how do staffing agencies work

How Do Staffing Agencies work?

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It’s time to find that ideal candidate, the “purple squirrel,” as they say in the recruiting industry, but you’re confused about where to start. You’ve been told you might find it beneficial to work with a Staffing Agency, but you’re not convinced. Every time you ask yourself, “How do staffing agencies work?” you become more confused than ever.

It’s time to clear your confusion. Your business deserves the best employees, but picking them a large pool of candidates requires expertise and time. That’s where the Staffing Agencies come in. They have mastered the skills to select candidates that resonate with your Company. Today, we help many employers with the hiring process, from start to end.

Role of Staffing Agencies

Staffing agencies hire employees based on the employer’s requirements. Using their expertise, research, and contacts, they hire for various positions (full-time, contract, and part-time). They can be industry-specific or hire for multiple industries. 

From job opening to hiring, here is how staffing agencies work:

Employers connect with the Agency

Employers contact the Staffing Agency when they need to hire a new employee. They specify the job requirements, total employees needed, the charges they will pay, and the kind of job opening (part-time or full time). Based on this information, the agency prepares a job description, markets it on its website, and starts the candidate-hunt. The Agency can use several search methods, ranging from Social Media to Other Professional Networks. 

Candidates apply

There are many approaches Candidates take to secure a job. Browsing job boards and Staffing Agencies’ sites and connecting with them are the common ones. The Staffing agencies review the skills and background of the applicants and determine if they’re suitable for the opening. The agency shortlists and proceeds with the candidates it deems suitable for the opening. It manages the entire hiring process and also gives feedback to the candidates on how to improve. 


After shortlisting the candidates, the agency performs screening interviews. Employers may participate in the interviews if they’re looking for a specific skill-set that the Staffing Agency may not determine. Staffing agencies introduce the shortlisted candidates to the Employers, who decide which candidates to select. 

Contracts and pay

The agencies manage most of the paperwork, such as handling the candidates’ contracts and discharging them when necessary. They handle employment taxes, including Social Security and payroll. Employers can save time & energy by leveraging staffing agencies’ services. For temporary job openings, staffing agencies pay the employees directly. When the candidates get hired by the company for which they were part of a temporary job and did well, they take over the payroll.

If you still doubt what it’s like to work with a Staffing Agency, don’t worry. Here are the two most important questions about the Staffing Companies, answered. 

Why Choose a Staffing Agency When I Can Hire Myself?

Staffing agencies allocate a hundred percent of their time, honing the skills required to source the best candidates. Usually, the HR department of a Company doesn’t have that kind of expertise. Plus, staffing agencies eliminate many of the search’s burdens, pre-screening, and usually interview candidates before sending them on to you. This saves you a lot of time and capital. 

Do staffing agencies charge fees?

Staffing agencies charge fees to their clients for the amount of work the employee performs. Fees take many forms, including:

  • Markups vary between 25% and 100% of the employee’s wages. The percentage differs according to factors like salary or location. For instance, with a 50% markup, if the employee’s salary is $10/hour, the employer might pay $15/hour to the agency.
  • Agencies may also charge an extra fee on top of this percentage for filling the position. For temporary openings, it will be deducted regularly. However, it will be a one-time fee for permanent roles.
  • For temp-to-hire contracts, which allow employers to retain the employee for a longer period, they negotiate and pay a contract buy-out. It is essential to note that temp-to-hire doesn’t assure permanent employment after the temporary period but gives the possibility of transition.

Final Words

By understanding the above parameters, we hope you’ve gotten an idea whether joining hands with a staffing agency decreases risk or further imposes it. Only the right employees can help your business grow, and only the right staffing agency can help you discover them smoothly. So, take your call accordingly!

Services Offered by Recruitment Agencies

Services Offered by Recruitment Agencies

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Services Offered by recruitment agencies 


Contingent Search

Contingency search is a low-risk way to find incredible candidates. By opting for our contingent search services, you only pay if you decide to hire the candidates shortlisted by us. Thanks to the incredible connections of our recruiters, they have the ability to fill even the toughest roles in your organization, through contingent search. With our own extensive database of  active and passive candidates, we are able to narrow down the search and shortlist candidates in record time. At OPI, we don’t believe in sending our clients a large number of resumes and taking a lot of your time. Instead, we pre-screen candidates at our end to send only the most appropriate and qualified ones. Our team of expert contingent recruiters extend a helping hand at every stage of the process, right from interview scheduling to candidate on-boarding. A well-thought out contingent search and execution methods are our biggest USPs.


