Centralized vs. decentralized hiring in enterprise teams

Ultimately, this question comes down to where hiring sits and how decisions are made.

In enterprise teams, a central group (often a dedicated talent acquisition or HR team) can set the direction, or decisions can be pushed closer to individual teams and regions.

That’s the core difference between centralized and decentralized hiring, but let’s dig a little deeper into each model.

What centralized recruitment looks like

In a centralized setup, a core talent or HR team owns most of the hiring process. This team typically defines workflows, sets standards, and handles approvals.

Individual hiring managers still play a role, but the center has clear authority over hiring and decisions. In day-to-day terms, centralized hiring shows up in things like:

• Shared processes across the organization
• Consistent interview steps
• Common job structures and descriptions
• Clearer oversight into hiring activity, approvals, and outcomes
• Standardized candidate experiences across teams and regions
• Centralized reporting and visibility into hiring data

Put simply, it pulls a lot of moving parts together and, for that reason, it’s very common at scale.

In one survey, 71% of organizations reported using a centralized operating model, likely because it supports several enterprise priorities: consistency, visibility, and risk management. 

What decentralized recruitment looks like

In a decentralized model, hiring decisions sit much closer to the business. Individual teams, functions, or regions have greater ownership over when they hire, how they evaluate candidates, and what success looks like.

Central teams might still offer guidance or support, but they don’t maintain a tight grip on the process. Day-to-day, you’ll see decentralized hiring show up through:

• Hiring decisions are made at the team, function, or regional level
• Interview processes tailored to specific roles or markets
• Greater flexibility in how and when roles are filled
• Faster decision-making with fewer centralized approvals
• Hiring practices influenced by local context and business needs
• Less consistent data, reporting, and candidate experience across teams

A decentralized model pushes hiring closer to the people who feel the need most acutely. This reflects how many enterprise teams already operate, especially in organizations with diverse roles, regions, or business units.

At smaller scales, your hiring structure feels more straightforward. One approach works well enough, decisions move quickly, and any snags are relatively easy to smooth over. But this simplicity disappears at enterprise scale.

More roles, more regions, and more stakeholders mean hiring decisions carry more weight (and more consequences). Teams start feeling pressure from all sides, and the competing priorities become impossible to ignore.

Most enterprise debates about hiring structure tend to come back to a few recurring tensions:

• Speed vs. consistency: The business wants to fill roles fast, especially in competitive or fast-moving markets. According to a recent survey, 73% of hiring professionals in certain industries feel pressure to hire quickly. But, at the same time, enterprise hiring teams are expected to deliver consistent processes, fair evaluations, and predictable candidate experiences. Moving faster makes consistency tough (and can even lead to poor hiring decisions), but adding guardrails slows things down.
• Local context vs. global standards: Hiring rarely looks the same across regions or functions. Local teams need room to adapt to their markets and day-to-day realities, while central teams are trying to create standards that hold up across the whole organization.For example, Chris Dodds, Head of Talent Acquisition at LOCALiQ, notes that, while many of the company’s roles “are relatively consistent, it’s important that we remain responsive to the unique challenges and nuances present in each region.” Those two goals can often butt heads. In a Deloitte survey, only 7% of HR executives said their organization was doing an “excellent” job of managing consistent talent processes and systems around the world.
• Risk management vs. autonomy: As hiring volume goes up, so does risk exposure. Inconsistent processes can create compliance gaps, lead to uneven decision-making, or foster perceptions of unfairness.Centralizing decisions reduces this risk, but it often means taking control away from the teams closest to the work. None of this is unusual (or a sign that your hiring teams are failing or chose the wrong model). These pressures inevitably come up as a natural part of growth.

Needless to say, centralized vs. decentralized hiring is a sticky debate without a clear winner. Both models solve real problems, but they also both introduce new ones. Seeing the strengths and limits of each option makes it easier to understand why most enterprise teams struggle to fully commit to a single approach.

Strengths and limits of centralized hiring

Let’s start with centralized recruitment. This approach does several important things well:

• Consistency and fairness: Shared processes and standards make it easier to ensure candidates are evaluated in similar ways, regardless of team or location. When 68% of HR executives say their company’s hiring managers aren’t consistent when evaluating candidates, clear practices bring much-needed alignment.
• Visibility and reporting: Hiring data lives in one place, making it easier to track progress, identify bottlenecks, and spot trends across the business.
• Clearer ownership and accountability: When responsibility sits with a central team, it’s easier to understand who owns the process, who approves what, and who is accountable for outcomes. That clarity is especially important as compliance becomes more complex. 31% of employers say they expect increased regulatory scrutiny to raise the pressure they’re under (and the risks they’re facing) in 2026.

However, centralized hiring can introduce a couple of challenges, including:

• Bottlenecks: When all of the decisions and approvals need to run through one team, work can stack up quickly. These slowdowns can drag out your entire hiring process. It’s a common challenge among enterprises: 93% of hiring managers report the hiring process takes longer than it did two years ago. This sluggish pace frustrates your team and your candidates. A drawn-out process is one of the top three drivers of candidate dropoff.
• Distance from the business: It’s hard for central teams to have all of the context and details on specialized roles, local markets, and fast-changing priorities, which can serve as a source of frustration (and even errors).

