How Startups Can Transition from Agency Recruiters to an In-House Hiring Process
Dover
June 13, 2025
•
3 min
Bringing hiring in-house treats recruitment as a core workflow for your startup. It's an investment, but the benefits are substantial:
Save money by eliminating agency fees
Find better candidates who stay longer
Create your own talent database for future needs
Get data to make smarter hiring decisions
Quickly adjust recruiting as your startup grows
With an internal recruiting engine, you're building a strategic capability that compounds over time, not just paying per transaction. This approach sets you up to scale your team efficiently as you grow.
Switching from agencies requires careful planning to avoid disrupting candidate pipelines and searches. Here are key preparation steps:
Audit current recruiting pipeline: Make a list of all open roles, active candidates, their current statuses, and any notes.
Communicate internally: Align your team on the new in-house process.
Coordinate knowledge transfer: Meet with current agencies to gather candidate info, resumes, notes, and insights.
Time the transition: Briefly overlap old and new processes to prevent cold starts on roles.
Document everything: Write out the detailed transition plan, timelines, and any agency insights to inform your strategy.
Check contracts: Review notice periods, fees, terms around candidate ownership and submissions.
Identify recruiting owner(s): Decide who will own and drive the new in-house process (founder, new hire, etc.).
Thorough preparation prevents candidates from slipping through the cracks during the handover from agencies.
To bring recruiting in-house, you need the right infrastructure and tech stack, starting with an Applicant Tracking System (ATS). This software centralizes all hiring activities in one place.
Implementing an ATS: For startups, consider user-friendly, affordable options like our free ATS. You can set it up in minutes to post jobs, track candidates, and create a careers site.
Organizing your pipeline: Input all existing candidates from the agency knowledge transfer into the new ATS. Going forward, log every new candidate interaction in the system.
Scheduling and coordination: Use calendar integrations to automate interview scheduling, reminders, and team coordination. Tools like Dover integrate with Slack for easy communication.
Using AI and smart tools: Modern ATS offer AI resume scoring to automatically surface top candidates.
Multi-channel approach: Collect candidates across job boards, referrals, LinkedIn, and other sources, tracking their origin in the ATS.
Employee referral programs: Implement a simple way for your team to submit referrals, which feed directly into your ATS pipeline.
Process and training: Define clear hiring workflows and train your team on using the new tools and providing feedback.
With smart recruiting software, teams can process high hiring volumes even with limited bandwidth and resources.
Bridging the Gap with Fractional Recruiters
Fractional recruiters provide professional hiring help on a flexible, hourly basis, bridging the gap between agencies and full-time hires.
What is a fractional recruiter? An experienced recruitment pro you hire for set hours/projects, not a salaried employee. Think of them as an on-demand, part-time internal recruiter.
Benefits of fractional recruiting:
Expertise without the overhead of a full time hire
Cost transparency via hourly rates (often ~$150/hr)
Simple team integration using your tools like an ATS
On-demand flexibility to scale their hours
High touch, quality focus (not just volume)
Dedicated attention on your specific roles and needs
Finding fractional recruiters: Use a service like Dover's expert recruiter marketplace. Or find someone via your network with relevant experience.
When to use fractional: During transition periods to prevent hiring lulls, for short-term hiring sprints, executive searches, or whenever hiring needs fluctuate.
Fractional recruiters provide speed, flexibility, and expertise which is exactly what startups need for efficient hiring without breaking the bank.
90-Day Roadmap: Migrating from Agency to In-House Recruiting
Here's a sample 90-day plan to transition from agency-driven to full in-house recruiting:
Month 1: Planning & Setup | Month 2: Transition Execution | Month 3: Fully In-House |
|---|---|---|
Announce transition and gather agency knowledge | Internal sourcing and recruiting begins | Cut over to 100% internal process |
Set up ATS (e.g. Dover's free option) and import candidates | Gradually phase out agencies | Review results and refine approach |
Train team on new process | Coordinate all interviews in-house via ATS | Make hires through new process |
Bring on fractional recruiter (optional) | Monitor metrics | Remove any remaining agencies |
Plan next steps to keep scaling |
Conclusion: Empower Your Startup's Recruiting Future
Making the switch gives you full control over a hiring process you can easily repeat and grow. You'll save money, build a stronger brand as an employer, and create the exact team you want. Try our free applicant tracking system with smart resume scoring and simple job posting tools to make it happen. Their network of part-time recruiters can help guide you through the change.
Be patient and persistent in refining your process. Excellence in hiring builds a stellar reputation. If you're looking to get started with fractional recruiters to help you bridge the gap, you can check out our startup recruiter marketplace.
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