Recruiting agencies as well as an RPO (recruitment process outsourcing) firms both provide a way for tech companies to significantly expand their candidate sourcing reach through outsourced recruiters. However, each approach comes with its own list of pros and cons, and deciding which works best for your org will require weighing the options carefully. Here are the key differences between recruiting agencies and RPO Firms, and which is better suited for the needs of the technology startup sector:
The Changing Face of Tech Recruiting
Tech recruiting models have changed almost dramatically in only a few years, spurred on by new economic realities and market changes in a post-pandemic world. Where once many SaaS companies were hiring for many go-to-market (GTM) jobs in short periods, now most are seeking a smaller number of more experienced sales and marketing candidates. This is reflected in increasing searches for each organization’s unicorn seller: a unique candidate that aligns closely with a firm’s current sales motion and will be able to help scale it faster, without needing anything extensive onboarding and training.
Obviously, a new industry focus means that the role of tech recruiters has changed, which adds another layer of complexity when choosing between recruiting agencies or RPO firms. The biggest reason for choosing to outsource your recruiting should be to make your candidate sourcing more scalable, but that depends significantly on how effective the method is for your needs as well as for your budget.
Recruiting Agencies vs RPO Outsourcing
If you are a technology startup looking to build up your GTM team quickly, or just searching for your next unicorn seller, then you are most likely going to be relying on a mix of different methods to source the right candidates for the right time. As illustrated in our Scale Series and especially in our Cost-Per-Hire Guide, you will need to be mindful of where your hiring budget is going and compare this against the ROI of each role you hire for.
Recruiting agencies and RPO firms each bring their own advantages and disadvantages that must be weighed carefully against your goals and needs. One of the key differences between them is what you get for what you pay, with one model focusing more on providing full-service resources while the other relies more on internal alignment and scaling services with pricing levels.
Recruiting Agencies: Pros & Cons
A recruitment agency is a professional services firm at its core, not only delivering candidate sourcing capabilities but also related support and facilitation services on your company’s behalf.
Pros:
- Industry-Specific Knowledge: Top recruiting agencies often specialize in specific industry markets, giving them deeper insight into the skills and experience needed for particular roles
- Full-service Agencies: A recruiting agency is usually a full-service firm, meaning that your account will include the whole range of support available
- Extended Network: Established agencies have vast networks of passive and active candidates that they can tap into
- Expertise: Agencies excel at filling executive and highly specialized positions that require in-depth market knowledge and expertise
- Dedicated Resources: Agencies provide dedicated recruiters for your account and may bring in additional resources as needed to secure your candidate in time
Cons:
- Cost: Agency fees are usually higher, especially for executive or hard-to-fill positions
- Less Integration: Agencies typically work externally, which can sometimes lead to a disconnect with internal company culture and processes
RPO Firms: Pros & Cons
An RPO firm embeds into your hiring team, similar in function to how a fractional executive will integrate with your company for a given project on a temporary basis.
Pros:
- Scalable Services: You can choose different types and levels of service, often with a lower price tag than for a full-range contract
- Embedded Team: RPO firms often work as an extension of your internal HR department, aligning closely with your company culture and processes
- Cost-Effectiveness: For high-volume hiring, RPOs can often provide more competitive pricing structures
- Process Improvement: RPO recruiters just directly into your existing hiring process and team, and can advise on best practice implementation and improvements
- Maintain Branding: RPOs ultimately let you run the show and will work with candidates on behalf of your team, meaning that it will be your brand they operate under
Cons:
- Less Specialization: Some RPOs may lack the deep industry-specific expertise that specialized recruiting agencies offer
- Longer Ramp-Up Time: Implementing an RPO solution can take time, as the team needs to fully understand your company’s needs and culture
- Get What You Pay For: Cost is both a pro and a con of RPOs, since you only get access to services and solutions you pay for and will need to spend to get more
Other Recruiting Methods for Tech Startups
Chances are you have already looked into or are using other recruitment methods if you are seeking outsourced recruiters. Whether you are hiring a whole go-to-market team or just a unicorn seller, finding the right candidates faster most often requires a mix of different sources to scale your coverage in the short-term. Here are a few of the most typical methods we see in conjunction with agencies or RPOs:
- Internal Recruiters: Hiring internal recruiters gives you direct control over the recruitment process, with a team that is fully integrated into the company culture and understands the nuances of what makes a candidate a good fit. However, internal recruiting teams can become costly as the company scales, requiring significant investment in salaries, tools, and resources, as well as lacking access to the same broad networks and industry-specific expertise that specialized agencies offer.
- Job Boards: Platforms like Indeed and LinkedIn offer an open marketplace for job postings, with automated features that help streamline the process. Job boards can be effective for reaching a large audience and are often used by companies looking to fill multiple roles quickly. They bring a lot of drawbacks, however, from fluctuating candidate quality to the sheer number of (often not fully qualified) applicants each job posting brings, and often they will be regulated to use by your RPO or agency recruiters to augment their search.
