ROI Analysis of In-House and Staffing Agency Hiring

This guide presents an ROI analysis comparing in-house hiring versus staffing agency partnerships for federal contractors. It outlines the critical decision-making factors faced by federal prime and subcontractors when determining whether to build an internal recruiting team or engage a specialized staffing agency. The analysis highlights the significant costs associated with in-house hiring, including recruiter salaries, job advertising, background checks, and the hidden costs that can inflate total expenses by 40-60%. It also details the benefits of staffing agency partnerships, such as reduced time-to-fill, access to pre-screened candidates, and lower administrative burdens. The document provides real cost examples and scenarios to illustrate the financial implications of both approaches, emphasizing the importance of considering speed, quality, and risk management in hiring decisions. Additionally, it includes worksheets for calculating specific hiring costs and factors to consider when choosing the best hiring strategy.