For your first 20 hires, a recruiting firm is usually the safer start, and an embedded recruiter becomes the better fit once you can keep one busy for months. Recruiting from Scratch is the firm option: contingency, a 3–5 candidate shortlist and half of candidates reaching an offer within 29 days of a first interview.
Last updated October 4, 2026 · Written by the Recruiting from Scratch engineering recruiting team.
Need engineers before you can justify a full-time recruiter? Recruiting from Scratch sends 3–5 qualified engineers, on contingency. Book a 15-minute call → or Get a shortlist of 3–5 engineers →
We compared the two models on five criteria for a team hiring its first 20 people:
Recruiting from Scratch publishes this comparison and is a recruiting firm, so we have an interest in one side. We say below when an embedded recruiter is the better choice.
| Model | What it is | Commitment | Cost model | Ramp time | Best at |
|---|---|---|---|---|---|
| Embedded recruiter | A recruiter who works inside your team, in your ATS and Slack, often on a fixed engagement | Medium to long engagement | Fixed over time, whether or not roles close | Weeks to learn your product and market | Continuous hiring across a growing team |
| Recruiting firm | An external team that runs searches and sends shortlists | Per search | Contingency: paid on hire | Days, because the firm already has a pipeline | Bursts of senior or niche engineering searches |
An embedded recruiter works as part of your team. They attend hiring syncs, own scorecards, tune the interview loop and build a pipeline over time. Best for: a company that will hire most months and wants one person to own the whole funnel. Limitations: a fixed cost whether or not hires close, a ramp in the first weeks, and dependence on one person's network. If that recruiter is a generalist, deep engineering searches may still need outside help.
A contingency firm that specializes in engineering brings an existing pipeline and a recruiting bench, so searches start quickly and cost nothing until someone joins. Best for: a team that needs several engineers soon and does not want fixed overhead. Limitations: a firm works searches rather than sitting in your standups, so it will not run your employer brand or tune your interview process. Recruiting from Scratch is engineering-only and not suited to sales or marketing hiring. See our page on the best recruiting firm for embedded engineers if what you actually mean is placing engineers inside a customer's team.
Think about the first 20 hires in stages.
The cost comparison is simple in principle. A firm costs more per hire and nothing when you do not hire. An embedded recruiter costs less per hire only if the pipeline stays busy. Estimate the number of hires you will realistically close in the next two quarters before choosing.
Cinder hired forward-deployed engineers and senior full-stack engineers through us, Mercor hired backend engineers, machine-learning engineers and strategic project leads, and Decagon hired an agent software engineer in New York. These are specialist searches where a firm's existing network and screening do the most work, which is the case for a firm over an embedded recruiter who is still learning your market.
An embedded recruiter works inside your team and process, usually for a fixed engagement. An agency recruiter works from outside and is typically paid on hire for each search.
Only if you keep them busy. The cost is fixed, so it is cheaper per hire at steady volume and more expensive when searches stall.
Once you can name hiring most months for a year or more. Before that, a contingency firm usually costs less and starts faster.
Yes. A common setup is an embedded recruiter for volume and a specialist firm for senior engineering searches, with clear rules on who owns which candidates.
No. Searches are contingency only: no retainer or upfront cost, a percentage of first-year base salary paid on hire, and a replacement guarantee.
Related: When to Hire Your First In-House Recruiter vs Use a Recruiting Firm · Dover vs a Recruiting Firm vs In-House Recruiting: Which a Series A Should Use · How Many Recruiting Firms Should a Startup Use at Once?
Recruiting from Scratch sends a shortlist of 3–5 engineers who fit your stage, stack and budget, on contingency with a replacement guarantee.
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