In-house vs. Agency recruitment - 5 key differences to keep in mind


Posted by IntroMagic Team on April 12th,2021

Even the best recruiting tools can be futile if you’ve picked the wrong approach to recruitment for your business.

Whether you choose to have an in-house recruitment team, delegate the work to a consultant, or partner with an agency, it all impacts the process of HR screening and how easily you can fill the vacancies with the right professionals.

If you’ve found yourself spending far too much time and money with little results, you may have been using the wrong method.

Each of these methods is apt for certain business types. What may work for an SME will certainly not be relevant to a large business and vice versa.

In this post, we’ve elaborated on some key differences that can considerably alter the success of your recruitment initiatives.

In-House vs. Agency Recruitment

Costs Involved

You may feel that working with an agency would be more expensive, but that’s not necessarily true. Ideally, you make a one-time payment as specified in the contract for a fixed number of services, and the agency handles all the costs incurred for the HR screening and other activities.

Depending on the duration of the contract and how frequently you want to renew it, you’ll have to allocate a budget for continuing to work with the agency. But in the long run, it’s not as financially draining as sustaining an in-house team, especially since the latter requires a lot more resources.

Starting from finding and purchasing the best recruiting tools including any video interview software, online HR software, memberships and subscriptions. Additionally, you’ll have to hire and pay a monthly salary to the human resources personnel, facilitate training and onboarding exercises for employees.

best recruiting tools

Point of Contact

The point of contact during HR screening does affect the outcome to a certain extent. In the case of your in-house team, applicants have a direct connection with your organization.

The same is not true in the case of consultancy or agency hiring because they are an indirect point of contact.

If you are wondering why this matters, let’s clarify that.

Every organization evolves in their own way, and sometimes, it may take a while for the agency to be informed about new updates and changes. This crucial gap in cognisance can lead to miscommunication between you and your recruitment agency, which inevitably affects the hiring process.

Moreover, since they act as the extended arm of your organization, if they are not well-versed in your business affairs and an applicant poses a query, they won’t be in a position to answer. And that just adds an unnecessary delay in communication.


Agencies tend to have access to relevant pools of candidates that they can tap into at a moment’s notice to fulfill your requirements.

Whereas, your HR team may have to start from scratch, utilize their personal networks, wait to receive applications, and perhaps use a video interview software to assess whether the candidate is a right fit.

You must also consider the possibility that agencies are in the business because of their expertise and knowledge of the field; therefore, they may be more effective in generating the results that you expect.

On the flip side, your in-house team is devoted to the organization. They can utilize an online HR software like IntroMagic to personalize the recruitment process.

online HR software


The in-house recruiters’ sole focus is to address the company’s needs. They are available at all times (during work hours) to adopt whatever high-priority tasks come up.

While agencies handle multiple clients at a time and speak with hundreds of applicants for HR screening. They may not always be available to allot multiple resources to any urgent requirements.

Furthermore, it would be difficult to control the process when it’s happening externally and expect a sense of adaptability if you are working with agency recruiters.

Volume of Requirement

If you have a startup firm and are preparing to scale rapidly, recruitment agencies may be your best bet. They are generally capable of handling large recruitment drives without much trouble.

On the other hand, if your in-house team is not well equipped with personnel and other resources, they may find it difficult to keep up with the momentum of scaling your business.

Medium and large-sized businesses probably don’t face this concern regularly. Therefore, for them, either of the approaches could work well if they only plan to add a handful of employees at regular intervals.

Using a video interview software enables you to minimise the distance between the hiring manager and the candidate, irrespective of whether you sign on an agency or have an internal team.


Whichever path you choose to take, there’s a lot you can learn from it. And armed with the IntroMagic software, you’ll obtain results that surpass your expectations.

Find high-quality candidates with IntroMagic. Register for free today.

About Us

IntroMagic is a company started with the mission of
enabling every candidate to find their dream role by
putting their best face forward. We also aim to help
recruiters find the best candidate by enabling
acceptance of professional video introductions that complement the traditional resume.