compensation. This payment scheme is what makes these agency recruiters highly competitive and motivated to deliver their jobs with outstanding performance.

If you are to hire an agency, you will have to have the purse strings for your agent’s commission as well as the agency’s cut. They can be quite expensive but if you analyze their worth, you will only need an agency recruiter if you have crucial seats that need to be filled.

In-house recruiters earn from their base salary. They are kept in the payroll roster of the company throughout the year. Many companies ask these recruiters to offset their responsibilities, given that their job responsibility is only urgent when there is a vacancy, by working alongside human resources in implementing plans and programs that are for the benefit of the entire manpower of the organization.

But which one should you pick?

If your startup business immediately requires a huge load of recruiting and thus there is a need to find qualified and experienced candidates, you can benefit so much from tapping an agency recruiter. Let them do the sourcing for you while you work on improving other aspects of the company.

If you are keeping things within your budget, all the more that agency recruiters work best for you since you are only required to pay them each time you use their service. What most startup companies like about agency recruitment is that it is negotiable.

In-House Recruitment or Agency: Which Works Better for a Startup Business? - Newslibre
Photo by Tima Miroshnichenko/Pexels

Usually, agencies make the most out of startup businesses’ budgets. If the agency values all forms of business, they will value yours as they would a big company.  Remember to lean on agency recruiters only when you need to fill various roles urgently so you can keep more time for yourself to have other tasks done. Once they have found a potential candidate for a position, you will only screen it for the final round of the interview and employee onboarding.

However, if the employment trend in your startup business manifests a high turnover rate, an in-house recruiter is the best option for you. Keeping an in-house recruitment team works best for startups that are very much concerned about their brand image and work culture as they would continuously screen applicants until they find the right fit.

You would also need in-house recruiters if your goal is towards expanding your business — bigger business means bigger employee size. To help your in-house recruiters deliver their jobs with accuracy, you may also introduce recruiting software — it can also be your company’s commitment to reduce carbon footprints.

All in all, choosing one over the other entirely depends on your manpower needs, budget, and time since there is no definitive answer as to whether in-house recruitment or agency recruitment is better. The only thing certain is that each recruitment type has more pros than cons and could work well if hired for its intended purpose.


The article was originally written by Bash Sarmiento who is a writer and an educator from Manila. He writes in the education, lifestyle, and health realms. His academic background and extensive experience in teaching, textbook evaluation, business management, and traveling are translated into his works.

 

Check out: 5 Tips to Choose the Right Content for Your Business

In-House Recruitment or Agency: Which Works Better for a Startup Business? 1

Author: Bash Sarmiento

Bash Sarmiento is a writer and an educator from Manila. He writes in the education, lifestyle, and health realms. His academic background and extensive experience in teaching, textbook evaluation, business management, and travelling are translated into his works

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