China Hiring: Search Internally or Use an External Agency?
With the market softening in China and the supply of candidates currently greater than the demand for jobs, many companies choose to search internally rather than work with an external recruitment agency. There is no universal right or wrong answer, it depends on the level of the role, the urgency, the internal resources available, and the specific situation of the company.
For large, well known brands with established talent acquisition teams, it is often easier to attract candidates, especially for middle level roles and sometimes even more senior positions. Many internal recruiters in these companies come from agency backgrounds, and the strength of the brand alone can generate strong interest in the market.
However, one mistake I see some companies make is running an internal search for two to three months, and only after struggling to find the right candidate do they engage external agencies. Often they engage several agencies at the same time on a nonexclusive basis. At that point the process can turn into a competition, not only between agencies but sometimes between the internal talent acquisition team and the external partners. The focus shifts from alignment and quality to coverage and speed, which does not always lead to better outcomes.
For medium sized companies, the decision often comes down to capacity. If there is a dedicated talent acquisition professional or an HR business partner whose responsibilities include recruitment, then junior to middle level roles can often be managed internally. However, demand and workload matter, if there are forty or fifty open roles and only one person responsible for hiring, it becomes unrealistic to expect consistent quality across all searches. In these situations, external agencies add value not only by accessing talent, but by freeing up time and allowing internal teams to focus on their highest priorities.
When it comes to mid to senior level roles, companies should more seriously consider whether external support makes sense, regardless of company size. Larger companies may find it easier to attract candidates, but attraction alone is not the only factor. Managing volume, filtering effectively, and engaging the right people in a thoughtful way takes time.
Consider a scenario where a company posts a senior role online and receives several hundred applications, along with additional CVs through referrals and other channels. Reviewing that volume properly and conducting structured interviews requires significant time and internal coordination. If the role is urgent, a process that drags on for three to six months can be costly. It is not uncommon to see the same senior job posting remain online for close to a year.
A good recruiter should be able to reduce that burden. Instead of the company conducting fifteen or twenty first round interviews, the recruiter can present three to five well screened candidates who have already been qualified in depth. For recruiters who specialize in a specific niche, this should be the minimum standard. If a company is not receiving that level of service, they should reassess whether the partnership is the right one.
Another factor that is often underestimated, especially at the senior level, is that candidates value having someone represent them. Negotiating compensation, clarifying expectations, arranging interviews, and raising sensitive questions are not always easy conversations to have directly with a potential employer. A recruiter can act as a bridge between both sides, helping to manage expectations and maintain momentum throughout the process.
If a company decides to engage an external agency, it is also important to remember that more does not always mean better. Engaging multiple agencies at the same time can create confusion in the market, duplicate candidate outreach, and weaken accountability. For senior roles in particular, a focused and well managed partnership often leads to better alignment, stronger candidate experience, and ultimately better results.
Overall, there is no single correct way to recruit in China. Internal teams can run strong processes in the right circumstances, and external agencies can add significant value when used appropriately. The key is to be realistic about internal capacity, market dynamics, and the level of the role, and to choose the approach that aligns best with the situation.
