8 Jan

[Infographic] Hiring in House vs. Using a Recruiting Agency

Posted by John Brandwagt

One of the most common debates about the hiring process is whether you should keep it in-house or send it out to a recruiting agency.

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Which is really better? Like everything, both methods have their advantages. Your unique hiring needs might mean there’s an obvious choice.


You Want the Wheel

Some people believe using a recruiting agency results in a loss of control. If you turn hiring over to outsiders, you’ll have less say about the people you hire. Don’t forget you still have full control over hiring decisions. The recruiters can make recommendations, but you ultimately have the final say.

You have less control over the procedures and strategies the recruiter uses. A good recruiter involves you in strategy planning and discussions about how they’re going to recruit for you.

An obvious advantage of keeping hiring in-house is you have full control of the hiring process from start to finish. You’ll be the one initiating strategy reviews and discussions about procedures.


You Know the Company

Another issue people point to when they voice concerns about recruitment agencies is the agency’s lack of knowledge. It may makes sense; outsiders don’t know your company like you do.

Your expansive knowledge of company values and culture makes it more likely you’ll hire people who fit well with your company. It’s one reason you might decide to keep hiring in-house.

Good communication can alleviate this concern if you do team up with a recruitment agency for your hiring needs. Your recruiter has a better chance of finding the right people if you spend the time working with them as a partner.


You’re Risk Averse

Hiring someone new is a risk. You might think you’ve found the best person only to realize they don’t fit with your corporate culture. If you only hire a few times a year, you run the risk of not being able to find the people you need when you need them.

Hiring often seems like a slow process because your in-house procedures aren’t well-oiled machines. They’ll get the job done, but it may not be the most efficient or effective way of getting someone new on the team.

By contrast, recruiters hire for clients every day – this is their career! As a result, their processes are much smoother, which usually means a more efficient hiring experience. Better yet, you can safeguard your investment by adopting the temp-to-perm hiring model. This method allows you to “try before you buy.”


Cost Is a Concern

It’s no secret turnover costs companies a lot of money each year. You’ve invested time and money in each of your employees. When someone leaves, you have to invest in a new employee. In addition to the costs of hiring, there are also the costs of training. The longer your hiring process takes, the more it costs you in lost productivity.

Hiring mistakes also cost you. If you hire someone and they leave soon after, you’ll be back to square one. The longer the position remains unfilled, the greater your loss of productivity.

Working with a recruitment agency can minimize your costs. You get someone into a role sooner since the hiring process is more efficient. This minimizes productivity losses. The recruiter’s process also minimizes your risks of needing to hire again quickly. You’ll likely get the right person on the first try. If things don’t work out, the recruiter can help you quickly fill the position.

In short, in-house hiring may be the right choice for some. Working with a recruitment agency is probably a safer bet for the majority of hiring managers. Call on a recruiter’s expertise, expanded network, and tried-and-true techniques to find the people you need.


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John Brandwagt

John is a Practice Leader at Inteqna. He’s been working in IT Search in Calgary since 1997. He works best with selective job seekers—those who excel at what they do and enjoy their current jobs. Since they don’t have time to look for themselves, he helps them find their dream jobs. From a client perspective, he helps organizations find the talent that will propel their business. John is involved in several of Calgary’s technical user groups and has held board roles in non-profit groups. He is a single dad of four boys who try to beat him at every physical activity from hiking to rugby.

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