Recruitment agencies are a vital resource for job seekers and employers alike, but not all recruitment agencies are created equal. If you’re starting your own agency or looking to work with one, it’s important to understand the different types available, each with its own unique focus and offerings.
1. Temp Agencies:
Temp or staffing agencies specialize in providing temporary workers to companies across various industries. From filling roles during maternity leaves to providing support during busy seasons, temp agencies offer a range of staffing solutions. Candidates employed through a temp agency receive hourly wages and benefits funded by the agency which are then reclaimed from the employer.
2. Contingency Agencies:
Contingency agencies work on a ‘no placement, no fee’ basis, hence they only receive payment if the candidate they put forward gets the job. These agencies often compete with a company’s internal HR team and must provide added support such as interview coaching and salary negotiation to stand out. If an employee leaves within a certain period, typically during their probation, a rebate or replacement clause is imposed.
3. Retained Agencies:
Retained agencies are generally hired to recruit for senior positions or carry out executive searches. The agency is paid a non-refundable fee upfront for sourcing candidates and is further paid upon candidate placement. These agencies invest significant resources into approaching candidates directly, and therefore charge a higher fee for each placed position.
4. Niche Agencies:
Niche or specialist agencies specialize in recruiting for specific sectors of the job market, such as IT, finance, digital marketing, and engineering. With their industry-specific knowledge, they offer expert advice to candidates and have high standards when putting them forward for interviews. Niche agencies may operate on a temp, contingency, or retained basis and often approach candidates directly.
In conclusion, the above-listed recruitment agencies, offer unique approaches to finding the right candidate for every position. Whether starting up or looking for a new role, understanding the different types of recruitment agencies available will help you make more informed decisions.