What’s Best for Your Business? Embedded Talent as a Service (TAaaS) vs. Recruitment Agency vs. In-House Recruitment Teams

When your tech business reaches the stage where you need to grow your team rapidly, the challenge often lies in choosing the right hiring model. With no or limited internal recruitment team and a goal to make multiple hires, the decision is pivotal. Should you bring recruitment in-house, hire a freelancer, engage with a traditional agency, or explore a modern Embedded Talent as a Service (TAaaS) model?

Let’s break down each option, highlighting real-world insights gained from supporting fast-growing tech companies such as Skeepers, Relex Solutions and E2open, while providing actionable advice tailored to your stage and hiring needs.

Exploring Your Recruitment Options

1. Build an In-House Recruitment Team

This traditional approach involves hiring full-time talent acquisition professionals as part of your internal team.

Ideal For: Companies with predictable, high-volume hiring roadmaps.

Costs: The average salary for an in-house recruiter in Berlin or London is €50,000/£42,500 annually. In the US East Coast: In cities like New York, NY, the average annual salary for an in-house recruiter is around $73,000.

West Coast: In San Francisco, CA, the average annual salary is approximately $79,000.

with additional expenses like ATS platforms (£5,000) and LinkedIn Recruiter licenses (£8,000). 

Pros:

• Ownership: You have complete control over your employer brand and candidate experience.
• Cost Efficiency (Over Time): For businesses with over 30 hires annually, this approach can become cost-effective vs external agencies. 
• Process Maturity: Internal recruiters can develop scalable systems and processes tailored to your company’s needs.

Cons:

• Lack of Flexibility: Internal teams struggle to scale up or down quickly to match hiring fluctuations.
• Time to Ramp: From hiring the recruiter to seeing results, you’ll experience a lag of 2–3 months.
• Fixed Costs: Even during slow hiring periods, salaries and tools are ongoing expenses.

2. Recruitment Agencies

This transactional model relies on agencies sourcing candidates, charging fees only when a hire is made.

Ideal For: Businesses needing one-off or niche hires.

Costs: Fees are typically 17–35% of the hired candidate’s annual salary. A £70,000 sales manager, for example, could cost you £17,500 at a 25% fee.

Pros:

• Speed: Agencies have access to large networks, delivering candidates quickly.
• No Upfront Costs: Agencies charge only when a hire is made (unless retained).
• Scalability: Use as needed during hiring peaks.

Cons:

• High Costs: Per-hire fees add up, making this a poor choice for companies scaling rapidly.
• Brand Blindness: Agencies represent your brand, but you have limited control over how it’s perceived.
• Short-Term Solution: Agency candidates often come with a year-long fee clause, restricting your ability to build long-term talent pools.
• Transactional: The commission based incentive model for agencies can result in pushy, transactional relationships. 

3. Embedded Talent as a Service (TAaaS)

Embedded TAaaS combines the best aspects of in-house recruitment and external expertise, offering scalability and full-service hiring solutions. Saiyo.io’s model for example integrates seamlessly into your business, delivering flexible, cost-efficient recruitment for tech companies.

Ideal For: Companies with ongoing hiring needs and limited internal resources.

Costs: Subscription-based pricing starts at £3,999/month, with no hidden fees or placement charges.

Pros:

• Comprehensive Tools: Access to LinkedIn Recruiter licenses, ATS implementation, and talent mapping platforms.
• Speed: Leveraging AI-powered search and expert headhunting, TAaaS reduces time-to-hire significantly.
• Cost Efficiency: Saves over 60% compared to traditional agencies, especially when hiring multiple roles.
• Brand Amplification: TAaaS partners work to enhance your employer brand and EVP (Employee Value Proposition).
• Flexibility: Scale up or down with 30-day notice periods, matching hiring demand seamlessly.
• Risk-Free: Fixed monthly fees and guaranteed outcomes make TAaaS a safer investment.

Cons:

• One-Off Hires: For single roles this model doesn’t work and for this the Saiyo offer a headhunt search service with a predictable fixed fee for each search. 

Case Study: Scaling Faster with Saiyo.io

A Series B SaaS company needed to hire 20 GTM roles across Europe and the U.S. over six months. They initially relied on agencies but found the costs unsustainable. Partnering with Saiyo.io reduced their recruitment spend by 65%, improved their time-to-hire to under 30 days, and left them with a fully operational ATS and a stronger employer brand, when we had finished. 

Conclusion

For high growth tech businesses, Embedded TAaaS offers the best combination of speed, flexibility, and cost savings. While in-house recruitment is ideal for stable, predictable growth, and agencies work for one-off hires, TAaaS shines in supporting dynamic, high-growth hiring needs.

If you’re scaling your team and want a partner who feels like an extension of your business, reach out to Saiyo.io today.