HR consulting vs. internal recruiting: The best strategy for tech companies

The search for qualified specialists is becoming increasingly challenging. Companies are faced with the question: should they rely on internal recruiting or seek the support of a specialized personnel consultancy to make use of the support of a specialized personnel consultancy? Both approaches have their advantages and disadvantages - and it often depends on the company's individual requirements and objectives as to which strategy is more suitable.

In this blog post, we shed light on which strategy is best suited for tech companies and how the right recruitment consultancy for managers and professionals in the tech & digital can make a decisive contribution to success. 🚀

Internal recruiting: advantages and challenges

Advantages of internal recruiting 

1. Familiarity with the corporate cultureYour internal recruiters know the company structure and culture very well. They know what kind of employees are a good fit for the company and can assess applicants more accurately in this respect.
2. Cost controlAt first glance, internal recruiting seems more cost-effective as you don't have to pay external recruitment fees. For short-term or less specialized positions, this can be a cost-effective solution.
3. Speed for simple positionsWhen it comes to less complex positions, internal recruiting can be faster due to direct access to internal databases and networks.

Challenges of internal recruiting 

1. Limited reachInternal recruiting teams often have a limited reach. They work with existing networks, which means that many potentially suitable candidates may be overlooked. Especially for professionals in tech & digital-sector, which are highly competitive, you could miss out on access to highly qualified talent.
2. High effort and lack of specializationTech positions often require highly specialized knowledge. Internal teams are often not specialized in the requirements of specific IT roles or in filling management positions in the tech sector. This is where the recruiting team may reach its limits.
3. Hidden costsAlthough internal recruiting appears more cost-effective at first glance, hidden costs such as the time spent by internal recruiters or the longer recruitment period can cancel out the initial savings.

Personnel consulting: Your advantages with specialized consulting 

Advantages of personnel consulting 

1. Access to a larger talent pool: A specialized recruitment consultancy in the tech & digital sector has access to a much larger talent pool. Through their networks, databases and active outreach, recruitment agencies can find highly qualified candidates who may not be actively looking for a job but would be open to a new challenge.
2. Time and cost savings: A professional personnel consultancy can save you a lot of time. They take care of the pre-selection, conduct initial interviews and only present you with the most qualified candidates. This significantly reduces the workload for your internal team and ensures that the position is filled more quickly.
3. Specialization and expertiseRecruitment consultancies that specialize in the IT sector know the requirements of tech companies inside out. They know what skills and qualifications are required for various positions in the Tech & Digital-sector are required. Especially when it comes to filling management positions, a executive search consultancy is a valuable support in finding the best candidates.
4. Sustainability and long-term commitment: High-quality HR consultancies such as workidentity, which is a member of the Diversity Charter pay attention not only to professional skills, but also to cultural fit. This leads to higher employee retention and lower staff turnover, as the candidates placed are better integrated into the company in the long term.
5. Career support for candidates: A good personnel consultancy acts as a career companion and supports not only the company, but also the candidates in their career planning. Thanks to this intensive support, the candidates feel that they are better taken care of and develop a stronger bond with their future employer.

Challenges of personnel consulting 

1. CostsAt first glance, the costs of an external recruitment agency appear higher than internal recruiting. However, this investment often pays off, as the position is filled more quickly and with higher quality, which saves costs and resources in the long term.
2. Dependence on external partnersWhen you choose a recruitment consultancy, you are placing part of the recruitment process in the hands of an external partner. It is important to choose a trustworthy and reliable consultancy that shares your company values and is familiar with your industry.

Which approach is better for employers?

The question of whether internal recruiting or a recruitment agency is the better approach for your company depends heavily on the specific needs and complexity of the position to be filled.

• For highly specialized IT and tech positions or leadership roles: Here is a executive search consultancy or a specialized recruitment consultancy in the tech & digital is often the better choice. The expertise and networks of such consultancies guarantee a perfect fit and offer access to talent that you would not be able to reach internally.
• For less specialized positionsIn these cases, internal recruiting may be sufficient, especially if the position needs to be filled quickly and does not require any special expertise.

Ultimately, many companies benefit from a combination of both approaches. Recruitment consultancies can cover the difficult, specialized positions, while internal recruiting is used for roles that have less specific requirements. The mix of both worlds is what makes hiring successful in the end!

Conclusion

Both internal recruiting and cooperation with a recruitment personnel consultancy have their raison d'être. For tech companies looking for specialized professionals or executives, working with an experienced recruitment consultancy in the tech & digital sector is often the most efficient and effective solution. Thanks to their larger network, specialization and professional support, they offer clear advantages.

As a member of the Diversity Charter and specialized personnel consultancy for executives we are committed to ensuring that employers find the best talent that fits the company both professionally and culturally. Whether you are recruiting internally or externally - we are your career companion at your side to support your career planning and recruiting strategies in the best possible way. 🌟