Recruiting service vs. staffing agency vs. hiring in-house: which is right for a trades business?
A plain comparison of the three ways a plumbing or HVAC business can fill roles — what each costs, what you get, and when each one makes sense.
By Jacob Crockett · CEO, HireAligned ·
The short answer.
Use a staffing agency for temporary surges, hire in-house if you have the time and a steady candidate flow, and use a recruiting service when you want permanent, fit-screened techs without doing the sourcing yourself. Most growing plumbing and HVAC businesses end up with the third option because the first is too temporary and the second eats the owner's week. Here's the honest comparison.
Staffing agency
What it is: Places temp or temp-to-perm workers who stay on the agency's payroll while working for you. You pay a marked-up hourly rate.
- Best for: Short-term surges — a big install season, covering an injury, a one-off project.
- The cost: A markup on every hour, every week, for as long as the worker is there. Cheap for a month, expensive for a year.
- The catch: Little fit screening, and the worker isn't really yours. Turnover and loyalty are someone else's problem — which means they're nobody's problem.
Hiring in-house
What it is: You write the ads, screen, interview, and onboard yourself (or a manager does).
- Best for: Owners with time, a strong local reputation, and steady inbound applicants.
- The cost: No per-hire fee — but a large hidden one. Skilled-trades roles take ~56 days to fill, that's the owner's time, and a rushed hire from a thin pool can cost 30–250% of salary when it fails.
- The catch: It only works if recruiting is actually a priority. For most owners it's the thing that gets dropped the moment a job site needs them.
Recruiting service (done-for-you)
What it is: A partner who sources, screens for fit, and hands you permanent candidates you employ directly — ideally keeping a pipeline warm so openings fill fast.
- Best for: Businesses that want to grow the team without turning the owner into a part-time recruiter.
- The cost: A flat or pipeline-based fee — more up front than in-house, but usually cheaper per good hire once you count the owner's time and the bad-hire risk it removes.
- The catch: Quality depends entirely on the partner. A good one screens for culture fit and builds a bench; a bad one just forwards resumes.
Quick comparison
| Staffing agency | In-house | Recruiting service | |
|---|---|---|---|
| Hire type | Temporary | Permanent | Permanent |
| Who they work for | The agency | You | You |
| Fit screening | Minimal | Up to you | Built in |
| Owner's time | Low | High | Low |
| Cost shape | Recurring markup | Hidden (time + risk) | Per-hire / pipeline fee |
| Best for | Surges | Steady inbound | Building a team |
How to choose
Ask one question: are you filling a gap or building a team? For a temporary gap, a staffing agency is fine. For a permanent team and you have the bandwidth, hire in-house. For a permanent team without the bandwidth — which is most growing trades businesses — a done-for-you recruiting service is the cheapest path to good hires once you price in everything in-house hiring quietly costs.
That third lane is what HireAligned runs for plumbing and HVAC businesses: we keep a pipeline of pre-screened, culture-fit techs so you get permanent hires without becoming your own recruiter.
Frequently asked questions
What's the difference between a staffing agency and a recruiting service?+
A staffing agency places temporary or temp-to-perm workers and typically marks up their hourly wage for as long as they're on your payroll. A recruiting service finds permanent, fit-screened hires you employ directly, usually for a flat or pipeline-based fee — so you own the relationship and the cost doesn't recur forever.
Is it cheaper to hire in-house or use a recruiting service?+
In-house hiring has no per-hire fee but a high hidden cost: the owner's time, slow time-to-fill, and the risk of a bad hire from a thin pool. A recruiting service costs more up front but is usually cheaper per good hire once you price in those hidden costs.
When should a trades business use a staffing agency?+
Staffing agencies make sense for short-term surges — a big seasonal job or covering an injury — where you need bodies fast and don't intend to keep them. For building a permanent, culture-fit team, a recruiting service or in-house process fits better.