Agency VS In-House Recruitment : What’s Best For you?

inhouse recruitment vs agency recruitment

Every single employee who joins your organization has an impact on teamwork, productivity, and growth of the company. To hire the best talent, every company has two options. Whether to go for outsourcing recruitment or in-house recruitment? For a better understanding, let’s see how in-house recruiting is different from an outsourcing recruiting agency?

What Does In-House Recruiting Mean?

in-house recruitment process

In-house recruiting is a term used when a company hires or recruits on its own. For the same, it assigns an employee in the organization who is responsible to manage all the hiring efforts of the company. With the help of managers and stakeholders, the recruiter can source, screen, communicate and finalize the candidates. They work to fill different positions in multiple departments and work directly with the organization. An in-house recruiter is best to understand the budget, needs, and future goals of the company. They are equally focused on keeping their company’s growth in mind. Any grievance that occurs in the future is also handled by them only.

What Does Outsourcing A Recruiting Agency Mean?

outsourcing recruitment agency

An external recruitment agency is an outsider company that is hired to manage the recruiting functions of an organization. They are not part of the same organization. Their external recruiting process includes sourcing candidates, developing their database, and matching them with positions available with the companies they serve. Agencies generally work with different companies simultaneously. They provide services to marketing, law, IT, healthcare, and many other sectors. They have wider access in the market as compared to in-house recruiters.

Key Differences Between In-House Recruitment and Agency Recruitment

In-House and Agency Recruitment

1. Role Of Responsibilities

The recruitment agencies work for many clients across multiple industries. They work on mass recruitment drives and have the option of sourcing candidates for short-term roles too. While in-house recruitment hires only for the company, they work which is limited to one industry. They pay to close attention to cultural fit as they hire for permanent roles.

2. Hiring Speed & Efficacy

Agency freshman comparatively moves fleetly as they want to help your company fill the job and get paid and move on to the ensuing position. Sometimes they’re ready with the database of campaigners where you can skip the sourcing stage and get right to interviews. While in-house freshmen tend to be fussier as they will first meet the hiring executive to understand the exact purpose needs. They collect hopefuls from multiple sources and screen them before recording interviews.

3. Focusing On Selling

External recruitment agencies bring in money by providing you with the desired candidates. Their goal is to get the position filled as soon as possible. While in in-house recruitment there is no selling technique. The recruiter very well understands the company’s needs and prefers the best fit. In-house recruiter’s job depends on how effective they are in grabbing the best talent for their company.

4. Sense Of Urgency

urgency in recruitment

Talent acquisition consultants earn more by filling more positions. They are motivated to fill open jobs quickly. They also pull candidates from their database rather than sourcing new ones. They can save a lot of time on recruitment efforts. In-house recruiters have a more in-depth strategy for filling positions. This may hinder the company’s urgency to hire candidates.

5. Skills & Expertise

Job recruitment agencies are of a more sales-focused mindset which allows them to get the job done timely. When it comes to hiring candidates, they are highly competitive and will leave no stone unturned. They deal with many industries and come across many talented and expert people. They are skilled in providing a good fit for the organization. While for in-house recruiter people the aspect is more important.


6. Organizational Understanding

A person from within the organization will always be more focused and clear about organizational understanding and goals. An outsider may be an expert with hiring technical skills, but what value system an organization requires would be better understood by in-house hiring managers.

7. Technical Knowledge

technical knowledge analysis for in-house recruitment

Staffing agencies specialize in hiring. It’s their job and they understand what are the exact skills required for a particular position. Seeking help from the right agency will save your time and will prove very beneficial while hiring technical roles. On the other hand, hiring managers work in a general way and hire for all the departments that are required. There is a possibility of sometimes lacking some knowledge while hiring technical roles.


8. Compensation

compensation agency recruiter and inhouse-recruiter

A company has to decide on what it can afford an agency or in-house recruiter. Most of the hiring firms charge a percentage of the newly hired employee’s salary that is comparatively less costly for the firm. While an in-house recruiter is an employee whom you are bound to pay a fixed amount of salary and other benefits.

Factors to Be Kept In Mind before Choosing the Best from Two

The below-mentioned factors will help you to know which option is best for you.

1. Budget


Before signing any contract with an agency, have a look at your budget. Estimate the cost of in-house recruitment too. Compare the cost but do keep other constraints like time, effort, and urgency in your mind. Having an open vacancy for a long time and not filling it is also an additional cost. In such a case, going for a hiring agency will be more beneficial.

2. Hiring Requirements

To finalize the recruiting strategy consider what hiring needs your company has. For instance, in the case of a single, specialized position, going to an agency is good. While if you are looking for a director of employee relations, an in-house recruiter may have better insights and exact requirements for the job. For high-volume recruitment in big industries going for an agency is a good choice while for smaller firms it may not be that efficient.

3. Maintains Professionalism

Hiring agencies are very professional. They do not have any personal contact with any candidate. They suggest hires based on qualification, expertise, and the position to be filled. While in-house recruiters can bring in their near ones or friends, relatives, etc. neglecting their qualification or experience. Therefore, hiring agency recruitment is a more professional approach.

4. Punctual in delivery

The recruitment and selection process in hiring agencies is an ongoing process that saves the company’s time in delivering the required talent. They have a database and wider access to the market. While the in-house recruitment process is very time-consuming as it includes preparing a job description, sourcing candidates, line of interviews, etc. The process delays the delivery of candidates.

5. Proactive


The growth of hiring agencies depends on the number and quality of hires it provides to industries. They work proactively and try to bring the best for their clients. Hiring agencies to stay in the loop with the industries and keep them informed about current market status, talents available, etc. While the in-house recruiters need to work only when they have any vacancy.


If you are also looking for a job recruiting agency for your company, then we assure you that there is no better option than Vijeta Placements. Their motive of happy clients and happy candidates prove fruitful for both the candidate and the company. Vijeta placements deal with recruitment consulting, mass hiring, placement consulting, managerial hiring, and other related services. Vijeta Placements is a trustworthy name and is known for its seamless recruitment process, quality concentrated sourcing, and intensive follow-up. Contact us for more info.


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