According to , the median number of open positions per recruiter at any given time is between 30 and 40. If your hiring needs are below that number, it may make more sense to outsource to a direct hire agency or a freelance IT recruiter.
Urgency of hiring: Recent research 3 to 4 times the salary of a position to hire a new employee, 60% of which are indirect, including time spent. The more people involved in the recruiting process, the higher the expenses. The investment in onboarding, training, and benefits for new hires can add up quickly. Outsourced HR services such as a remote hiring agency can minimize upfront costs or avoid long-term employment liabilities.
Expected level of control: Direct hire gives you full control over every stage of the recruitment process, but it also increases your time commitment and legal liability. However, administrative tasks such as payroll and compliance can be outsourced while you retain control over day-to-day management.
Most common hiring models: Comparison & overview
How do these factors affect hiring in the real world? Let's start with a high-level comparison of each common model.
Best For: Organizations with fewer than 10 open positions at any given time, facing sudden hiring needs without the commitment of a full-time HR team. This model fits companies with budget constraints and an urgency to hire where project-based support is sufficient.
Hiring agencies
When companies use a direct hire employment agency, or a freelance recruitment agency, they benefit from a structured approach and established processes that help them source and screen candidates efficiently. These organizations have access to a wider network, which speeds up the hiring process and helps them meet higher demand for new staff.
However, this model comes at a higher cost. While a direct employment agency can provide more comprehensive services than freelancers or even some internal HR teams, the cost can prove prohibitive during rapid growth or expansion. In addition, they are still not fully under your control, and their responsibility ends once a candidate accepts a job offer, creating the risk of subsequent mismatches, even when working with the best hiring agencies.
Best For: Companies managing temporary projects requiring 5–20 specialists during peak seasons. This option is perfect for those with a limited budget who want to avoid long-term commitments but still need skilled talent.
Professional Employment Organizations (PEO)
This model has become especially popular in recent years. , for example, we have a network of more than 40,000 candidates ready to step in. And even in the event of a later mismatch, we offer the ability to replace a candidate during the 10–20 day probationary period.
There is also a lower risk of non-compliance, as these organizations take care of local legal requirements themselves.
Finally, the overall cost is significantly less than maintaining an internal HR team or hiring outsourced recruiters or direct hiring company. Why? We
**Best For: **Small and mid-sized businesses, and start-ups with fewer than 20 positions that need to hire across multiple jurisdictions. This model is ideal for those seeking a quick time to market with less administrative burden, combined with robust compliance support and cost-effective solutions.
How to choose a hiring strategy that works for you
Bookmark this article, share it with colleagues, and return to the checklist above each time you face a new hiring challenge.
Each case should be considered on its own merits, even within the same organization. Depending on what you need to do in a given timeframe, the approach would and should be different.
Factors such as the number of open positions, urgency, financial constraints, and more will help determine the right approach here and now. Whether you develop the team from within or hire consultants, a clear understanding of your organizational context will enable you to effectively assemble a responsive and resilient team capable of dealing with the current realities of the job market.
*Want to learn more about PEO services? * We’ve prepared a comprehensive overview here, and we’re ready to answer any questions you may have in person. To get a free preliminary consultation, please contact us at [email protected].
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