EngineeringHiringCostRun TCO

Agency vs In-House

Agency vs In-House Engineering Recruiting: 2026 Cost Comparison

At what hire volume does in-house win? Total-cost comparison at 5, 10, 20, and 50 engineering hires per year, including loaded recruiter cost, sourcing-tool seats, and ATS spend.

Annual hiresAgency totalIn-house totalIn-house per-hireDeltaWinner
5 engineers / year$130,000$175,000$35,000+$45,000Agency
10 engineers / year$260,000$200,000$20,000-$60,000In-house
20 engineers / year$500,000$320,000$16,000-$180,000In-house
50 engineers / year$1,150,000$705,000$14,100-$445,000In-house

Agency assumed at 18-20% contingency on $130k average base. In-house fixed includes recruiter loaded cost ($120-180k at scale) plus sourcing-tool seats and ATS.

Inside the numbers

What sits in each model

Agency model

  • 15-25% of base success fee per placement (contingency).
  • $300-800/month ATS seat shared across hiring managers.
  • $0 sourcing-tool fixed cost; agency carries that.
  • Variable cash flow; you only pay on placement.
  • Replacement guarantee typically 90 days, sometimes 180.

In-house model

  • Loaded recruiter cost $120-180k all-in per technical recruiter.
  • Sourcing-tool seats: LinkedIn Recruiter ($170-1,000+/mo), SeekOut, Gem categories.
  • ATS $300-2,500/month depending on platform tier.
  • Ramp time 60-90 days to first hire from a new recruiter.
  • Hidden cost: recruiter bandwidth caps; over-cap roles often spill back to agency anyway.

Hybrid (most common at scale)

70% in-house / 30% agency

Most engineering orgs at 15+ hires per year run hybrid: in-house team owns junior, mid, and high-volume roles; contingency or retained agencies handle senior, staff, principal, and rare-skill searches. Typical blended cost: $8-15k per hire.

See your specific break-even

The calculator lets you swap channels and salary to see where your team's break-even falls.