Recruitment is a staple sign of growth for the igaming affiliate industry, especially as smaller affiliates start to scale up to fulfil expansion plans. Cordelia Morgan-Cooper returns to explore which method suits the sector the best, or if a balance can be found.
The igaming industry is one of the fastest-growing sectors in the world. Fuelled by technological advancements, evolving regulations, and the increasing demand for online entertainment, this industry is flourishing. However, with rapid growth comes the challenge of building and maintaining a skilled workforce that can adapt to constant changes. As igaming companies navigate this dynamic landscape, recruitment strategies become not only necessary but also essential.
In the ever-changing landscape of the igaming industry can a mix of in-house recruitment and an outsourced model be the perfect balance?
Unique recruitment challenges
The igaming industry requires a diverse range of skills. From software developers and data analysts to legal experts and marketing professionals as well as language-specific roles, the talent pool needed to drive success is vast. However, finding individuals with the right blend of experience, skills, and passion can be difficult. Moreover, as regulations vary from region to region, understanding the legal landscape and ensuring compliance further complicates hiring decisions.
In such a competitive and ever-evolving market, recruiting the right talent quickly can make or break a company’s success. This is where the debate between in-house recruitment and outsourcing comes into play.
The case for in-house recruitment
In-house recruitment refers to the process of managing all hiring internally, with a dedicated HR or talent acquisition team working directly for the company. This approach offers several advantages:
Control over the hiring process: In-house recruiters have a deep understanding of the company culture, goals, and values. They can ensure that candidates are not only technically qualified but also a cultural fit, leading to better long-term retention.
Tailored talent acquisition: An internal team can develop a personalised recruitment strategy that aligns with the company’s needs. This allows for greater flexibility in adjusting hiring processes as the business grows and changes.
Direct communication: With an in-house team, communication between recruiters and hiring managers is more straightforward. This leads to faster decision-making, reduced delays, and a more streamlined hiring process. In just over three years at Catena Media, my team hired over 500 people and a lot of that was down to the strong communication flows we had internally.
An internal team can develop a personalised recruitment strategy that aligns with the company’s needs
Deep understanding of the business: One key benefit of an in-house team is the understanding of the business which is really crucial to getting candidate buy-in as they not only understand the challenges the business is facing but also the opportunities of working there. This level of understanding is tricky to be replicated by outsourced teams, it’s not impossible of course but takes a lot more work. When it comes to assessing culture fit and the ‘vibe’ of the business, this is also a key strength of an internal recruitment team. They don't need to be told what the business is like, they can feel it for themselves.
Support with projects outside of recruitment - Internal recruitment teams often work on many other projects outside of strictly talent acquisition responsibilities. This may include HR projects with the wider team and can encompass benefits mapping, market research, salary review analysis etc
However, in-house recruitment also has its limitations. Building and maintaining an internal recruitment team can be costly, particularly for smaller igaming companies or startups. Internal teams are also limited by their size. If the business they support suddenly needs to hire an entire new team for example this can be challenging and will often require external support.
The benefits of outsourcing
Having set up CMC Consulting in 2022 due to a gap in the market for recruitment consultancies that partners closely with igaming businesses for both HR and Recruitment requirements it's clear to see a number of key benefits with this model.
Access to a broader talent pool: Recruitment agencies often have access to a vast network of candidates, including those who may not be actively seeking new opportunities. This can be especially valuable when sourcing specialised or hard-to-find talent or what we call internally, unicorns.
By paying for recruitment services on an as-needed basis, businesses can avoid the overhead costs associated with maintaining a permanent HR department
Scalability: Outsourced recruitment and HR can be scaled up or down depending on the company’s needs. Whether a business is rapidly expanding or simply filling a few key roles, outsourcing allows for greater flexibility in managing hiring demands.
Expertise: Many recruitment agencies specialise in specific industries, including igaming. These agencies understand the nuances of the sector and can navigate regulatory complexities, making them valuable partners for companies looking to expand into new markets.
Cost-effectiveness: For companies that do not have the resources to build a full in-house team, outsourcing can be a cost-effective alternative. By paying for recruitment services on an as-needed basis, businesses can avoid the overhead costs associated with maintaining a permanent HR department.
However, communication between the company and the external agency may be less direct, leading to potential misalignment in expectations. Additionally, relying too heavily on outsourcing can make it difficult to build and maintain a strong internal company culture.
The hybrid approach
Given the pros and cons of both in-house recruitment and outsourcing, many igaming companies are turning to a hybrid approach. By combining the strengths of both models, businesses can achieve a balanced recruitment strategy that meets their specific needs. At CMC Consulting, we support businesses that have both internal recruitment teams (when they have needed to scale quickly) and also where we are working directly with the founders- helping them hire for the first key role.
Strategic flexibility: A hybrid model allows companies to leverage in-house recruitment for core positions that require a deep understanding of the company culture and long-term goals. Meanwhile, outsourcing can be used for specialised roles or to quickly scale hiring efforts during periods of growth.
Cost management: By using a mix of in-house and outsourced recruitment, companies can optimise their recruitment budget. Internal teams can focus on high-priority, high-impact hires, while outsourcing can be employed for volume hiring or hard-to-fill roles.
Agility in a competitive market: The igaming industry is fast-paced, and companies need to remain agile in their talent acquisition efforts. A hybrid approach provides the flexibility to quickly adapt to changing market conditions, such as entering new regions or expanding product offerings.
A hybrid model allows companies to leverage in-house recruitment for core positions that require a deep understanding of the company culture and long-term goals
Enhanced expertise and reach: By combining internal knowledge with external expertise, companies can create a recruitment strategy that taps into both localised understanding and global talent networks. This is particularly important for igaming businesses that operate in multiple jurisdictions and require a diverse skill set across different regions.
Finding the perfect balance
The igaming industry is a dynamic and competitive space where attracting and retaining top talent is critical to success. While both in-house recruitment and outsourcing have their advantages, a hybrid approach offers the flexibility, scalability, and expertise needed to thrive in this ever-changing landscape.
By carefully balancing internal resources with external support, igaming companies can create a recruitment strategy that not only meets immediate needs but also positions them for long-term growth. In an industry where adaptability is key, finding the perfect balance between in-house and outsourced recruitment may just be the winning formula.
Cordelia Morgan-Cooper
has over a decade of international HR and recruitment experience. She has developed a passion for driving happiness, wellbeing and success in the workplace, having seen first-hand the impact of an engaged workforce when it comes to both recruitment and employee retention.