in short
In-house recruiting works if you have the time, the network and someone dedicated to hiring. Outsourcing makes sense for a rare, confidential or urgent role, or if your in-house search has stalled. The two often combine: in-house for volume roles, a provider for strategic ones.
why are more smes outsourcing their executive hiring?
Using a provider to hire an executive has risen sharply among French SMEs: nearly half used one for at least one executive hire in 2023, against four in ten in 2019.
49%
of SMEs (10 to 249 staff) that recruited executives used a provider for at least one hire in 2023, up from 39% in 2019
Apec, Le recours des PME aux cabinets privés de recrutement, 2024 (in French) (opens a new window), 2023 data
79%
of SMEs (10 to 249 staff) that used an agency to hire an executive cite a strategic role, 71% an urgent need or a lack of time
Apec, Le recours des PME aux cabinets privés de recrutement, 2024 (in French) (opens a new window), 2023 data
Apec links this rising use to fiercer competition for skills: against larger companies, SMEs can be at a disadvantage through a weaker employer brand, limited in-house capacity to recruit, or a budget that limits what they can offer.
when does in-house recruiting remain the right call?
In-house hiring works well when someone (an owner or an HR manager) can give it real time, the role resembles ones you have filled before, and your existing network or the applications you already receive are enough to find people.
- A recurring volume of similar hires, which justifies building in-house expertise.
- An employer brand already known in your local labour market.
- Available time from the person doing the hiring, with no tight deadline.
- A common profile, for which candidates apply without active outreach.
We do not cover the full cost modelling here (the cost of a salaried in-house recruiter, agency fees, the cost of a failed hire): our article agency, in-house recruiter or RPO, the real cost of a hire works through it in detail.
when should you outsource all or part of a hire?
SMEs that use a provider mainly do so for roles they see as strategic or for an urgent need. Scarcity of the profile and market tension matter too: a role you have not managed to fill alone for several months is a good candidate for outsourcing.
- A rare or highly sought profile, hard to reach with your own network alone.
- A confidential search (an unannounced replacement, a sensitive role).
- A tight deadline, without the in-house time to run the search.
- An in-house search already under way that has produced nothing after several weeks.
Results stay mixed: only half of SMEs rate the outcome as a good investment, but experience changes that view. SMEs that have already used an agency are far more likely to consider using one again than SMEs as a whole.
47%
of SMEs rate using a recruitment agency as a good investment
Apec, Le recours des PME aux cabinets privés de recrutement, 2024 (in French) (opens a new window), 2023 data
55%
of SMEs that have already used an agency would consider doing so again, against 34% of all SMEs
Apec, Le recours des PME aux cabinets privés de recrutement, 2024 (in French) (opens a new window), 2023 data
how do you combine in-house hiring and outsourcing?
The two are not mutually exclusive. Many companies keep in-house hiring for common roles and volume, and bring in a provider for rare, confidential or urgent ones. A platform of independent headhunters adds a middle option: no contract with a single agency, no subscription, a mission launched when needed.
- Sort your open roles by scarcity, urgency and confidentiality.
- Keep common and recurring-volume profiles in-house.
- Outsource strategic, rare or confidential roles.
- Track the cost per hire over a year to decide whether building an in-house team would pay off.
frequently asked questions
Does an SME need a dedicated in-house recruiter?
No, it is not essential. Many SMEs hire without a dedicated role, combining managers' time with occasional help from a provider for the hardest roles.
Does outsourcing a hire always cost more than hiring in-house?
Not necessarily: it depends on the number of hires per year and the fee model. Our article on the real cost of a hire works through that calculation in detail.
Can you outsource a single hire without a long-term commitment?
Yes. Some models, like Muzzo, let you launch a single assignment with no subscription and no exclusivity, paying only on hire.
Does in-house hiring guarantee a better grasp of company culture?
It helps, but a well-briefed outside specialist, with regular feedback, can pick it up too. The real guarantee lies in a precise brief, not only in who runs the search.