Finding and keeping top talent is critical for the long-term sustainability of any company. This is especially true today, as business leaders recalibrate after being thrown off kilter by the pandemic and the recent economic downturn. Moving forward, they’re motivated to avoid disruptive hiring mistakes.

When your company is ready to hire for new roles, you can use an in-house recruiter or work with an agency or RPO (recruitment process outsourcing) provider to meet your hiring needs. Each option offers different advantages, and the most strategic choice will depend on the unique situation of your company.

In-house Pros: An internal recruiter understands the company and its culture. They’re well placed to determine which candidates are solid, long-term fits. Because they work directly with managers to understand their current and future needs, they can develop a longer-term hiring strategy.

In-house Cons: If you’ve created a role for an internal recruiter, they’re receiving a salary and benefits regardless of whether the company needs to fill a new position. If you’ve delegated the hiring responsibilities to existing team members, this imposes on their ability to perform the job they were hired for.

Outsourcing Pros: Outside recruiters are experts in the hiring process. They have a better beat on what to offer for a competitive compensation package and salary range. Because many agencies specialize in a specific industry, they’ll understand the technical skill sets necessary to fill a role. Their systems are efficient, and they’ve built a pool of passive candidates that aren’t looking at job postings. They’ve worked with different clients, and they’ll know exactly how to work with your company.

            Outsourcing Cons: An agency may contribute to a higher turnover rate if their main objective is to fill a role. If they’re working with multiple companies, your company may not get the personalized attention it deserves, to find a solid match for its nuanced culture and long-term needs.

Four questions can help you determine which option will best meet the needs of your company.

1. At what stage of hiring is your company currently in?

Consider your hiring needs for the next two quarters. Ideally, you’re initiating the hiring process now to fill a role for a future need, because the recruiting cycle takes anywhere from 6-8 weeks. Finding the right fit for more challenging roles can take up to 12 weeks.

If you anticipate needing to fill 10-15 roles, it makes sense to use an in-house recruiter. It’s strategic to hire someone who can give your hiring needs their undivided attention.

If you have 3-4 roles to hire, it’s cost effective to work with an agency. You’re only paying for hiring services when you have a role to fill. They can also objectively help you prioritize your hiring needs, to maximize the impact of new team members.

2. How much bandwidth does your team have to contribute to the recruitment process?

The recruitment process requires a significant investment of time and resources. It can impose on your existing leaders if you delegate the hiring responsibilities to them. It’s not their expertise, and it diverts their focus from their job responsibilities.

A full-time in-house recruiter is motivated to find the best fit for the roles because they’re personally invested in the company. They also require accountability since they’re receiving a salary.

Working with a recruiting agency can save your team time and minimize stress because they’re operating within their area of expertise. It may not be cost-effective if the agency charges by the hour, or if the candidates they’re sending you aren’t in line with what you need. You don’t want to work with an agency that’s going to send you quantity over quality- you want them to do due diligence.

3. Which option will best speak to your business, culture, mission, and values?

An in-house person will have the advantage because they truly know your company inside and out, and they’re not juggling other clients.

On the other hand, a candidate will get to know your company through the recruitment process. If your company hasn’t hired anyone before, you may not yet have the structure in place to conduct thorough and efficient interviews, and this doesn’t reflect well on the company. A good agency uses a proven system to find and fill roles. They can also help set up your recruiting structures so that you’re able to hire in-house, in the future.

If you’re a tech startup or a new company, you may not yet have established a reputation. A recruiter may be a good ambassador and reach candidates that wouldn’t respond to a company they’ve never heard of.

4. Does your business have the resources to best utilize an in-house recruiter?

Agencies and RPO providers invest in technology to streamline the recruiting steps that can be automated. This frees up time for the steps that require human relationships, like interviews.

These tools help you build a data driven process, so that you can understand why candidates aren’t moving forward in the hiring process, and how to better target the candidates that best fit the roles you need. You’re able to make better informed decisions because you’re fully in the know.

Whether in-house or outsourced, the best recruiters possess a matchmaker’s skillset. They discover the right candidate for the right role, who will own the vision and help your company accomplish its mission.

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