In-house vs outsourcing: making the right recruitment choice

What is the difference between in-house and outsourcing?

What is in-house recruitment?

In-house recruitment means your internal Talent Acquisition and HR teams handle everything related to hiring. From posting job ads and sourcing candidates to conducting interviews and onboarding new employees, all recruitment activities happen within your organisation.

This approach gives you direct oversight and makes it easy to align new hires with your company’s culture and values. However, it also comes with significant time and resource commitments. You’ll need experienced professionals, the right recruitment tools, and ongoing training to keep your internal team effective.

What is recruitment outsourcing?

Outsourcing recruitment involves working with an external provider to manage part or all of the recruitment process. This can range from hiring an agency to fill specific roles to engaging a full-service provider through Recruitment Process Outsourcing (RPO).

RPO is a long-term partnership where the provider becomes an extension of your internal team, taking full responsibility for recruitment from start to finish. That includes writing job descriptions, sourcing candidates, interviewing, and even onboarding.

By outsourcing, companies gain access to wider talent networks, specialised industry knowledge, and cutting-edge recruitment technology - benefits that are often out of reach with smaller inhouse teams.

Understanding the cost of outsourcing vs in-house recruitment

The cost of outsourcing vs in-house recruitment is one of the most critical factors in deciding which model is best for your organisation.

Running recruitment in-house involves fixed costs such as salaries, recruitment software licenses, internal training, and sometimes even overheads from maintaining a larger team. While this model can work well for organisations with steady hiring needs and robust internal capabilities, it may become inefficient if hiring is inconsistent or grows suddenly.

Outsourcing, on the other hand, typically involves variable costs, such as service fees based on the number or complexity of hires. These fees can often be offset by the efficiency, speed, and expertise an external provider brings. Additionally, outsourcing can reduce the need for investment in internal systems or staff training, saving both time and money over the long term.

It’s important to evaluate not just the upfront costs, but also the value each option provides in terms of hiring success, candidate quality, and operational efficiency.

How to decide between outsourcing or in-house recruitment

When choosing between outsourcing or in-house recruitment, consider the following:

- Hiring Volume & Frequency: Do you recruit consistently year-round, or are your needs more project-based or seasonal? Outsourcing can offer flexibility to scale up or down as needed.

- Internal Capabilities: Does your HR or TA team have the time and expertise to handle recruitment effectively, or could an external partner help you move faster?

- Level of Control: Are you comfortable delegating parts of the hiring process, or do you prefer complete oversight and involvement?

- Brand Experience: Consistency in candidate experience and alignment with your employer brand can be maintained with both approaches but may require more effort internally.

Ultimately, your decision should be guided by your business goals, available resources, and the talent landscape you're operating in.

Deciding between in-house and outsourcing recruitment is about more than just cost - it’s about finding the right fit for your business, now and in the future. If you're scaling into new regions, facing complex hiring challenges, or simply want to improve your recruitment outcomes, outsourcing could offer the expertise and adaptability you need. On the other hand, a strong in-house team can be a valuable asset for organisations looking to build and maintain a deeply aligned company culture.

At Robert Walters Outsourcing, we partner with businesses across the globe to deliver tailored recruitment solutions - whether that means fully outsourced RPO services or support on a project-by-project basis. If you’re weighing the options between outsourcing or in-house hiring, we’re here to help you make an informed decision that aligns with your goals.

Get in touch with our expert team here.