In-House Recruiter vs. Recruiting Agency: Similarities, Differences and Tips

In House Recruiting vs Agency Recruiting Which is better ?! Explained by Recruiter!

What is a recruiting agency?

A recruiting agency is a business that handles all of the hiring and recruiting processes on behalf of another company. These businesses are solely concerned with finding candidates, building candidate databases, and matching those candidates with positions that are open at the businesses they are collaborating with. Recruiting firms may focus on a particular industry and work with numerous clients at once, such as:

What is an in-house recruiter?

An organization’s in-house recruiter is a staff member in charge of overseeing the company’s hiring and recruiting efforts. In-house recruiters source, evaluate, and interact with candidates with the help of managers and other company stakeholders. They work directly for the business, filling a range of positions in various departments.

What are the similarities between an in-house recruiter and a recruiting agency?

The similarities between in-house recruiters and agency recruiters include:

What are the differences between an in-house recruiter and a recruiting agency?

The following are the main distinctions between internal hiring and hiring a recruiting firm:

Focus on selling

Agency recruiters must be effective salespeople. They want to make money for their company as a recruiting agency employee by placing candidates, which is also how they usually get paid. This involves multiple layers of persuasion, including:

Because they work with numerous clients, recruiting firms have less invested in your business. Less emphasis is placed on a long-term fit and more on filling the position.

Internal recruiters might be less likely to employ sales strategies in their work. Since they are more familiar with the business than an outsider, they consider a wider range of issues. In-house recruiters can assess how candidates mesh with the culture and long-term goals of the business. Given that their jobs depend on the caliber and viability of the applicants they bring to the company, this might lead to more direct and honest conversations with hiring managers and applicants.

Sense of urgency

Agency recruiters can earn more by filling more positions. Therefore, they are motivated to fill your open jobs quickly. Instead of looking for new applicants, they might choose to pull candidates from their database to speed up the process. They may already have candidates in mind when discussing your company’s needs because they are experts who deal with applicants on a daily basis, which can expedite the hiring process.

Typically, internal recruiters spend more time finding, reviewing, and evaluating candidates. They are more invested in the company’s success and that of new hires. In-house recruiters may use a more thorough approach to hiring that includes:

If their initial picks are not a good fit, internal recruiters may even repost jobs because they are less driven to fill positions quickly.

Technical knowledge

Because many recruiting firms focus on a particular industry or type of position, their recruiters frequently have in-depth knowledge of the qualifications needed for these roles. They might not need to explain the nuances of the position to hiring managers and other stakeholders given their level of familiarity.

On the other hand, internal recruiters are tasked with finding applicants for any open positions within their company. This frequently leads to greater general knowledge of hiring procedures without as much expertise specific to each position. Internal recruiters, however, do have knowledge of your company’s values and the kinds of personalities and backgrounds that will best complement your team members.


In general, hiring a full-time internal recruiter is more expensive than using a recruiting agency for your hiring needs. Clients of many recruiting firms are charged a percentage of the new hires’ salaries. Before you need to fill a position, you don’t need to pay a recruiting firm.

Employing an internal recruiter entails the same costs as hiring an employee, such as a salary and benefits package. In-house recruiters must be paid even when there are no open positions.

Tips for choosing a recruitment method

You can use the following advice to decide whether to hire an internal recruiter or work with a recruiting agency:

Define your companys needs

To decide what recruiting approach is best, take into account the hiring needs your business has. For instance, if you only need to fill a single, specialized position, an agency might be a better fit. If you’re hiring a director of employee relations, an internal recruiter may have more knowledge about the best candidate.

Determine your budget

Prior to entering into a contract with an agency or extending an offer to an internal recruiter, establish a recruiting budget. Your budget may determine what is currently possible. Working with a recruiting firm might only be financially feasible for three months. Alternatively, you might need to find a part-time internal recruiter.

Think about your companys future

Discuss the company’s direction with the management of your business to gain a better understanding of potential hiring requirements in the future. This can assist you in choosing a tactic that will be effective both now and in the future. For instance, if your business intends to grow over the next two years, there will probably be a lot of positions to fill and enough work to warrant hiring an internal recruiter.


What is an in-house recruiter?

In-house recruiters are generalists when it comes to job recruitment. They lack the expertise or technical knowledge necessary to fill particular job positions. Their main responsibility is hiring for numerous positions across various company departments.

How do inhouse recruiters get paid?

A candidate’s first-year base salary is typically used to calculate the commission, but it may also be a flat fee provided by the client (the business where the candidate is placed). This structure is generally established by the client.

What is an internal recruiter called?

An organization’s in-house recruiter is a staff member in charge of overseeing the company’s hiring and recruiting efforts.

Can you work from home as a recruiter?

The contact for a company’s job openings is a corporate recruiter, also referred to as an internal or in-house recruiter. They are responsible for disseminating the job posting, accepting resumes and applications, locating candidates, and reducing the number of applicants.

Is internal recruiter a good job?

While some remote recruiters work for recruiting agencies and in offices, many are able to do so from home. Since most recruiting can now be done online, virtual recruiters are becoming more and more popular.

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