In-house vs Agency recruitment for your Fintech organisation
In-house vs Agency recruitment for your Fintech Lending organisation?
As the Fintech industry continues to show unprecedented growth many of the start-ups who hired initially through their own network or ad-hoc contingency recruitment are now hiring at levels that require more focus on their recruitment strategy.
Essentially, when a business is embarking on a scaled recruitment campaign, cost and success rate are key considerations.
A handful of the current market leaders have opted for an in-house recruitment model whilst others remain faithful to traditional agency hiring. There are pros and cons to both approaches, however there some important factors to bear in mind..
What does good look like with an in-house sourcing model?
If a CEO decides to set up an in-house recruitment division they fundamentally believe this a solution to ‘owning’ the organisations’ recruitment process cradle to grave and reaping significant cost benefits against using an Agency.
It’s important to consider however the level of investment required to equip an internal recruiter with the tools necessary to be successful. Typically most organisations provide limited resource (i.e search platforms, marketing etc) and invariably after a period of going to market directly, the recruiter will have a parachute of preferred agencies they use when required.
So in some cases, unless the organisation invests in more recruiters to manage high volume recruiting, your in-house recruiter essentially becomes a ‘co-ordinator’ for external suppliers. Recruitment agencies have mature databases with excellent candidate reach which are grown over years by numerous consultants. This is not available to in-house resourcing start-ups.
The expectations of how effectively your in-house team can deliver, particularly in the early stages need to be realistic.
So why go to the trouble – stick with Agencies?
Although an in-house model throws up many challenges, there are many established internal functions out there that are effective. In Fintech, it’s still early days, but the larger players who have invested heavily in recruitment ‘teams’ seem to be operating the model successfully to date.
A well-known difficulty with using agencies, particularly in the Fintech industry where supply is short, is finding a trusted partner than can deliver time and time again. Many Fintechs who use agencies often release requirements to a number of suppliers, which creates a messy process of fielding CVs from various avenues.
Also in terms of brand, numerous agencies that a Fintech hasn’t truly engaged with will be sending mixed messages out to the market and potentially damaging their brand.
So what’s right for your Fintech?
It’s important to understand all the options available. In-house recruiters will assure you they can implement processes and ensure delivery, particularly on a day rate. Like agencies, some of them are good and come with referenceable success. You will need to satisfy yourself this individual brings tangible ROI. One challenge will be finding someone who has delivered their model within Fintech, as it’s relatively new..
If you’re considering agencies, a partner approach is unquestionably more effective for your business. However, engaging or getting tied in with a dud will be a huge wasted exercise. Invite a number in to discuss their capability, and again referenceable success is an absolute must.
If you find the right supplier there are various search options available to suit cost, from contingency, retained and if you required more of a presence RPO (recruitment process outsourcing) is also a cost effective option for volume hiring.
Sales Point Recruitment are trusted partners to start-up and established clients in the Fintech sector and provide a number of bespoke recruitment solutions tailored to clients as their business evolves.