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The Hidden Costs of Building an Internal Talent Acquisition Team.

By  Saiyo Consulting  ·  3 minute read

The Hidden Costs of Building an Internal Talent Acquisition Team

As the tech industry continues to grow at a rapid pace, hiring top talent is more important than ever for companies looking to scale their business. Many tech companies wrestle with the decision of whether to build an in-house talent acquisition team or outsource their recruitment efforts. On the surface, building an internal team may seem like a cost-efficient, controllable option. But when you break down the true costs, the reality is often much more expensive than expected.

The Obvious Costs: Salaries and Benefits

Building an internal talent acquisition team involves hiring not just recruiters, but also team leaders and HR specialists who can develop a hiring strategy. The salaries alone can be significant:

  • Talent Acquisition Leader: Hiring a senior professional to lead the team can cost upwards of $150,000 (€130,000) annually, especially in tech hubs in Europe or the USA.
  • Recruiters: Depending on their experience, recruiters' salaries can range from $50,000 to $90,000 per year (€45,000 to €80,000).

In addition to base salaries, you have to factor in employer taxes, benefits, and commissions. A typical benefits package—which includes health insurance, retirement contributions, and paid time off—can add an extra 20-50% to the overall cost of each employee (depending on location). Don’t forget performance-based commissions or bonuses, which are often a significant motivator for recruitment teams.

The Hidden Costs: Software, Tools, and Lost Productivity

Successful talent acquisition teams require more than just good recruiters; they need tools to work efficiently. Costs that are often underestimated or overlooked include:

  • Recruitment Software & Licenses: To manage candidates effectively, your team will need access to Applicant Tracking Systems (ATS), LinkedIn Recruiter licenses, and various sourcing tools. These subscriptions can cost tens of thousands of dollars annually, depending on your company’s size.
  • Job Advertising: To attract high-quality candidates, especially in competitive markets like SaaS, advertising on job boards, LinkedIn, and other platforms is essential. Monthly advertising budgets can range from $5,000 to $20,000, depending on the volume and quality of candidates you're looking for. These costs can quickly add up, especially for niche or senior roles.
  • Training & Development: Your team will require regular training to stay up-to-date with industry trends, software updates, and compliance requirements.
  • Employee Turnover: Recruitment is a high-burnout industry, leading to regular turnover. Replacing a recruiter can cost your company an additional 20-30% of their annual salary, factoring in lost productivity and the time it takes to onboard someone new.

The Risk of Inflexibility

One of the biggest downsides to building an internal team is that it can’t always easily scale up or down depending on your hiring needs. A sudden spike in hiring demands could overwhelm your team, slowing down the process and potentially causing you to miss out on top talent. On the flip side, if hiring needs slow down, you are still locked into paying salaries, benefits, and software costs.

This lack of flexibility can be especially harmful to fast-growing tech companies where hiring needs may change quarter to quarter.

Saiyo's TAaaS: A More Cost-Effective, Scalable Solution

At Saiyo we offer a Talent Acquisition as a Service model that was created to help solve these problems. We can work alongside and as a part of your existing TA team, or we can become your TA team, helping to set the foundations for the future.

Here’s why it may be a better alternative for you:

  • Lower Overall Costs: With our TAaaS solution, you bypass the need for salaries, benefits, taxes, advertising and recruitment software costs. We handle everything for a flat, predictable fee. Our TAaaS customers save over 60% on their annual recruitment costs vs both traditional internal and external models. 
  • On-Demand Scaling: Whether you need to hire one leader or build an entire go-to-market team, Saiyo’s model allows you to scale up or down based on your immediate needs. This ensures that you’re never over- or under-staffed.
  • Specialised Expertise: Our team specialises in building Executives, Leadership, Go-To-Market, and technical teams for tech companies, offering you the expertise of a search firm without the overheads.
  • We Become an Extension of Your Team: At Saiyo, we don’t just find candidates—we become an extension of your team. We take your Employee Value Proposition (EVP) to the market as though we were your internal recruiters. We represent your brand and culture with the same passion and precision you would, ensuring that every candidate experience aligns with your company’s values and long-term goals.
  • Full end to end Talent Acquisition services: Recruitment, Executive Search, Employer Branding, Marketing, Resource Planning, Analytics, Talent Pipelining, Process Optimisation, internal TA team training, software selection, AI consulting and more.
  • No Turnover Risk: We maintain a consistent team of expert recruiters and talent specialists so that you don’t have to worry about turnover, training, or development.

Conclusion: Cut Recruitment Costs, Boost Hiring Efficiency

We aim to be a partner to and a weapon in the arsenal of talent and business leaders in tech. With Saiyo's AI powered Talent Acquisition as a Service (TAaaS), you can enjoy the power and expertise of a search firm at scale, without the costs and risks associated with both traditional internal and external recruitment models. Ultimately saving you time and money while helping you scale at pace.

Interested in learning more about how Saiyo’s TAaaS solution can streamline your hiring process and cut costs? Contact us today! Email. Schedule a Call.