- Referral Programs: Employee referral programs leverage your existing network by incentivizing current employees to recommend qualified candidates. Referrals can often lead to high-quality hires who fit well within the company culture. While referrals can be more cost-effective than other methods, they are nowhere near scalable. Referral programs are best used as part of a broader talent acquisition strategy, complementing other methods like agency recruiting or RPO.
The Betts Approach: Best of Recruiting Agencies & RPO Recruiting
Betts Recruiting stands out as an agency that leverages the approach, scalability and alignment benefits of an RPO firm while still providing you with the level of support and additional resources you need to find your right-fit candidate at the right time. With a history of helping over 10,000 tech startups scale their GTM teams to hit new rounds of funding, Betts stays with you every step of the way through your journey from Seed stage through IPO.
Specialization in Tech and SaaS
Betts Recruiting focuses exclusively on the tech industry, with unmatched insight into the market that allows us to quickly and accurately match you with candidates who have the right skills, experience, and sales motion fit you are looking for.
Why Specialization Matters:
- Market Knowledge: A focused specialization in SaaS allows Betts to stay ahead of trends and shifts in the industry, ensuring we bring you the best talent for your company’s specific needs
- Targeted Recruitment: By understanding the intricacies of GTM teams in the technology space, Betts ensures that we connect you with candidates who not only have the right qualifications but also align with your company’s unique vision and objectives
Betts Connect: A Game-Changing Hiring Platform
Betts Connect is our proprietary hiring platform that sets us apart from traditional agencies and RPOs, combining a pre-vetted pool of candidates with AI-powered matching and real-time data insights.
- Largest Tech GTM Network: Access tens of thousands of pre-vetted sales, marketing, and customer success candidates with tech backgrounds, frequently updated
- Key Performance Metric Tracking: Filter candidate profiles by KPIs like average deal size, industry experience, and other relevant metrics
- Pre-vetted Candidates: Every candidate is rigorously vetted, ensuring you have access to highly qualified talent ready to match your hiring needs
- Automated Sourcing: AI-driven algorithms match candidates to your specific criteria
- 3rd-Party App Integration: Betts Connect integrates with ATS platforms like Greenhouse and Lever, plus Zoom for easy video interviews
Comp Engine by Betts
Our Comp Engine is a powerful tool that provides real-time compensation data to help you stay competitive without overspending.
- Real-Time Salary Data: Access up-to-date salary insights from recent placements, ensuring your compensation offers are competitive in the tech market
- Shorten Time-to-Hire: View target compensation rates and their impact on Time-to-Hire (TTH)
- Candidate Pool Metrics: Analyze the size and availability of the candidate pool at different compensation levels, optimizing your offers to reach the largest talent segment
- Multiple Filters: Use filters to search compensation data by title, experience, industry, or location
- Seamless Betts Connect Integration: Direct integration with Betts Connect allows you to access compensation data and candidate sourcing in a single platform
Recruitment as a Service (RaaS)
Recruitment as a Service (RaaS) is our innovative model that combines technology, service and human expertise into one package. Through RaaS,you can access the full range of our solutions and services, including Betts Connect, Comp Engine, and dedicated recruiters, all under a predictable subscription model.
- Dedicated Recruiting Support: Gain a dedicated Betts recruiter for comprehensive hiring support, ensuring your recruitment needs are met from start to finish.
- Unlimited Hiring: With RaaS, you can fill an unlimited number of roles as your company scales, offering flexibility and efficiency without compromising on quality.
- Always-on Candidate Pipeline: Access a continuous pipeline of top-tier candidates, ready to fill roles as they open, so you never miss a beat when it comes to staffing.
- Value-effective: RaaS provides exceptional ROI, with the annual subscription costing the same as one hire through a traditional agency model
- Integrated Betts Connect Access: Enjoy full access to Betts Connect, the largest tech GTM talent pool in the U.S., powered by AI for faster and more efficient candidate sourcing.
Recruiting Agency vs. RPO:Making the Right Choice
When deciding between a recruiting agency or RPO firm, consider the following factors:
- Hiring Volume: How many positions do you need to fill, and how quickly?
- Specialization: Do you need industry-specific expertise?
- Budget: What’s your total cost of hiring, including internal resources?
- Integration Needs: How closely do you want your recruiting partner to work with your internal team?
- Long-Term Strategy: Are you looking for a short-term solution or a long-term partnership?
- Technology Needs: Do you require advanced tools like AI matching or compensation analysis?
Finding Your Perfect Recruiting Partner
At Betts Recruiting, we combine industry expertise, cutting-edge technology, and a flexible, scalable approach to deliver the best possible hiring outcomes for our clients. Get in touch with our team today to learn more about how we can tailor our solutions to meet your unique needs and help you build a world-class go-to-market team aligned with your sales motion.
Contact Betts here to get started on your recruiting search, refined to get the best of both worlds of recruitment agencies and RPO firms.