What’s best for your startup? Embedded Talent vs. Recruitment Agency vs. In-House Recruitment

IN-HOUSE RECRUITMENT TEAM

Pretty self-explanatory: Your own in-house recruiter or recruitment team.

Fee: they are full-time permanent members of staff.

✅ Pros

Cost-Efficiency

Over time, this option proves to be cost-effective, especially if you have a clear hiring outlook for the year, the resources to recruit and onboard in-house recruiters, and a substantial hiring volume that justifies the long-term investment.

Enhanced Employer Branding

With complete oversight and control over candidate communication and experience, you can safeguard and strengthen your brand image.

Improved Learning and Growth

With this, your processes become more refined, talent pools expand, hiring managers become more empowered, and your overall talent acquisition function matures.

❌ Cons

Limited Flexibility

Committing to the long term means your team may not adapt as swiftly to fluctuating hiring demands as a third-party provider could. If downsizing becomes necessary during uncertain times, it may adversely affect your employer brand.

Financial Risk

There are no guarantees or rebates; if there’s no success, there are no hires, yet you’re still responsible for the costs. In London, the average salary for an in-house recruiter is £42,500, and a LinkedIn recruiter license adds another £8000 annually. Even for a mid-weight position, the investment is significant.

Pace

When factoring in onboarding and ramp-up time, this option represents the slowest path to achieving your hiring goals

RECRUITMENT AGENCY

You agree to terms, you brief them, the agency sends you qualified candidates and you pay a fee when the placement is made.
‍Fee-based: on a percentage of the successful candidate’s annual salary, typically between 17 and 25%  

✅ PROS 

‍Speed 

They can move fast, as their entire business model revolves around establishing an extensive talent network within their specific industry. This means they likely have candidates at the ready, ensuring a faster turnaround compared to other alternatives.

Familiarity 

It’s been a traditional method of recruiting for many years and We’re well-versed in its workings and are willing to embrace both the highs and lows of the process, provided we secure the right hire in the end.

Flexibility 

Utilize their services as needed, no long-term commitments and can be scaled up or down with your hiring demand

Less financial risk

Agencies only earn a fee when a successful hire is made, meaning you only incur costs upon achieving results. Moreover, they often incorporate rebate periods into their agreements. In the event that the hire doesn’t pan out and needs to be released during the probationary period, they’ll refund a portion of their fee.

❌ CONS

‍Cost Variability

The fee is determined by the eventual salary of the successfully placed candidate, rather than aligning with your planned budget for the role. Often, these figures can differ significantly, posing a challenge for accurate forecasting

Potential Conflict of Interest

Agencies receive compensation based on a percentage of the hired candidate’s base salary. This means that the higher the salary, the greater the commission.

Employer Branding

When it comes to how they portray your brand to the market, agencies often operate in a mysterious “black box,” leaving you with limited control and visibility into the messages they use.

Restricted Talent Pool Growth

Every candidate an agency submits comes with an associated fee for at least a year, should you decide to hire them. Assuming the agency presents multiple candidates for your positions, they effectively create a talent pool that is inaccessible to you, severely impeding your ability to transition to a direct hiring model.

EMBEDDED RECRUITMENT

‍A recruitment company that provides services via an embedded recruitment partner within your business for a set period of time. 

Fee: Typically charge a set monthly subscription on a rolling basis.

✅ Pros
 Tools and Technology

An Embedded partner provides a comprehensive suite of essential tools for the hiring process, including LinkedIn recruiter licenses, email sequencing software, and candidate databases. These tools empower you to make more informed recruiting decisions.

Cost-Effectiveness

For a similar investment as hiring a freelance recruiter, you gain access to a team of professionals. Additionally, with fixed costs, you can hire for multiple roles, achieving a cost per hire equivalent to having your own dedicated team.

Efficiency and Speed

Embedded partners like Crowhite excel in streamlining the hiring process. Specialists in all areas ensure that each stage of hiring, can be executed concurrently. For instance, while sources conduct outbound campaigns, talent partners focus on ensuring smooth operations.

Learning and Expertise

Collaborating with an embedded partner provides the advantage of working with a diverse portfolio of clients, benefiting from the collective wisdom and strategies developed over time. This leads to the cultivation of a more seasoned talent acquisition function.

Elevated Employer Branding

An embedded partner actively contributes to the creation of your Employer Value Proposition (EVP), transitioning from mere brand protection to brand amplification.

Adaptability and Flexibility

You have the flexibility to adjust resources within a 30-day window, enabling costs to align with demand without disrupting service continuity.

❌ Cons

Not suitable for 1 role 

If you have just 1 hire, you’re better off briefing an agency like Crowhite.

HOW CROWHITE CAN HELP

Crowhite’s offering of Embedded and Executive recruitment ensures you get things right when you most need to. We are here to make sure you know better, so you can do better.

We attract top talent, you propel your business.

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