Recruiting Internally vs Using a Recruitment Agency: Which Saves You More?

In-House Hiring vs Using an Agency What’s More Cost-Effective?

When you need to hire skilled trades whether a plumber in Brisbane, a mechanical fitter in Perth, or an HVAC tech in Sydney the question isn’t just who to hire, but how.

Most businesses consider two options:

Handle recruitment internally
Partner with a recruitment agency

Both have their place, but the wrong choice can cost you time, money, and missed opportunity. In this article, we break down the true cost, time, and risk involved in each approach so you can make the smarter decision for your team.

What Is Internal Recruitment?

Internal recruitment means your business handles the entire process:

Writing job ads
Posting on job boards
Sifting through applications
Screening, reference-checking, and interviewing
Making the offer and onboarding

This approach is typically handled by a business owner, office manager, or HR staff (if you have one).

Pros of In-House Hiring

No recruitment fee
Full control over the process
Potentially more tailored communication with applicants
Useful if you have lots of free time or a dedicated HR team

Hidden Costs of In-House Hiring

While it seems cheaper on the surface, in-house hiring can create a range of unseen expenses:

Lost productivity from the vacancy
Time spent writing ads, screening CVs, and conducting interviews
Risk of a bad hire (and the cost to replace them)
Delays due to limited internal resources
No replacement guarantee if the hire doesn’t work out

It’s common for employers to spend 20–30 hours per hire when managing the process themselves often while juggling everything else.

What Does a Recruitment Agency Do?

A recruitment agency like HJ Recruitment manages the entire hiring process on your behalf. You brief us on the role, and we do the rest from advertising and screening to reference checks and offer coordination.

We deliver only pre-vetted, licensed, and job-ready candidates and if the hire doesn’t work out, we replace them for free within the guarantee period.

Pros of Using a Recruitment Agency

Saves significant time and internal admin
Faster access to qualified candidates
Pre-screened for licences, experience, and cultural fit
Reduces risk of a bad hire
Scalable you can hire 1 or 10 roles at once
Replacement guarantees provide added protection

Is It Worth Paying a Recruitment Fee?

A typical recruitment fee is 10–20% of the successful candidate’s annual salary. But compare that to:

The cost of 3–4 weeks of vacancy
20+ hours spent managing the hire
The impact of hiring someone unqualified or unmotivated
The cost of re-hiring when a new employee quits in 2 months

Many clients at HJ Recruitment tell us that the time and risk saved through agency recruitment makes the fee worthwhile especially when hiring trades where skill, licensing, and reliability are non-negotiable.

When to Recruit Internally

Hiring in-house may work well if:

You’re only hiring 1–2 people per year
You’re not in a rush to fill the role
You have dedicated internal HR staff
You know your ideal candidate and how to find them
You have time to manage advertising, screening, and references

When to Use a Recruitment Agency

An agency is the smarter choice when:

You need to fill a role quickly
You don’t have time or HR capacity
You’ve struggled to find the right candidates on your own
The role requires specific licences, certifications, or experience
You’ve had issues with past hires not working out
You’re hiring in bulk or across multiple regions

Why Trades Recruitment Requires Specialisation

Hiring trades isn’t like hiring office staff. A missed licence check or unclear scope of work can lead to major safety, legal, and project issues.

At HJ Recruitment, we specialise in trade recruitment across Australia placing licensed electricians, plumbers, HVAC techs, mechanical fitters, boilermakers, and more into permanent roles.

We understand the difference between a good hire and a great one. Our database, screening process, and industry knowledge mean we can help you build better teams, faster.

See how we work
Talk to a recruiter

Final Thoughts: What Saves You More?

Hiring in-house might look cheaper upfront but the true cost of time, delays, and risk often outweighs the savings.

If your team is stretched, your role is urgent, or you simply want the job done right the first time, working with a specialist recruitment agency will likely save you time, money, and stress.

Let us take the weight off your shoulders and deliver a result you can trust.

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