Recruiter (Agency vs. In-House)

The person who sources, screens, and manages candidates through the hiring process — either employed by the company or by an external agency.

Recruiters manage the candidate pipeline: sourcing candidates, screening resumes, conducting initial interviews, coordinating the hiring process, and communicating offers. There are two distinct types: in-house recruiters (also called internal or corporate recruiters) who are employees of the hiring company, and agency recruiters (also called external recruiters, staffing agencies, or headhunters) who work for third-party firms and are paid a fee — typically 15–25% of the hired candidate's first-year salary — when they successfully place a candidate.

The incentive structures are meaningfully different. An in-house recruiter is compensated to find the best long-term fit for the company. An agency recruiter earns their fee only when a placement is made, which can create pressure to close candidates quickly and move them into roles regardless of long-term fit.

Working With Agency Recruiters

  • They work for the employer, not for you — even if it feels collaborative.
  • They're motivated to close placements — ask how they're compensated and what their fee structure is.
  • They can be valuable for accessing roles not publicly posted, especially in executive and specialized searches.
  • Be honest about your requirements — a recruiter who doesn't understand what you actually want will waste your time.
  • Don't let them submit your resume to a company without your explicit permission.
  • Ask which specific companies they're recruiting for — you don't want duplicate applications.

In-House vs. Agency: What Candidates Should Know

In-house recruiters typically have deeper knowledge of the company culture, team dynamics, and growth trajectory. They're better positioned to give you an honest picture of what working there is actually like. Agency recruiters may have broader market knowledge and connections across multiple companies. For a job seeker, the right recruiter to cultivate is one who specializes in your field and has a track record of placing candidates in roles at your target level — regardless of whether they're internal or external.

Example

A startup uses an agency recruiter to fill a VP of Sales role because they don't have an internal recruiting team. The agency sources candidates, manages the process, and receives a fee equal to 20% of the VP's first-year base salary upon a successful hire.