Should you hire external recruiters?

Your CEO is on your back, the latest funding round has come in and the message is clear. To diversify our revenue streams, we need new talent, and fast. 

The only challenge is your recruiting team are already at full tilt handling backfills and the pre-existing open roles.

So what to do? Grow your internal team, or hire in externals.

There is a time and a place for each but how you approach it will impact your business’ growth trajectory, culture and finances.

When to hire temporary external recruiters?

1. Scaling quickly: you are in hyper-growth and your team just cannot scale to meet (1) the number of roles to fill and (2) the time those roles need to be filled in
2. Specialist / niche roles: externals with industry specific networks and expertise will be worth their weight in gold here. Access to passive candidates is something it will be extremely difficult to cultivate internally when you are a smaller business 
3. No dedicated talent acquisition / recruitment team: don’t have long term demand for an internal, bridge the gap with externals
4. Short term hiring bursts: you have a seasonal workforce that you need to ramp up every year or you need to build a new team rapidly for a new product line

When to utilise your existing talent acquisition team and grow them organically?

1. Hiring to build a tight knit company culture: an internal team will have a much stronger understanding of the nuances they are looking for in candidates who will match the company’s requirements
2. Ongoing hiring needs: hiring requirements are steady but heightened from what they were
3. Develop employer branding: few things are as persuasive when your first interaction with someone in the company is with someone who clearly loves working there. Your internal team will be able to position the company in a stronger way to candidates
4. Long term cost efficiency (in theory): generally your internal team will come with a lower cost, however your focus should be on the relative return on investment of your internal team’s performance vs that of an external

How to increase the likelihood of success from using external recruiters?

• Externals cost more. However, make sure you understand their cost relative to the number of new hires they actually make. The best metric here is the cost per hire which you can also compare to your internal team 
• Onboard them properly, as though you were onboarding a new hire, they are there to represent the company so make sure they are able to do it well
• Hold them accountable to their hiring metrics. Make sure you have an objective and transparent way to ensure you are getting value for money (this is very different to being cheap)

In Summary

Choosing between temporary external recruiters and an internal talent acquisition team depends on your company’s current phase, hiring goals, and budget. Temporary external recruiters offer flexibility, expertise, and speed for rapid growth, niche roles, or fluctuating hiring needs. Whereas an internal team will offer a deeper grasp of your company culture, longer term relationships with hiring managers and greater control over the process. Always though ensure you know your cost per hire based on the performance of your internals vs externals talent acquisition team to maximise your return on investment.