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Recruitment services 8 min read

When to use a recruiter, and when to hire direct

Most roles do not need a recruiter. Some genuinely do. A practical test for which is which, and what each engagement model actually includes.

The decision to bring in recruitment support is usually made badly, in both directions. Some employers use an agency reflexively for every role, including ones that would have filled themselves from a decent advert. Others refuse on principle, spend four months failing to fill something specialised, and absorb a cost far larger than the fee they avoided.

The useful question is not whether recruiters are worth it in general. It is what a specific role needs that you cannot currently supply.

Run it yourself when supply is healthy

If a good advert on the right channels produces a workable field within two weeks, you do not need help. You need a clear job description, somewhere to post it, and a process that does not lose people.

Roles that usually fill directly: most junior and entry-level positions, roles with a large local candidate pool, roles where your employer brand is genuinely known in the relevant community, anything where your existing talent pool or your team's networks are likely to produce candidates, and repeat hires into a role you have filled before.

The infrastructure this requires is modest. A careers page, distribution to the boards, and an applicant tracking system so nobody falls through a gap. Most employers over-estimate how much more than that they need.

Bring in support when one of four things is true

The people you need are not looking. This is the strongest case. For genuinely scarce skills, the best candidates are employed, not browsing, and not reachable by advertising. Filling that role requires someone to approach people directly, which is time-consuming, needs a particular skill, and does not happen alongside a day job.

You do not have the time and the vacancy is costing you. A role sitting open has a real cost: work not done, pressure on the people covering it, and sometimes revenue directly. If that cost per month exceeds the fee, and running it yourself means it stays open three months longer, the arithmetic is not close.

You have run it and it has not worked. Two rounds of advertising with no viable shortlist is information. Something is wrong with the reach, the proposition, or the definition of the role, and continuing the same approach a third time is not a plan.

The hire is confidential. Replacing someone who is still in post, or hiring into a role you are not ready to announce. You cannot advertise that, and a third party running it is the only practical route.

The engagement models, and what they actually cover

The terminology is used inconsistently across the market, so ignore the labels and check the scope.

Advertised selection. They write and place the advert, manage applications and give you a shortlist. No proactive approach to candidates who have not applied. Appropriate where supply is reasonable and what you lack is the time to manage the process rather than access to people.

Contingent recruitment. An agency works your role alongside others, is paid on placement, and typically also sends your role's candidates to other clients. The incentive is speed and volume. It works acceptably for roles with reasonable supply, and poorly for anything requiring sustained effort, because the agency rationally prioritises whichever of their roles will close fastest.

Engaged or retained search. You commit commercially, they commit dedicated effort, including proactive approach to people not applying. Appropriate for scarce, senior or confidential roles. The commitment on both sides is the mechanism: it is what makes sustained work on a difficult role rational for the recruiter.

Recruitment process outsourcing. Some or all of your hiring function run externally, usually at volume or for a defined programme. Appropriate for high-volume or seasonal hiring, or when you are scaling faster than you can build an internal team.

How HRM8 structures it

HRM8's Recruitment Services are built as a cumulative ladder, priced fee-for-service rather than as a percentage of salary at the lower tiers, so you know the cost before you commit.

Shortlist, from US$990. The role is posted and a shortlist is produced. No proactive sourcing. This is the tier for roles with reasonable supply where what you need is the screening done properly.

Recruit, from US$3,490. Everything in Shortlist, plus the process managed through to offer.

Search, at 10% of salary with a minimum fee applying. Everything in Recruit, plus targeted market search, meaning direct approach to people who are not applying.

RPO, custom, for high-volume hiring, scoped per agreement.

Two things are worth knowing about how this differs from a traditional agency engagement.

The recruiter works inside your ATS. Not alongside it, and not in their own system with a summary emailed over. Every candidate, note and score sits in your account, and it stays yours when the engagement ends. That is the difference between buying a shortlist and building a hiring asset.

Assessment is built in rather than charged on. Shortlist includes an AI interview job pack covering ten interviews. Recruit and Search each include an AI interview pack and a reference check pack. The AI interviews inform the recruiter's screening, and the recruiter and the employer own the shortlist decision. Nothing is auto-rejected.

Detail is on the Recruitment Services page.

Judging a recruiter properly

Whoever you engage, the questions that separate a useful partner from an expensive job board are consistent.

"Talk me through how you would find people for this role." A real answer describes where those people currently work, what would make them move, and how they would be approached. A weak answer describes a database.

"What will you tell me that I do not want to hear?" Good recruiters push back on the brief, because most difficult roles are difficult for a reason that sits in the specification, the pay band or the proposition. A recruiter who agrees with everything is planning to send you whatever they find.

"How many roles are you working at once?" Relevant on contingent engagements. Yours is competing for attention.

"Who is actually doing the work?" The person in the meeting is sometimes not the person doing the search.

"What happens to the candidate data?" If it lives in their system, you are renting access to your own pipeline.

And notice whether they ask you good questions. A recruiter who takes the brief without interrogating it has not understood the role, and the shortlist will show it.

Where the cost genuinely sits

Compare properly. The visible cost of a recruiter is the fee. The costs of doing it yourself are less visible and frequently larger: the hours spent by people whose time is expensive, the advertising, the assessment tooling, and the cost of the role staying open.

The cost that dominates both, and that almost nobody includes, is the cost of the wrong hire. Replacing someone who did not work out means the original cost again plus the cost of the gap, the lost productivity and the disruption to the team. Any approach that improves your odds materially is cheap against that number.

This does not always favour using a recruiter. It usually favours running a better process, whichever route you take. What recruitment costs sets the numbers out.

Common questions

When should you use a recruiter?

When the people you need are not actively looking, when the vacancy is costing you more per month than the fee, when you have advertised twice without a viable shortlist, or when the hire must be confidential.

What is the difference between contingent and retained recruitment?

Contingent means the agency is paid on placement and typically works your role alongside many others. Retained or engaged means a commercial commitment on both sides, which buys dedicated and sustained effort including direct approach.

Is it cheaper to hire without a recruiter?

Sometimes. Count the full picture: internal hours, advertising, tooling, and the cost of the role staying open. Then weigh both against the cost of a wrong hire, which usually dominates.

Can a recruitment agency use HRM8?

Agencies can use HRM8 to hire their own staff, but the platform is direct-employer-only and cannot be resold to service external clients.

What should you ask a recruiter before engaging them?

How they would find people for this specific role, what they would push back on in your brief, how many roles they are working at once, who is doing the actual work, and where the candidate data ends up.

The takeaway

Run it yourself where advertising produces a real field within two weeks. Bring in support when the people you need are not looking, when the open role is costing more than the fee, when two rounds have failed, or when it must be confidential. Then judge the recruiter on how they describe finding people, not on their database.