23 Dec 2019

The Pros and Cons of Using Internal versus External Recruiters.

To save money, some companies use internal recruiters to fill their openings.  When conducting the financial analysis to decide between an internal or external recruiter, make sure that you consider the time it takes to fill the position. 

Calculate how much it costs your company to leave a position open for an extended period, and consider this in your financial evaluations.  


This article will examine the pros and cons of using an Internal vs. External Recruiter.


Let’s first look at the advantages of using an internal recruiter:

  1. Most internal recruiters have a base salary and very limited bonuses or commissions, which allows a company to hold down the cost of recruitment.  

  2. Internal recruiters have a better chance of understanding your culture since they are employees.

  3. Internal recruiters can help with the interview process because they are physically in your company headquarters.

Now let's look at some disadvantages of using internal recruiters:

  1. Recruiters with base salaries and small bonuses or commissions are not as motivated as recruiters with 100% commission.  

  2. Internal recruiters are easily overwhelmed by the number of searches they are assigned. Organizations that use internal recruiters usually assign 10-15 searches per recruiter. Connexis Search Group only assigns two to three searches per recruiter to give them the time to dive deep into each search. 

  3. Internal recruiters must rely on passive methods to source candidates. Due to their heavy workload, internal recruiters do not have time to pursue passive candidates.  Recruiting passive candidates involves tracking down candidates who are difficult to find and not easy to engage in conversation. It takes a lot of research time and time to find this person's contact information, not to mention the time it takes to convince passive candidates to engage in conversation about another opportunity. 

  4. Internal recruiters can become territorial and will not seek outside help when needed. Some internal recruiters feel their job will be in jeopardy if they ask for outside help on a search.  

How do things change when using an external recruiter? 

Pros of using an external recruiter: 

  1. External recruiters are not paid until they deliver a candidate that you hire. Since most external recruiters are 100% commission, they desire to fill your open positions and will work tirelessly. 

  2. External recruiters use more aggressive techniques to find candidates. This is especially critical in economies where there are not enough candidates to fill all the open positions. External recruiters will call companies, and source candidates who they believe would be a good fit for your company. Internal recruiters are too busy and not trained in these more aggressive techniques. They tend to rely on job postings, referrals, and candidates submitting resumes through companies’ websites.

    For example, CSG places hard-to-find candidates, such as field application specialists, medical science liaisons, oncology sales reps, genetic counselors, molecular pathologists, bioinformatics scientists, geneticists, and more. Most candidates in high demand realize they do not have to post on resume sites or pursue other opportunities. They're not unhappy with their current company and are not actively looking, so these candidates must be sought out and pursued. 

3. External recruiters focused on your niche serve as consultants to your business. Since they work with many other companies like yours, they have industry knowledge that can be invaluable. 

Drawbacks of working with an external recruiter: 

  1. Sometimes a positive can also have a negative associated with it as well. For example, recruiters who do not have base salaries are more aggressive than base salaried recruiters. If you're working with the wrong recruiter, they may send you unqualified candidates due to their sense of urgency. The way to avoid this is to ensure you're working with a recruiter who values their reputation.

  2. Using an external recruiter may cost you more per hire than an internal recruiter, but to get a true idea of your cost, keep in mind that you must factor in the expense of leaving a position open. 

Senior executives must be informed about recruiting activity and understand why positions are not being filled promptly. I l. I realize that cost must be weighed when considering external recruiters, but if those positions are critical to the company, then using an external recruiter could help solve your problem.

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