Human Resources vs. Recruitment Agencies: Which is Better for Hiring?

Human resources, or “HR” as it is more commonly called, is a department within or outsourced by a company that is in charge of the employee lifecycle— from hiring to firing. This is one of the most used types of services by businesses of all types and sizes, and one of the most well-known. 

On the other hand, many people are unaware of what it is that digital recruitment agencies do. While both HR firms have recruitment duties, HR companies typically have more duties. Here’s a look at some of the benefits and shortcomings associated with each type of business.

Pros and Cons of HR Firms

Pro: Relieves the Burden of Hiring

As mentioned above, hiring an HR firm will take care of the entire employee lifecycle for you, which includes hiring, onboarding, training, promotions, and firing. Some HR firms will even recruit and interview candidates for employment for you. The process of hiring new employees is a long and tedious task, so you’ll have more time to focus on your business once you’ve found the right HR firm.

Con: You Lose Personal Control

One downside to outsourcing HR, as with outsourcing any department of your business, is that you lose a lot of control over that part of your business. The HR firm you hire will have full control over everything that relates to your employees, including employee salaries and raises. You’ll have little to no say in this area of your business once you outsource it.

Pro: Legal Compliance Guaranteed

On the other hand, your company will be in complete compliance with all of the legal aspects regarding your employees— if you choose a reputable HR firm. The more employees you acquire, the more important it will be to comply with employee regulations.

Con: Added Time and Expenses

Although having an HR firm will save you the time and money it will take to hire employees on your own, you’ll initially have to spend time and effort on finding the right firm. Implementing a successful HR department will take even more time and money if you choose to keep it in-house and hire a team, versus outsourcing to an HR company.

Pros and Cons of Recruitment Agencies

Pro: More Expertise in Recruiting

A digital recruitment agency has more expertise in recruiting employees than most HR firms have. Even though most HR firms specialize in the entire lifecycle of an employee, the recruitment phase is one of the most important tasks in hiring, and can alleviate some of the other issues that you may deal with when hiring employees through different routes. An advertising recruitment agency takes the time to find the most qualified candidates who are going to bring the most value to your company, which can help reduce training time and employee turnover. HR firms aren’t usually this thorough in finding the best talent.

Con: May be More Expensive than HR

One downside is that hiring a recruitment marketing agency may initially be more expensive than hiring an HR firm. This is because recruitment agencies use more resources to find people, whereas HR firms typically don’t. However, exact pricing will largely depend on the different companies you look at, all of the services they offer, and which specific services you will need. So a recruitment agency may very well be more affordable than an HR firm.

Pro: Saves Time and No Extra Expenses

Using a digital recruiting agency saves more time than using an HR firm, and will also save you more money in the long run. Because recruiting agencies have more expertise in finding the most qualified candidates, they’re also able to create a talent pool (group of qualified individuals) for your company that will bring you the best talent in 24 hours or less. Not only are these candidates qualified, but they have been screened and meet all of your requirements for employment. Where HR typically only pulls from a group of active candidates (those actively seeking employment), recruitment marketing can widen this audience to passive candidates (those who are not actively seeking employment). 

Both HR firms and recruitment agencies will alleviate the pressures of finding employees on your own, but recruitment agencies really work towards finding the best fit for your specific company that extends beyond skills and experience. Some recruitment agencies may even offer services to help you with other aspects of the employee lifecycle. Overall, you have to choose which service best suits the needs of your business. If you need entry-level employees, then HR may be more beneficial, but if you want more skilled employees, look into recruitment marketing.

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