Recruitment Agency vs In-House Hiring: Which Is Right for Your HR Role?
Your talent team knows your business. A specialist recruitment agency brings another network, a fresh market perspective and extra capacity. Which approach makes sense for your next HR hire?
In-house hiring often works well when your team has the time, tools and expertise to manage the search. An agency can help when a role needs specialist knowledge, a confidential approach or more attention than your team can give it right now. Many organisations use both.
At Samuels Donegan, we partner with employers across Australia, from businesses making their first HR hire to established talent acquisition teams tackling a tricky search.
Here’s how the options compare, and when each can work for you.
Agency vs In-House Hiring at a Glance
In-House Hiring
BEST FOR
Roles you hire for often, with a team that has capacity
COST
Job ads, tools and your team's time, with no placement fees
SPEED
Depends on your team's capacity and the market
Applicants, referrals and candidates your team actively sources
High: sourcing, screening and interviewing in-house
IF IT DOESN'T WORK OUT
You start the process again
Recruitment Agency
BEST FOR
Specialist, complex or urgent roles, and roles you rarely hire for
COST
A fee, usually a percentage of the person's first-year salary
SPEED
17 days on average for permanent HR roles, or just 2 days for temp placements.
REACH
Active and passive candidates, through established networks
YOUR TEAM'S TIME
Lower: we source and screen, you interview a shortlist
IF IT DOESN'T WORK OUT
A replacement guarantee on permanent roles
Both Together
BEST FOR
In-house teams that need extra reach or capacity
COST
Your internal hiring costs, plus agency fees for the roles you choose to hand over
SPEED
Extra search capacity to keep priority roles moving when your team is stretched
REACH
Your team’s sourcing channels, plus our specialist HR networks and targeted outreach
YOUR TEAM'S TIME
More capacity for other hiring and business priorities
IF IT DOESN'T WORK OUT
Agency placements covered by the replacement guarantee
When In-House Hiring Works Best
In-house hiring works well when you have a talent acquisition team with capacity, a steady flow of similar roles and an employer brand that attracts strong applicants. You keep full control of the process, build knowledge of your market over time and avoid placement fees.
It can get harder when your team is stretched across many roles, when the person you need isn't actively looking, or when it's a role you rarely hire for and you don't have a network to draw on. The hidden cost of in-house hiring is usually time: every week a role sits empty, the work lands on someone else.
When a Recruitment
Agency Adds Value
A hard-to-fill role. A confidential replacement. A talent team juggling more vacancies than hours in the day. These are the moments when a specialist recruitment partner can make a difference.
At Samuels Donegan, HR recruitment is what we do. We bring established relationships, current salary insights and the time to approach, assess and get to know candidates properly. You get a focused shortlist, with clear advice on what each person could bring to your team.
Our average fill time for permanent HR roles is 17 days, although timing varies with the role’s seniority and complexity. We explain our fees upfront, and permanent placements include a replacement guarantee, subject to the agreed terms.
Already have the network and capacity to manage the role yourself? We’ll tell you that too.
Using an Agency Alongside Your In-House Team
Many of the organisations we work with have their own talent acquisition team. They handle business-as-usual hiring and bring us in for specialist, complex or urgent HR roles, or when the team is at capacity. It means your team stays focused, and the hardest roles still get the attention they need.
And if you'd like to build or strengthen your in-house team, we can help with that too. We recruit talent acquisition professionals, and our Team Build service can help you set up a whole function.
How to Decide Between an Agency and In-House
How often do you hire for this role?
If it's often, your in-house team probably has the process and the network to handle it. If it's rare, an agency brings market knowledge and contacts you don't have on hand.
Does your team have capacity right now?
If your team is already stretched, an agency can take on the search without slowing everything else down.
Does the search need a wider reach?
If applications and your existing sourcing efforts aren’t bringing the right people forward, a specialist agency can add new networks and targeted outreach.
What’s the impact of leaving the role unfilled?
Consider the work being delayed, the pressure on your team and the time you’re spending on the search. Weigh those costs alongside the agency fee to decide where extra support could add value.
How much does a recruitment agency cost?
Recruitment agency fees for permanent roles are usually a percentage of the person's first-year salary, and the exact fee depends on the role and the service. Samuels Donegan explains costs upfront, before any work starts. On Demand Talent is charged as an hourly or daily rate instead.
Is it cheaper to hire in-house?
It can be, especially for roles you hire for regularly. In-house hiring avoids placement fees, but it isn't free: there are job ads, tools and, most of all, your team's time. For specialist or hard-to-fill roles, an agency can work out better value once you count the time a role sits empty.
What happens if an agency placement doesn't work out?
Samuels Donegan's permanent placements come with a replacement guarantee. If a placement doesn't work out within the guarantee period, we'll find a replacement. We'll take you through the terms before we start.
Can a recruitment agency work alongside our in-house talent team?
Yes. Many Samuels Donegan clients have their own talent acquisition team and bring us in for specialist, complex or urgent HR roles, or when their team is at capacity. We fit around your process and keep your team in the loop.
Will a recruitment agency understand our culture?
A good one will. Samuels Donegan takes a full brief on your team, your culture and what success looks like, not just the position description, and gets to know candidates as people so the fit lasts.
Working out how to tackle your next HR hire?
Tell us about the role and what your team has on its plate. We’ll give you an honest view on where we can help and what you can confidently manage in-house.
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