Fractional recruiter vs recruitment agency: what is the difference?
A fractional recruiter usually works inside the company’s hiring process for a period of time, while a recruitment agency normally works externally and is often paid a percentage fee when a candidate is hired.
The simplest distinction is alignment. A fractional recruiter is usually hired as temporary internal capacity. An agency is usually hired to deliver candidates from the outside.
How a fractional recruiter works
A fractional recruiter is normally closer to an embedded operator. They help shape the brief, run sourcing and outreach, screen candidates, manage shortlists, advise hiring managers and keep the process moving. The commercial model is usually hourly, daily, monthly or project-based.
How an agency works
A traditional recruitment agency is usually paid a success fee, often calculated as a percentage of salary. That can be useful when a company wants access to an external network, but it can also create a CV-forwarding dynamic if the process is not managed carefully.
The middle option
Some startups do not need months of embedded help, but they also do not want a percentage-of-salary agency fee. For one key hire or a small group of related hires, fixed-price recruiting support can be a cleaner middle option: a defined project, fixed price and specific hiring outcome.
| Question | Fractional recruiter | Recruitment agency |
|---|---|---|
| Where do they work? | Closer to the internal team and hiring process. | Usually outside the business. |
| How are they paid? | Hourly, daily, monthly or project-based. | Often a percentage of salary. |
| Best for | Building process and delivering multiple or defined hires. | Accessing external candidate supply for specific searches. |
FAQs
Is a fractional recruiter cheaper than an agency?
Not always, but the pricing is usually more predictable and not tied to a percentage of salary.
Can a fractional recruiter make just one hire?
Yes, especially if the work is structured as a fixed-price project rather than an open-ended monthly engagement.
When is an agency still useful?
An agency can still be useful for niche searches, confidential searches, or when the company is comfortable with a percentage fee and wants external coverage.
Related guides
Need hiring support without defaulting to agency fees?
ScaleUp Talent Partners supports early-stage software, SaaS and AI companies with embedded and fractional recruiting support, plus fixed-price projects.
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