Should You Use a Recruiting Agency? When It Makes Sense for Manufacturing Companies

The question of whether to use a recruiting agency is one that manufacturing companies grapple with regularly. On one hand, you have internal HR teams and job boards. On the other, specialized recruitment firms promise faster results and better candidates. So when does it make sense to partner with a recruiting agency?

"We tried doing everything in-house for years," explains a DFW manufacturing executive. "But we were spending so much time on recruitment that we weren't focusing on our core business. Working with a specialized agency changed everything—we get better candidates faster, and our team can focus on operations."

The Case for Using a Recruiting Agency

1. You're Struggling to Fill Positions

If you're experiencing extended vacancies, a recruiting agency can help. Specialized agencies have:

• Deeper candidate networks: Relationships with passive candidates who aren't actively job searching
• Industry expertise: Understanding of manufacturing roles, requirements, and market conditions
• Faster processes: Streamlined screening and vetting that reduces time-to-fill

"We had a maintenance technician position open for four months," shares a Houston plant manager. "Our HR team posted it everywhere, but we got maybe two qualified applicants. A recruiting agency found us three strong candidates in two weeks. The difference was their network and industry knowledge."

2. You Need Specialized Skills

For roles requiring specific certifications, industry experience, or technical skills, agencies often have better access to qualified candidates. They maintain relationships with skilled professionals who might not be actively looking but would consider the right opportunity.

Specialized roles that benefit from agency support:

• Certified welders (AWS, specific processes)
• CNC machinists with specific software experience
• Quality engineers with industry-specific knowledge (aerospace, medical devices)
• Maintenance technicians with PLC/automation experience
• Plant managers with specific industry backgrounds

3. You're Growing Rapidly

Rapid growth creates hiring challenges. When you need to fill multiple positions quickly, agencies can scale with you. They have the resources and networks to handle volume hiring while maintaining quality.

"We opened a new facility and needed to hire 50 people in three months," recalls a San Antonio manufacturer. "There's no way our small HR team could have handled that while also managing our existing operations. The agency became an extension of our team."

4. You Want to Reduce Time-to-Fill

Every day a position is vacant costs money. Agencies can significantly reduce time-to-fill by:

• Pre-screening candidates
• Maintaining talent pipelines
• Having established processes
• Leveraging technology and networks

5. You Need Market Intelligence

Good agencies provide valuable market insights:

• Current salary ranges
• Candidate availability
• Competitive landscape
• Industry trends

This intelligence helps you make better hiring decisions and set realistic expectations.

When to Handle Recruitment In-House

1. High-Volume, Low-Complexity Roles

For entry-level production roles with high turnover, in-house recruitment might make sense if you have:

• Established processes
• Strong employer brand
• Consistent applicant flow
• Internal resources to handle volume

2. Very Specific Company Culture Requirements

If your company culture is extremely unique and requires deep understanding, internal recruiters who live your culture daily might be better positioned to assess fit.

3. Budget Constraints

Agencies charge fees (typically 15-25% of first-year salary). If budget is extremely tight and you have internal capacity, in-house might be necessary.

4. You Have Strong Internal Processes

If your internal team is:

• Filling positions quickly
• Attracting quality candidates
• Maintaining low time-to-fill
• Satisfied with results

You might not need an agency.

Types of Recruiting Agency Relationships

Contingency Recruiting

How it works: You pay only if the agency successfully places a candidate.

Best for:

• One-off positions
• Testing an agency relationship
• Roles where multiple agencies can compete

Pros: Low risk, pay for results Cons: Agencies may prioritize easier-to-fill roles, less exclusivity

Retained Search

How it works: You pay a retainer upfront, with the balance due upon successful placement.

Best for:

• Executive and senior leadership roles
• Critical positions
• When you want exclusive focus

Pros: Dedicated attention, higher commitment Cons: Higher upfront cost, less flexibility

Recruitment Process Outsourcing (RPO)

How it works: The agency manages all or part of your recruitment process, acting as an extension of your team.

Best for:

• High-volume hiring
• Ongoing recruitment needs
• Companies wanting to outsource recruitment operations

Pros: Scalable, comprehensive support, often more cost-effective for volume Cons: Longer-term commitment, requires integration

Our RPO services are designed for manufacturing companies with ongoing recruitment needs, providing comprehensive support that scales with your business.

How to Choose the Right Agency

1. Industry Specialization

Look for agencies that specialize in manufacturing. They understand:

• Technical requirements
• Industry terminology
• Market conditions
• Candidate expectations

"We tried a generalist agency once," says an Austin manufacturer. "They sent us candidates who had never worked in manufacturing. A specialized agency understands what we actually need."

2. Track Record

Ask for:

• Success stories in your industry
• Time-to-fill averages
• Candidate quality metrics
• Client references

3. Process and Approach

Understand their process:

• How do they source candidates?
• What's their screening process?
• How do they assess technical skills?
• What's their communication style?

4. Cultural Fit

The agency becomes an extension of your team. Ensure their values and approach align with yours.

5. Technology and Resources

Modern agencies use technology to:

• Source candidates efficiently
• Screen and assess effectively
• Track and report on metrics
• Communicate seamlessly

The Cost-Benefit Analysis

Costs of Using an Agency

• Placement fees: Typically 15-25% of first-year salary
• Time investment: Working with recruiters, interviewing candidates
• Potential for mismatches: If the agency doesn't understand your needs

Benefits of Using an Agency

• Reduced time-to-fill: Often 30-50% faster
• Better candidate quality: Access to passive candidates and pre-screening
• Market intelligence: Salary data, competitive insights
• Focus on core business: Your team can focus on operations
• Reduced recruitment costs: When you factor in time, advertising, and internal resources

"We calculated that our internal recruitment costs—including HR time, job board fees, and lost productivity from vacancies—were actually higher than agency fees," explains a Dallas manufacturer. "Plus, we were filling positions faster and getting better candidates."

Making the Decision

Consider using an agency if:

• ✅ You're struggling to fill positions
• ✅ You need specialized skills
• ✅ You're growing rapidly
• ✅ Time-to-fill is a concern
• ✅ You want market intelligence
• ✅ Your internal team is overwhelmed

Consider staying in-house if:

• ✅ You're filling positions quickly
• ✅ You have strong internal processes
• ✅ Budget is extremely constrained
• ✅ You have high-volume, low-complexity needs
• ✅ Your internal team has capacity

Hybrid Approach

Many companies use a hybrid approach:

• In-house for entry-level, high-volume roles
• Agency for specialized, hard-to-fill positions
• Agency for leadership and executive roles

This balances cost and effectiveness.

Conclusion

Using a recruiting agency isn't right for every situation, but for many manufacturing companies, it's a smart investment. The key is choosing the right partner—one that understands manufacturing, has proven processes, and aligns with your values.

If you're considering working with an agency, start with a single position to test the relationship. A good agency will demonstrate value quickly, and you can expand the relationship from there.

For manufacturing companies in Texas, working with a specialized agency like The Hammitt Group can dramatically improve your recruitment outcomes. We understand Texas manufacturing, have deep networks across DFW, Austin, Houston, and San Antonio, and specialize in the roles that are hardest to fill.

To learn more about when agency support makes sense, explore our resources on manufacturing recruitment strategies and choosing the right recruitment partner. We're here to help you make the best decision for your business.