Writing · Guide · Recruiting models · Updated September 29, 2026

Recruiting without a recruiting team: fractional vs. agency vs. in-house

Before a startup has a recruiting team, there are three ways to hire: pay an agency per hire, bring on a fractional recruiter, or hire a recruiter full-time. The right one depends on how many hires you’re making and how much of the process you want to own.

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Side by side

Fractional vs. agency vs. in-house recruiter

AgencyFractionalIn-house
How you pay20–30% of first-year salary, per hireHourly or monthly retainerSalary, benefits and tools
Best forOne or two hard searchesA few hires over a few monthsSteady hiring all year
Time to startDaysDaysMonths to hire and ramp
Who owns the pipelineThe agencyYou, in your ATSYou
Interview loop designRarely includedIncludedIncluded
When hiring stopsNothing owedEnd the retainerStill on payroll

The math

What three hires cost through an agency

$150,000Agency fees on three hires at $200k base and a 25% fee

Agency

When a recruiting agency is the right call

An agency makes sense for one hard search you’d rather pay for on success, or a role you’ll never hire for again. Expect 20–30% of first-year salary per hire, and expect the candidates and notes to stay in the agency’s system.

Fractional

When a fractional recruiter is the right call

A fractional recruiter works on your searches part of the week, inside your tools, for as long as you’re hiring. You pay for the time, not per head, so there’s no reason to push a candidate who isn’t right. It fits the stretch between your first hire and your first recruiter: a few hires at once, then a quiet spell.

In-house

When to hire an in-house recruiter

A full-time recruiter is right once hiring is constant. Before that, you pay a salary through the quiet months, and a new recruiter needs time to learn your company and build a network in your market.

Orbit Hires

Where Orbit Hires fits

We’re a fractional model with a search firm’s sourcing. One monthly retainer covers up to three open roles at a time, with no placement fee. We work inside your Slack and your ATS, source on software we built, and start with a free market map, so you can judge the work before you pay for it.

GuaranteeFive qualified intros on your calendar in the first 30 days, or the next month is on us.

FAQ

Questions founders ask

Is a fractional recruiter cheaper than an agency?
On more than one hire, usually. An agency charges per hire, so the cost grows with every seat. A retainer costs the same whether you fill one role or three.
What’s the difference between a fractional and an embedded recruiter?
Fractional describes the time: part of the week, for a set period. Embedded describes where the work happens: inside your Slack, your ATS and your hiring team. The good ones are both.
When should a startup hire its first in-house recruiter?
When hiring is steady enough to keep one busy every month of the year. Until then, fractional or agency support usually costs less.
Can we start fractional and move in-house later?
Yes. Because the work lives in your ATS, your first recruiter inherits the pipeline, the interview plans and the scorecards.

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