Startup Recruiting Guide
Agency vs in-house talent acquisition for startups
By Arshnoor Kohli, Founder, Vektor
Last updated
Published · 6 min read
Direct answer
Use a contingency agency when you are filling a handful of critical seats and want $0 fixed recruiting cost until start. Hire in-house TA when you sustainably fill many roles per quarter and need always-on employer branding. Fully loaded in-house TA often runs $150K to $250K+ per year before you fill a single req.
When contingency agency support beats a full-time recruiter, and when to hire TA in-house.
The crossover point
If you will open one to three critical seats after a raise, contingency usually wins on cash efficiency.
If you are continuously hiring across eng and GTM every month, in-house TA plus selective agency overflow becomes rational.
| Hiring volume | Default model | Why |
|---|---|---|
| 1–3 critical seats | Contingency agency | Pay on start, specialist networks |
| Ongoing monthly reqs | In-house TA | Always-on process and brand |
| Spike + baseline | Hybrid | Partner for spikes, TA for baseline |
Hidden costs both ways
Agency: fee percentage and coordination load. In-house: salary, tools, ramp time, and management bandwidth.
Neither fixes a broken interview loop. Fix scorecards and decision speed first.
Related reading
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