No Recruiters, No Growth: The Overlooked Costs of Doing Without

There's no denying that external recruiters help to keep the U.S. job market moving, and without them, businesses would feel the impact.

Businesses might try to adapt by building up their in-house recruiting teams or leaning more on technology, but that only goes so far. External recruiters bring specialized expertise, deep industry connections, and access to top talent—including those who aren’t actively job hunting. Without them, hiring would take longer, great candidates would be harder to find, and companies could struggle to grow as quickly. In the long run, that could slow down innovation and have a real impact on the economy.

What challenges might businesses face without external recruitment partners?

Here are some insights and references:

• Slower Hiring & Talent Shortages: The average time to fill a position is already around 36 business days, and without recruiters, this could increase significantly. Longer hiring times would make it harder for companies to keep up with demand, impacting productivity and growth. (jobtip.com)
• Increased Burden on Internal Teams: HR teams would have to take on full-cycle recruiting, pulling focus from other important responsibilities like employee development, engagement, and compliance. This could lead to burnout and inefficiencies in the hiring process. (flair.hr)
• Reduced Access to Passive Talent: Nearly half of the workforce isn’t actively job hunting but would consider new opportunities if approached by a recruiter. Without external recruiters, companies would lose access to this critical talent pool, making it much harder to find top-tier candidates.
• Economic Growth Could Slow: The staffing and recruiting industry contributed nearly $210 billion to the U.S. economy in 2022. Removing external recruiters would disrupt talent matching, slowing business expansion, innovation, and overall economic momentum. (statista.com)
• Higher Turnover & Mismatches: Hiring the wrong person can be costly, and without expert recruiters to help identify the right fit, companies may see higher turnover rates. This leads to wasted time, increased hiring costs, and operational disruptions.

Even the Best Internal Teams Benefit from External Recruiting

Some may disagree—maybe you’ve had a bad experience with a recruiter or have a strong internal team—but that doesn’t mean external partners aren’t essential.

Even the best internal teams can benefit from external recruiters. While in-house teams know the company inside and out, external recruiters bring fresh connections, industry expertise, and access to top talent—especially the 70% of the workforce who aren’t actively job hunting but would consider the right opportunity (LinkedIn).

They also help lighten the workload, so HR can focus on retention and development, which is critical since 52% of talent acquisition leaders say the hardest part of hiring is identifying the right candidates (Jobvite).

For tough-to-fill roles, external recruiters leverage market insights and networks to speed up hiring—important when the average time to fill a position is 36 business days and even longer for senior roles (SHRM).

When to Bring in an External Recruiting Partner

Internal teams and hiring managers often turn to external recruiters when they need to fill senior, specialized, or hard-to-fill roles quickly. Whether it’s accessing top-tier passive talent, reducing time-to-hire, or gaining market insights, external recruiters provide valuable expertise and connections. They’re especially helpful during periods of rapid growth, confidential searches, or when internal teams are stretched thin. By leveraging their networks and industry knowledge, companies can streamline hiring and secure the best talent more efficiently.

An external partner isn’t always needed, but there are times when they can make a big difference.

Reach out to learn more about when an external partner can add the most value:

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