Why Large Companies Recruit In-House - And How Smaller Companies Can Do the Same
Craig Danvers
Walk into any large company, and you’ll find an internal talent acquisition team—dedicated recruiters working exclusively for the business, handling everything from sourcing candidates to managing employer branding.
Why? Because large companies know that relying on external recruitment agencies is too expensive, too transactional, and too unreliable in the long run.
Instead of paying 20-25% placement fees every time they hire, they’ve built in-house recruitment teams that give them full control over their hiring process, better long-term hiring outcomes, and lower overall costs.
But what about smaller companies? Hiring an internal recruiter might not make financial sense when you only hire a handful of people a year.
So how can smaller companies replicate the benefits of in-house talent acquisition—without the cost of a full-time recruitment team?
Why Big Companies Have Brought Recruitment In-House
The shift toward internal recruitment teams isn’t new—it’s a response to the flaws of agency recruitment. Large companies have realised that:
Recruitment agency fees are too high. Paying 20-25% of a salary per hire is unsustainable at scale. Bringing recruitment in-house creates huge cost savings.
They need control over their hiring. External recruiters are juggling multiple clients and jobs. An internal team is fully dedicated to one company’s hiring needs.
Hiring is ongoing, not a one-time transaction. Talent acquisition is more than just filling roles—it’s about building a pipeline, strengthening employer branding, and improving retention. Agencies aren’t structured to do that.
They want recruiters who understand their business. Internal recruiters develop deep knowledge of company culture, hiring needs, and long-term strategy—something external recruiters can’t match.
For large companies, having an in-house recruitment team reduces costs, increases efficiency, and leads to better hiring outcomes.
But hiring a full-time internal recruiter isn’t realistic for every business—especially those with smaller headcounts and less frequent hiring needs.
How Smaller Companies Can Replicate an In-House Talent Team
If hiring an internal recruiter isn’t financially viable, how can smaller companies gain the same advantages that big companies get from their in-house teams?
The answer: On-demand talent acquisition.
Instead of paying hefty placement fees or committing to a full-time recruiter, businesses can tap into experienced recruitment support when they need it—without long-term costs.
This approach gives smaller businesses the same benefits that large companies enjoy, including:
Cost-effective hiring – No high placement fees, no wasted spend on a full-time recruiter when hiring demand is low.
Recruiters who work for you, not for commission – On-demand talent acquisition acts as an internal hiring function, not a sales-driven agency service.
A consistent hiring strategy – Unlike agencies that work on a per-hire basis, on-demand talent acquisition builds hiring processes tailored to your business.
Full candidate ownership – No restrictions, no agency claims—you keep all the candidate relationships for future hiring.
The Future of Recruitment for Growing Businesses
Large companies have brought recruitment in-house because it’s cheaper, more effective, and better aligned with their long-term hiring strategy.
Smaller companies don’t need to rely on expensive placement fees or external recruiters who prioritise quick wins over long-term success.
By using on-demand talent acquisition, smaller businesses can hire like a large company—without the overhead of an internal recruitment team.
The best hiring model isn’t about outsourcing or bringing everything in-house—it’s about having the right level of recruitment support, exactly when you need it.