Eagle AI Agency

Notes

Should a staffing firm hire a recruiter or rent a desk?

By Matthew Eagle

Founder, Eagle AI Agency. Eight years as a staffing account executive.

Published . Updated .

Most small staffing firms are not short of a recruiter. They are short of a recruiter they can afford to carry while one ramps.

A small staffing firm that has more open roles than the owner can work, and cannot carry a recruiter through months of ramp, is usually better served renting a full desk than hiring. A firm that only hires a few times a year may find a monthly model is the wrong shape. The deciding question is not whether you need recruiting capacity, it is whether you can afford the months before a new recruiter earns their keep.

Why do so many small staffing firms keep failing to hire a recruiter?

Many small staffing firms fail to hire a recruiter because the owner is not a recruiter and cannot carry the cost and ramp of one. Matthew Eagle, founder of Eagle AI Agency, spent eight years on a staffing desk as an account executive, breaking open territory from cold and recruiting into engineering, finance, IT and healthcare. The pattern he keeps seeing in his conversations with small staffing-firm owners keeps showing up.

They came from sales or from operations. They are good at winning the client, running the business and keeping the lights on. The recruiting half of the desk is the part they never did for a living, so the usual plan is to hire a full-desk recruiter and let them carry it.

Then the plan runs into the cost of carrying that person before they produce anything. The owner either stretches to make the hire and watches the cash go out while the recruiter ramps, or never quite makes the hire and keeps working roles at night. Both end in the same place: more job orders than the firm can fill, and a desk that depends on the owner doing a job they were never trained for.

What does an in-house recruiter actually cost before the first placement?

Before a first placement, an in-house recruiter already costs the firm a salary, benefits, an applicant tracking system, a paid recruiter seat on the main professional network, and months of ramp. In full:

  • The salary, from the first day, whether roles are filling or not
  • Benefits, on top of the salary
  • An applicant tracking system, because a recruiter without one is working out of a spreadsheet
  • A paid recruiter seat on the main professional network
  • The ramp, which is the part owners underestimate. Months of a new recruiter learning your clients, your roles and your standards before placements come in at the pace you hired them for

None of that rules out a hire, but the firm has to carry it. A recruiter who leaves at the end of their ramp takes the whole investment with them, and the firm starts again from zero.

What is a full desk, and how is it different?

A full desk is one team handling both halves of a recruiting desk, business development and recruiting, for one flat monthly fee instead of a salary. Business development means finding the companies that are hiring, reaching them, and bringing in the job orders. Recruiting means intake, sourcing, screening, candidate calls and shortlists through to offer.

At Eagle AI Agency, we run the business development side. Our recruiting partner, a former director at a larger recruiting firm, runs the recruiting side. Between us that is over 20 years of highly technical recruiting, with no fee per hire. The people and the tools are already in place, so there is no hire to make and no seat to buy. The detail is on the full desk recruiting page.

How does an in-house recruiter compare with a full desk?

An in-house recruiter carries salary, benefits, tools and ramp before producing anything, while a full desk arrives with the tools and experienced people already in place.

How an in-house recruiter compares with a full desk

In-house recruiterFull desk
Upfront costSalary and benefits from the first dayOne flat monthly fee
ToolsThe firm buys the tracking system and the sourcing seatAlready in place
RampMonths before placements arrive at full paceExperienced people from the start
CoverageUsually recruiting only, business development stays with the ownerBusiness development and recruiting
Technical rolesDepends on who you manage to hireCore focus of the team

When is a full desk the wrong answer?

A full desk is the wrong answer for a firm that only hires a few times a year, because a monthly model may be the wrong shape for that volume. You would be paying every month for capacity that sits idle between searches, and we will tell you that on the call.

A firm that already has a producing recruiter but is short on job orders has a business development problem, not a full desk problem. For that firm, the recruiting engine on its own may be all you need.

What should an owner from sales or operations do first?

An owner from sales or operations should first work out which half of the desk they can run themselves, then whether their open roles are steady or occasional. If you came from sales, you can probably win the business, and the gap is the recruiting. If you came from operations, the gap may be both halves. Then count the roles you expect to work. Steady and more than you can handle points to a desk. Steady and within reach of one good recruiter you can afford to carry points to a hire. Occasional means a monthly model may be the wrong shape, and the call is the place to talk that through.

Questions people ask

Is a full desk a placement fee model?

No. It is one flat monthly fee. There is no percentage of salary and no fee per hire.

Who talks to the candidates?

A recruiter from our recruiting partner. AI helps with sourcing and screening, and the candidate conversations are run by a person.

Can a staffing firm use a full desk as its own recruiting capacity?

Yes. Staffing firms can run full desk as their own recruiting capacity while they focus on clients.

If you are weighing a recruiter hire against a full desk, book a 20 minute call. We will ask how many roles you work and how often, and tell you straight which one fits.

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