Outside Recruiters Vs Internal Recruiters

When a company has a vacancy in a key position, they have a few options for how to go about filling that spot. One of those options is to use a recruiter. Just like in sports, a recruiter’s job is to seek out top talent and encourage them to work on a new team. Some small to midsize businesses use internal recruiters, while others opt to hire outside recruiters to find top talent. Both come with their own unique set of benefits and drawbacks, and understanding all of them can help you decide which hiring strategy is right for your Los Angeles business.

How Recruitment Works

Whether you hire an outside staffing agency to recruit new employees for you, or you use an in-house recruiter, the methodologies for recruitment are very similar. A company puts together a detailed description of their ideal candidate, and searches the industry for potential candidates. Some of these candidates may not be active job seekers, which can make them difficult to find. The goal of internal and external recruitment is the same: to find the right person for a specific position in a timely manner, without jeopardizing productivity.

What Is An Internal Recruiter?

An internal recruiter is someone you hire to work for your company. They are a traditional employee whose main goal is to understand the values and mission of the company and fill vacancies with qualified talent when they arise. An in-house recruiter handles all of the responsibilities associated with finding new employees for key positions.

Benefits Of An Internal Recruiter

One of the benefits of using an internal recruiter is that they know the core values and needs of your company from the inside. They know the company’s strengths and weaknesses, and have a clear understanding of the company culture.

An internal recruiter can be a more cost effective way to find top talent. Many small,mid size, and large businesses in the Los Angeles area that are working on a limited budget do not have the funds to hire a professional headhunter to help them fill their vacancies. If traditional marketing efforts have failed, using an internal recruiter can help seek out qualified workers to complete your team without taking a lot from the company budget.

Drawbacks Of An Internal Recruiter

One of the drawbacks to using an internal recruiter is that their reach is limited. They may not have the same resources as a staffing agency to find the right people for the job. They also work on a traditional 9-5 schedule, which means they aren’t searching during the evenings or on the weekends, which is when job seekers are the most active. If an internal recruiter reaches out to a potential employee on Friday afternoon, it could be 2-3 days before they can resume communication, and sometimes a job seeker has already moved on by that point.

Internal recruiters do not have access to the same talent pool as recruiting agencies do. These pools take time to build, and a brand new internal recruiter may have a limited network to work with.

If you are hiring for key positions or top management positions, it is important that the recruiter has in-depth knowledge of what these roles entail. While an internal recruiter may be able to seek out people qualified for entry level positions, they may not be as familiar with the expectations and responsibilities for higher-level positions.

What Is An External Recruiter?

An external recruiter is a third party source that specializes in finding talent and filling vacancies in a wide range of industries. External recruiters are used in the construction, tech, hospitality, industrial and sales industries. These staffing agencies utilize a broad network of talent and innovative resources to recruit job seekers for specific positions.

Benefits Of An External Recruiter

An external recruiter has one job: to understand your company’s needs and work tirelessly to find the right candidate for the job. They are constantly in communication with job seekers looking for placement. Working with an external recruiter increases the chances that a company will be connected with the right candidate.

Recruiters specialize in filing high demand or hard to fill positions. Their in-depth knowledge of what these high level postisin require allows them to filter their searches carefully. External recruiters work with an established pool of candidates, so the candidates they bring to the table have already been pre-screened and have most of the qualifications you are looking for.

External recruiters aren’t limited to traditional working hours. They often work in the evenings and on weekends to connect with job seekers when they are the most active. Many staffing agencies offer flexible pricing structures that can be customized by industry, positions needed, and volume of hires. This allows construction, tech, industrial, and accounting companies in the Greater Los Angeles area to work recruitment into their budget.

Drawbacks Of An External Recruiter

Some may say that recruiters don’t have a personal connection to a business. Since they’re an outside source, some may not take the time to learn about the inner workings of the company and really listen to their goals. An external recruiter may take longer to understand the company culture as an outsider.

It usually costs more to hire an external recruiter than to work with an internal recruiter. Some recruiters make money by taking 10-20% of a hired position's annual salary. This makes it possible for less qualified recruiters to worry more about filling a position than filling the position with the right person. Some start-ups feel that they don't have the funds to pay for a top-performing recruiter, but end up paying the same amount, sometimes more, in turnover fees associated with rushed hiring.

External recruiters have a significant advantage over internal recruiters, as they have the right incentive and resources to find the best candidates but there is a fee for access to top talent.

The Takeaway

Hiring the right people into the right positions is the key to success. Spending time and money on effective hiring strategies can mean the difference between productive, long-term employees and high turnover rates. Internal recruiters may have the inside scoop when it comes to who to hire, but external recruiters have access to top talent, and this extensive network can be worth the cost. Not to mention, outside recruiters work on contingency that they fill a position versus and inside recruiter that you'll pay a salary to. An outside recruiter has to perform to be paid, and there's no better incentive to meet your requirements than that.

Want to learn more about how to attract and recruit top talent to grow your business? Connect with the top recruitment agency in Los Angeles today!