Strengths and limits of decentralized hiring

Now let’s look at decentralized recruitment. This approach appeals to many enterprise teams for a few reasons:

• Speed and responsiveness: With fewer handoffs and approvals, teams can move faster and act on hiring needs as they crop up. Decisions happen closer to the work, which can reduce waiting and make the process feel more agile.
• Local ownership: Teams and regions have greater control over who they hire and how they assess candidates. This ownership can improve alignment with real business needs, allow for more tailored and nuanced decisions, and give managers a stronger sense of ownership over the process (and the outcomes). 
• Flexibility: Teams can adjust their hiring process to fit the roles they’re filling, the markets they’re hiring in, and the way their teams actually operate, instead of forcing every hire through the same path.

However, decentralized hiring can also introduce a different set of challenges:

• Misalignment and back-and-forth: When it’s not clear who owns the decision, teams can get stuck going back and forth, negotiating priorities, and waiting for sign-offs or updates. “It would take 10 conversations back and forth on chat to find out what’s going on,” explained Karen Blackburn, Head of Talent and Global Mobility at Lush, reflecting on a time when the company didn’t have any sort of central hiring visibility or support.
• Limited oversight and uneven experiences: Candidate experiences differ widely when your hiring practices are all over the board. Unfortunately, this inconsistency doesn’t go unnoticed, and it can fuel a lot of frustration among applicants. In recent research, the candidate resentment rate (a measure of negative experiences with the hiring process) is 38% higher in decentralized hiring than in centralized hiring. 

Again, there’s no “right” or perfect answer here. Centralized models prioritize clarity and control, while decentralized models prioritize speed and flexibility.

Each solves a different problem (and creates new ones). And that’s exactly why the centralized vs. decentralized hiring question keeps coming back up as enterprise teams grow and change.

If neither model is perfect, it’s no surprise that most enterprise teams don’t stay fully centralized or decentralized for long. Over time, friction points accumulate. Centralized structures can slow things down and feel disconnected from the business. But decentralized ones can start to drift and create gaps in visibility, fairness, and alignment.

That’s where hybrid approaches start to take shape. Instead of picking one extreme and sticking with it, many organizations start to blend the two. So, it’s not centralized vs. decentralized hiring. It’s centralized and decentralized hiring. 

It might seem like these models are in direct competition with each other, but you’ll likely be surprised by how much middle ground there is here.

For example, a central team might define your core process, approval paths, and compliance requirements, while local teams and regions decide how to run interviews, prioritize roles, and move candidates through the funnel. Hiring managers stay close to their markets and business needs, but they do so within those shared guardrails.

That’s exactly the approach Lush took. “We still want to have some autonomy within all of our shops,” shared Adam Barnes, UK&I Retailer at Lush.

So, with Pinpoint’s support, the global cosmetics retailer focused on balancing flexibility and structure. “Across the board now, all of our candidates are getting a more similar experience, and the communication they’re getting is much stronger.”

The goal is to protect what truly needs consistency without stripping teams of the autonomy they need to move forward. This balance rarely stays the same, and the line between what’s centralized and decentralized shifts as the organization changes.

It’s this very fluidity that allows you to create consistency (without slowing everything down). 

Once you know that a hybrid approach is inevitable, it’s time to decide where to draw the lines. You don’t need to hash this out in a single planning session. Leave room to adjust over time as you learn more about where things get stuck and what creates risk.

In terms of deciding what should be centralized vs. decentralized, these types of questions can be helpful:

• Does this need to be consistent everywhere? If a task or step has implications for fairness, compliance, or your employer brand, it’s often a fit for central ownership.
• Does this require local speed or context? If something needs to change quickly or depends heavily on team- or region-specific knowledge, it’s typically decentralized.
• Does this create risk if handled inconsistently? If it could expose the organization to legal, financial, or reputational risk, it’s likely to be handled centrally.
• Does this benefit from shared visibility? If a process needs to be tracked, reported on, or improved upon across the organization, it generally makes more sense to centralize it. 

Answers to those questions will shape how hiring responsibilities are split up. But remember, there’s no fixed formula. As your organization grows, your boundaries will shift.

What matters is always having clarity around who owns what, and being willing to revisit that balance when the business changes. 

Your hiring structure shapes everything from the experience candidates have to how fast your teams can move to how confident leaders feel in your processes and data. 

So, if the centralized vs. decentralized hiring conversation keeps coming up in your organization, consider it a sign that your team is feeling the friction (and you’ve likely outgrown your current approach). 

That’s when it’s time to pause and take a closer look. You don’t need to pick a side. Rather, make it your goal to understand what’s slowing you down, what needs more structure, and where flexibility still matters. From there, you can design a model that truly supports (rather than strains) how your team hires today. 

Ready to build a hiring process that works for your team? See how Pinpoint supports enterprise hiring.