27 Feb Internal recruitment teams or external recruitment agencies – what’s best for your business?
There is no doubt that over the past 10 years we have seen more and more companies invest in internal recruitment teams. But with the recent economic issues and in particular the tech industry contracting, there are now very obvious signs why building an internal recruitment team is not best practice for many businesses.
Many companies are seeing that it just isn’t commercial viable in the long term to have internal recruitment teams and makes better sense to use recruitment agencies.
And there are several reasons to support the argument for why companies should continue to use recruitment agencies as apposed to building an internal recruitment team Here are some possible reasons:
- Cost: Having an internal recruitment team can be expensive, especially for small and medium-sized companies. It requires significant investment in salaries, benefits, training, and technology. In contrast, using a recruitment agency can be a more cost-effective option as they typically charge a fee only when they successfully place a candidate.
- Expertise: Recruitment agencies have a deep understanding of the job market and the skills required for different roles. They also have access to a large pool of candidates through their networks and databases. For small and medium-sized companies, it may be difficult to match the level of expertise and resources that a recruitment agency can offer.
- Time and Efficiency: Internal recruitment teams can take a significant amount of time to find suitable candidates, especially for specialized or hard-to-fill roles. Recruitment agencies, on the other hand, can provide a faster and more efficient hiring process. They have the resources and expertise to quickly identify and screen potential candidates, which can save time for small and medium-sized companies.
- Flexibility: Using a recruitment agency can offer more flexibility for small and medium-sized companies. They can choose to use the agency only when needed, such as for a specific project or to fill a temporary position. This allows companies to avoid the fixed costs associated with having an internal recruitment team.
- Specialization: Recruitment companies often specialize in specific industries or job roles. This means they have a deep understanding of the job requirements and can source candidates with the right skills and experience.
- Objective Assessment: External recruiters can provide an objective assessment of candidates, as they are not influenced by internal politics or relationships. They can provide unbiased feedback to hiring managers and help them make informed decisions.
Overall, while having an internal recruitment team can be beneficial for some companies, using a recruitment agency can be a more viable option for many companies due to the cost, expertise, time efficiency, and flexibility that agencies can offer.