The Differences Between Agency Recruiters and In-House Recruiters
The recruitment process is incomplete without the discussion on in-house recruitment versus an agency recruiter. Both have their pros and cons. The choice depends on the company goals and their resources.
Growing companies usually need expert assistance and guidance to manage their recruitment process, especially when there are multiple roles to fill, and they lack the in-house expertise or resources to handle this specialized work. Such companies look for the services of an agency recruiter who is required to take care of the hiring process, i.e., write job descriptions, source candidates, arrange interviews, and prepare employment offers.
While some companies have reached their set milestone and now looking to establish their own HR department and work on their long-term hiring objectives, then the organization can use an in-house recruiter to manage all the hiring responsibilities or outsource the efforts to a recruiting agency.
So, what do agency recruiters and in-house recruiters mean?
Let’s define both types of recruiters.
Agency Recruiters: Agency recruiters are experts in finding, screening, and attracting applicants for multiple positions. The agency owns the entire talent acquisition process from end to end, including job advertisements, reviewing resumes, identifying candidates who may not be actively looking for work, interviewing candidates, and discussing options hiring managers to find the right fit.
In-house recruiters: In-house recruiters work in-house (for the company), sourcing candidates for multiple roles within the company.
It seems like they do the same job, but there are some significant differences between them. Let us dive into the blog to decide which option is better for you.
Sales Focused vs. Talent Focused
Agency recruiters have a more sales-focused mindset, often allowing them to get their job done quicker. They are highly competitive and focused and will leave no stone unturned in their search for job-seeking candidates or candidates that were not actively looking.
Hiring candidates across multiple industries gives them a better understanding of the recruitment landscape, which can also mean the agency has less expertise in some niches.
In-house recruiters are more focused on the talent aspect of recruitment. As they work in-house, they will often better understand what it takes for a candidate to fit a role.
With the quality of hires foremost in mind, they can take longer to find suitable candidates. Still, the upside is that employee retention stats are often better when in-house recruiters carry out the hiring.
Technical Understanding vs. Organizational Understanding
Many recruiting agencies specialize in hiring for jobs. They understand the required skills and know how to identify candidates with suitable backgrounds.
As the hiring agency, they work on a high-priority recruitment drive since they do not need to spend much time understanding what the hiring manager is seeking in candidates.
In-house recruiters focus on hiring for various roles across the different departments in their company. They will always have a deep knowledge of their company's values and culture and how every candidate may fit. And if the company has long-term growth plans, the recruiting team can plan and execute a detailed hiring roadmap that ensures the right roles are filled correctly.
Compensation
Agency recruiters get a basic salary, but most of the money they earn is commission-based, which makes them highly competitive. As a recruiting company, you will need to cover the cost of this commission and the agency’s cuts.
Yes, agency recruiters are a tad expensive compared to in-house recruiters, but this is offset because you need the recruiter for only as long as you have vacant positions to fill.
In-house recruiters may earn less in the short term but keeping a team on the payroll for a long time will no doubt cost more than hiring an agency for a specific recruitment drive.
Speed vs. Precision
The process of agency recruiters is speedy. They have all the databases of candidates ready to be contacted. They present clients with a few candidates soon after they enter into an agreement and sign a contract. They help your company fill your role so they can get paid and move on to the next position.
In-house recruiters tend to be more meticulous. Before posting a job description, they want to meet with the hiring manager to understand the exact role requirements. Then they will collect candidates' data from multiple sources and screen their educational background before scheduling interviews.
In-house recruiters better understand the company's work culture and what it takes for a candidate to fit in their company successfully.
When to choose an agency recruiter?
· Companies that need to fill a position quickly do not have time to source, screen, and interview multiple candidates.
· When a company is hiring for a technical job and needs a recruiter with a deep understanding of the job role.
· When companies are only concerned with skills and experience when hiring.
When to choose an in-house recruiter?
· When a company has a transparent work culture and wants to hire employees who fit in with the previous staff.
· A company has long-term hiring plans and needs an internal recruiter to lead the effort.
· When a company wants a recruiter to work closely with hiring managers to identify suitable candidates.
· When a company has a definite need and budget for a regular in-house recruiter.
How do CG Recruiting Services Help you?
From the above information, you can understand the difference between in-house and agency recruiters, and you can decide which recruiter will be the best fit for your company based on your needs. If you are looking for long-term roles, in-house recruiters will be a better fit. As a full-service recruitment agency, we’re always ready to help with recruiting tasks.
CG Recruiting Services is always ready to answer your questions and help you find the ideal candidate for your company.
We support your hiring process, from market analysis to reducing your time to hire. Contact our team!