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Where a Lean Recruiting Team Runs Out of Capacity

Many companies cut their recruiting teams in 2023 and 2024 and now face rising hiring volume. Why the shortfall is hard to see, why new hires and agencies are slow or expensive fixes, and where the bottleneck actually sits.

Recruitment Automation Tools5 min read
Where a Lean Recruiting Team Runs Out of Capacity

When a company cuts its recruiting team, the decision usually makes sense on the day it's made. Hiring has slowed, the pipeline is manageable, and recruiting sits in G&A, which is where cost cuts are easiest to find. A lot of companies made exactly that call during the broad cost reductions of 2023 and 2024.

The trouble is that nobody revisits the decision when the reasons for it go away. Markets recovered and hiring volume came back, but headcount plans are sticky. So there are now recruiting teams sized for a freeze trying to run a hiring push, and many of them haven't quite noticed, because a capacity problem rarely looks like one.

What it looks like instead is a string of separate annoyances. Time-to-fill drifts up, say from 23 days to 38 and then 45, and each extra week comes with its own explanation. Hiring managers start escalating to HR about roles that should have closed two months ago. A candidate who was close to an offer takes a job somewhere else while your process was still running. None of this reads as "we don't have enough recruiters." It reads as bad luck, or a slow hiring manager, or a hard market.

It helps to picture one recruiter. Suppose she's carrying twenty open reqs, which is roughly where a lot of lean teams are right now. She can't give any single role the attention it takes to produce a good shortlist inside three weeks. There isn't enough of her to go around, though every hiring manager assumes their role is the one she's working on.

The obvious response is to hire more recruiters, and in the long run that's probably right. But it's slow. A new recruiter inherits a backlog, has to learn your ATS, and needs time to build relationships with hiring managers before they can close roles on their own. That takes months. If the surge is this quarter, a team that's back at full strength next quarter doesn't help much.

The other obvious response is an agency. Agencies do solve the volume problem, but placement fees typically run 15 to 20 percent of first-year salary. Suppose you're filling 30 roles at an average salary of $80,000. At those rates a single quarter of hiring could cost you well over $350,000 in fees, which is enough to undo whatever the recruiting cuts were meant to save.

So neither standard fix works on the timescale that matters. That's a good reason to look more carefully at where a lean team actually runs out of capacity, because I don't think it runs out everywhere at once.

Most of what happens after a shortlist exists is fine at small team sizes. Interviews, assessments and offers involve a few candidates per role, and a small team can keep up with them. What breaks is first contact. A recruiter can do maybe eight to twelve good screening calls in a day. One competitive campaign for a mid-market role can bring in 200 applications in its first week. If you screened only half of those, that's around two working weeks of nothing but phone calls for one recruiter, and she has nineteen other reqs.

The gap between how many people apply and how many the team can talk to is where hiring timelines fall apart, and they don't fall apart evenly. Whoever is still in your process at day 45 isn't a random sample of who applied. The best-qualified candidates usually have the most options, so they're the ones who were gone by week three. A slow screen delays the hire and also quietly lowers the quality of who's left to choose from.

This is the specific problem we built Asendia around. If the bottleneck is first contact, that's the step to take off the recruiters' plate, and there's no reason for it to wait for business hours. Seen from the applicant's side, it goes like this: they apply, and usually that same evening their phone rings. Instead of waiting for Monday, when someone finally gets to the queue, they're talking through the role, answering questions about their experience against the criteria for that job and getting follow-up questions based on what they actually said. For them it's a real conversation, and an early one. Afterwards the summary goes into the ATS, so the recruiters start from a ranked shortlist of people who have already been talked to properly, and they still do everything after that.

What makes this a fit for the capacity problem in particular is that it avoids what's wrong with the two standard fixes. There's no ramp-up period and no fee per placement. It also doesn't run out of hours. With 80 applications still waiting at the end of a Tuesday, it just keeps calling, and it screens the same way on a Friday afternoon as it does on Monday morning.

There's a broader question here about whether AI should carry out pipeline steps itself or only help a person do them. I think it should do more of them, and the post on agentic recruiting makes that case in more detail.

Hiring more recruiters is still probably the right long-term answer. It's just the wrong answer for the next 90 days. If your time-to-fill has been creeping up and every delayed role seems to have its own excuse, I'd check first whether the cause is just that nobody has had time to call the applicants.

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Badis Zormati

Co-Founder, Asendia AI

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