How to Know If You Need an In-House HR Team or a Recruiting Agency

Advice for Hiring Managers

From startups to established brands, here’s how to decide whether to invest in HR or partner with a recruiting agency like Good People.

Hiring is one of the biggest investments a company makes. But deciding how to hire—whether to build an internal HR team or partner with a recruiting agency like Good People, who can step in with proven expertise, existing networks, and the flexibility to scale with your needs.

The good news? There’s a clear way to figure it out. By looking at your company’s size, stage, and goals, you can decide whether an in-house hire, an external partner, or a mix of both is the best path forward.

When an In-House HR Team Makes Sense

Hiring a full-time HR or People leader is a big commitment. An in-house HR leader can make sense when:

High-volume, ongoing hiring is part of your reality. If you’re opening multiple roles every quarter across departments, you need someone inside to manage it.
You need more than recruiting—things like payroll, compliance, onboarding, benefits, and retention strategy.
You’re ready to invest in a $100K–$150K+ salary (plus benefits) for an experienced HR leader.
Culture-building is a top priority, and you want someone dedicated to shaping it every day.

But even in these cases, many companies still lean on partners like Good People for urgent or specialized searches their internal teams can’t tackle alone.

📌 Scenario: A CPG brand with 150 employees is consistently hiring across sales, operations, and marketing. They also need someone to handle compliance and employee relations. Here, bringing on an HR Director makes sense.

When a Recruiting Agency Like Good People Is the Better Fit

For many companies—whether startup, small business, or mid-sized brand—it’s too early (or unnecessary) to hire HR full-time. That’s where an external partner becomes the smarter, more cost-effective choice.

Choose an agency when:

Your hiring needs come in bursts—a few key roles this quarter, nothing the next.
You need specialized or executive hires that require niche industry networks.
You don’t have the budget for a senior HR leader, but you need results quickly.
You already have HR, but they’re overloaded and need recruiting support.

This is where Good People shines. We’ve helped startups, small businesses, and established brands fill critical roles quickly, without the overhead of building out full HR before it’s truly needed.

📌 Scenario 1: A 25-person wellness startup needs a Director of Operations. They don’t have enough roles to justify full-time HR, but the founder can’t run a months-long search. Good People steps in, manages the process, and delivers top candidates fast.

📌 Scenario 2: A 300-person beauty company already has HR but calls in Good People to handle a confidential search for a Head of Marketing. Internal HR focuses on employees; the agency zeroes in on talent.

The Hybrid Model: Best of Both Worlds

It’s not always either/or. Many companies land here:

They keep HR in-house for day-to-day, culture, and compliance.
They still partner with a recruiting agency like Good People to strengthen their hiring muscle—whether for confidential searches, spikes in demand, or leadership hires that require extra attention.

This hybrid approach gives you consistency and flexibility – without overloading internal teams.

The Checklist: HR vs. Recruiting Agency

Ask yourself:

How many roles do we need to fill in the next 6 months?
Do we need compliance, payroll, and retention strategy (HR)—or mainly help finding talent (Agency)?
Do we have budget for a $150K+ HR leader, or is a per-role investment smarter?
Is our hiring steady or spiky?
Do we already have HR but need more horsepower?

✅ If you said steady, high-volume, and need compliance, HR is probably right.
✅ If you said critical hires, specialized roles, or bursty hiring, an agency like Good People makes more sense.
✅ If you said we have HR but they’re maxed out, hybrid is your sweet spot.

No matter where you land, the safest next step is talking with a partner like Good People who can help you map the right approach—whether that means starting with agency support or building toward HR.

Why Good People

Good People is built for this exact moment of decision-making:

Startups & small businesses lean on us when HR overhead isn’t realistic.
Mid-sized companies count on us to accelerate growth and cover hiring gaps.
Larger brands partner with us for specialized or confidential searches.

At every stage, we flex to fit your needs – so you’re never stuck with the wrong solution or paying for overhead before you’re ready.

Bottom Line

Hiring is too important to get wrong. Don’t rush into building HR before it makes sense. And don’t stall growth because you can’t hire fast enough. For most companies, the best first step is partnering with a recruiting agency – so you get the hires you need today, and the flexibility to decide when (or if) in-house HR is the right move later.

📩 If you’re weighing HR vs. agency support, send us a message. Good People can help you map the smartest path forward in a free consultation and fill the roles you need today.