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The Better Path: TA vs Agency

I didn’t spend a single day as a TA, so this is my quick disclaimer. 🙂 

Yet, it is not hard to imagine what a TA does.

Thankfully, I got friends who moved into TA roles so there is some backing on what I’m sharing here instead of just pure imagination.

First of all, TA stands for talent acquisition and is used to refer to in-house recruiters. Sizeable companies usually hire a TA or TA team, to offset the dependency on recruitment agencies.

The question today is which is a better career choice?

If you are at a crossroad in recruitment, these are the two common tracks.

Which would you choose and why?

I’m going to break it down and tell you why I decide to go with the agency route.

TA Is “Stable” As Long As…

…the company is stable.

Both TA and agency provide fixed salaries and though TA may earn a bit more, it’s not significantly more.

In terms of salary, I say 1 : 1. Neither side has a vast advantage.

However, what TA provides is stability because as a TA, you are usually receiving mandates from several hiring managers who provide a constant stream of “jobs".

TA also gets their year end performance bonus which may not be that attractive on paper compared to agency but in reality, agency commissions are hardly paid out successfully because most recruiters find it hard to hit those sales targets month on month or even quarterly.

This is real talk.

So when you see the 33-50% commission scheme the agency is pitching, it’s good to take into account that is a number made possible only when you hit your sales.

No sales or if you miss the mark by $1, you still can’t get the commission. That’s brutal, you say.

It is. Ain’t going to beat about the bush.

Some agencies provide pro-rated commission scheme, so they lower the commission rate according to how far away you are from the set target.

Seem better since some is better than none. This is humane but it does not help you long term because the focus is not to salvage what you can, but to be absolutely great at what you do, so that you make the income you desire.

Anyways…

The TA route takes away all this fantasy and disappointment. You have a slightly higher fixed base and a year end bonus as long as the company is doing good.

It is also more likely for TA to close their positions successfully compared to agencies.

The reason is simple. Since the company has already invested in the TA, the TA just has to do a reasonable job for most hires and the hiring managers will usually take their recommendations.

It also comes as no surprise that the TA being in the same organization has access to the hiring manager’s feedback more readily than agencies can ever dream of.

Agencies actually have to “dream” up what the hiring managers really want. This is not a joke, it’s real stuff but with experience, the dream gets closer each time.

On days when the search is impossibly tough, TA has the option to reach out to 3 to 4 contingency agencies concurrently to support the search.

So, in terms of work stress, TA seems to be better as they have a backup.

The caveat is that TA also does a lot of backend admin to close the hire and onboard the candidate. This admin can be tedious but it’s not necessary for agencies to deal with it.

Are you afraid of admin? If so, TA may not be your cup of tea. I once had a TA who almost lost the candidate because she messed up the admin, causing a very unpleasant experience for the candidate who wanted to walk away.

It was a close shave as we eventually reined back the candidate.

The point is, if you are not a detail oriented person, TA can pose a serious challenge because there are more backend admin to deal with.

Agency work is for those who prefer the laser-focused path of sales. You basically can take your hands off once the candidate and client sealed the offer in writing.

But Why Did I Choose Agency?

I started from agency and there is familiarity.

However, it is also due to the fact that I enjoy diversity and decided not to “lock” myself in any industry.

Who knows if it will rise or set?

The other reason which I came to realize later was the possibility of owning my agency with the experience gained.

It is not a walk in the park trying to run an agency and most TA are not geared to imagine that possibility.

It has nothing to do with ability. It’s mindset.

The agency recruiter is accustomed to being tossed about by the rough ocean of the business and at some point, I dare say most of us are already swimming in choppy waters.

All it takes is to shift our mindset from working for others to working for oneself.

Similar challenges exist but the financial upside is significantly greater.

This is not typical result (some people do much better) but when I went solo as a recruiter, I am able to 3-5x my income to 6 figure on an annual basis over the past 3 years despite the pandemic and economic recessions.

I also learnt a lot and grew as a solopreneur. It led me to take on initiatives and projects I would never had thought of if I had not gone down this route of agency to agency owner.

Agency also forces you to adjust quickly to different industries and as a result, you raise your adaptability which is a survival skill for all times.

TA has its internal challenges but to me, it is still a more sheltered environment where you would be “safe” as long as the company does good.

Look at the year 2020 / 2021, many TA teams were laid off and downsized as the pandemic took over.

Many TA struggled to pivot because their main staple across industries is affected seriously.

In the same period of time, you see more agency recruiters rising up, owning their solo businesses and doing what they always wanted.

The decision to go TA or agency is determined by your appetite. Neither is better than the other but if you align with me and prefer a career with no financial ceiling, agency would still be a better choice.

That’s my take.

p.s. Thank you to everyone who DM and booked a coaching call with me in February. We are in March now (Q1 is almost gone…time flies!) and if you are inspired to be your own boss and launch your agency, do get in touch and I will show you how to be a profitable agency owner.

p.p.s. A warm welcome to everyone who subscribed The Solo Recruiter since last week! You are now a part of this community that support one another to achieve greater results in recruitment business. 🎉 If you like the content, help share this resource to your network. 🙏

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