Think Recruiting Internally Is “Free”?
It Might Be Costing You More Than You Think
I often hear this from business leaders and hiring managers:
“We don’t use recruiters; we do it all internally.”
On the surface, it sounds sensible. Why pay external fees when you have capable people in-house?
But here’s the reality: every single hire has a cost, whether you run it internally or externally.
And when you take a closer look, the “cheaper” option can often end up being the most expensive.
The Hidden Costs of Internal Hiring
If a hiring manager takes the lead on recruitment themselves, the obvious spend might look minimal, mainly the cost of advertising.
But there’s a lot more beneath the surface.
Example calculation:
- Job advert: ~€400 per month (LinkedIn, Indeed, Jobly averages)
- Hiring manager time: ~20% of their time each month
- On a salary of €8,000/month (after employer costs), that’s ~€1,600/month
- Average time to fill: 3 months
That’s €5,600+ already — and that’s before you factor in:
- Lost productivity from an empty seat
- Opportunity cost of the hiring manager’s diverted focus
- HR’s involvement, admin, and interview scheduling
Internal recruitment can look low-cost, but it quietly drains time, resources, and momentum.
Internal TA Teams Are Not “Free” Either
Having an in-house Talent Acquisition function can be a fantastic investment, especially for organisations doing volume hiring.
But it’s still a fixed ongoing cost, whether they are actively hiring or not.
Let’s do the maths again:
- TA salary: ~€5,000–€6,000/month
- 3 months to fill a role: €15,000–€18,000
If the hire isn’t made, that’s €15–18k sunk cost — and you will likely still need to procure external support to get the role filled.
Worse, if time-to-hire stretches to 6 months, you could be looking at €30k+ for just one hire, with no guarantee of success.
The Reality
There is no one-size-fits-all approach. But there is a smarter way to balance cost, risk and speed.
- Hiring Manager + advert → Great if the perfect candidate applies quickly.
- Internal TA → Great for volume hiring, but a fixed cost on your P&L.
- External partner → Great for specialist, hard-to-fill roles, and a one-off cost.
The key is to align your approach with the role you’re hiring for.
Sometimes, the “Expensive” Option Saves You the Most
External recruitment partners are often seen purely as a cost line, but the value is in the time they save, the risk they remove, and the quality they bring.
They:
- Target the right profiles fast
- Prequalify for skills, cultural fit and motivation
- Free up your internal resources to focus on driving the business forward
And crucially, you only pay for the service when you need it.
Time to Rethink Your Hiring Mix?
Every hire will cost you something, in money, time or opportunity.
The question is: are you spending those resources in the smartest way?
Balancing internal and external recruitment isn’t about choosing one over the other.
It’s about knowing when each option delivers the best ROI.
Ready to hire smarter?
Let’s talk about how Intelligent Employment can help you reduce time-to-hire and secure the right talent. Contact us today.