Retained Search

With OPI’s retained search services, you pay an upfront fee to get a dedicated team of highly-skilled recruiters that work exclusively with your organization to close all the vacant positions. Mediocrity is something we don’t believe in and that is why we go above and beyond to find the right talent for your firm. If you want to close an important or senior position in your company as soon as possible, then OPI’s retained search services is the way to go. As soon as our dedicated recruitment team comes on board, we conduct an in-depth assessment of your hiring needs and create a customized recruitment plan for your organization. By connecting with talent in our database and other passive candidates, we make sure to forward you only the best, pre-screened candidates that are the perfect fit for the job and can join the company according to your set timeline.

Contained Search

When you are looking to fill in critical positions in your organization within a stipulated time frame, nothing is better than OPI’s contained search service. It is a combination of our retained and contingent search services, which ends up saving your organization both money and time. By opting for our contained search services, you get a dedicated team working exclusively for you, but you do not pay the entire fee upfront. Instead, you pay a small amount of the total agreed fees upfront. The remaining fees is either payable in stages or after successful hiring of a candidate through us. Hence, you end up saving costs even while utilizing maximum resources.

Executive Search

With OPI’s executive search services, you are able to close leadership positions in your organization in the most discrete and effective way possible. Through our executive search services, we help you find future ready leaders who share the same values as your organization and can take your business to a greater success. When it comes to filling leadership positions, we take our time to understand the strategic goals of your company, and the competencies expected from the ideal candidate. By taking advantage of our contacts, high level professional network, internal research resources, and industry knowledge, we are able to identify the right people suitable for the position. Our recruiters understand that when they are hiring for an executive positions, the stakes are high. That is why, they don’t just find the perfect candidate, but they also make sure to impress the candidate and sell your company to them. We talk to them in detail to explain why joining your company would be the right career move for them.


We also assist you in managing candidate expectations and serving as a trusted advisor throughout the recruitment process.

Global Recruitment and Staffing Market Research Report

US Jobs Report- November

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US Jobs Report- November

Event- On a seasonally adjusted basis, overall non farm employment increased by 261,000, and also the unemployment rate decreased to 4.1 percent in October, as stated by the US Bureau of Labor Statistics (BLS) within its own month-to-month jobs report. Short-term support services employment increased by 0.60% in October, including 18,300 projects. The temporary bureau insight speed was a listing 2.09%.

Analysis and Background- On a year-over-year (y/y) foundation (October 2017 around October 2016), overall non farm employment was up 1.4%, and month-to-month project profits have averaged roughly 167,000 within the past 1 2 weeks. Temporary assistance job was upward 4.1 percent y/y, with yearly job gains averaging approximately 10,100 within the past 1 2 weeks.

The economic industries that have drove complete non farm employment increase in October include leisure and hospitality (+106,000), healthcare (+33,500), and professional products and services, excluding temporary help (+31,700). The large gains in hospitality probable signify a comeback in hurricanes (past month, and the European sector dropped by 111,000 jobs). In general, you can find twelve sectors that added tasks in October and three decliners: advice (-1,000), herbal resources/mining (-2,000), and retail trade (-8,300).

BLS Re-Visions- The change in total non farm payroll work for August was revised from +169,000 to +208,000, and also the change to September has been revised from an drop of 33,000 to some gain of 18,000. Together with all these revisions, overall non farm employment profits throughout the two-month period have been 90,000 greater than previously reported.

The change from temporary assistance agencies labor for August has been revised from +7,500 into +8,700, and also the reversal because of September was revised from +5,900 to +7,800. With all these alterations, temporary assistance employment growth was 3,100 higher than previously reported.

Enforcement Industry Advisors’ viewpoint- Usually, 261,000 brand new tasks to get that month would be greeted with enthusiasm. Nevertheless, since we have been following a month with deflated employment because of hurricanes, ” the current job report has been under the Bloomberg consensus of 325,000. However, adding the substantial upward revisions from the last two weeks could set the total profit over 325,000. Altogether, this month’s report was a decent 1 in terms of job gains. About the other side, the drop in the unemployment rate to 4.1 percent from 4.2 percent was utterly driven by folks departing the labor force.

The report has been good news to get temporary US staffing, even while the momentary help penetration rate reached a record 2.09 percent, particularly impressive offered the job profits in total function. The development in 18,300 temporary help projects last month could be the largest advantage since November 20-16 (even though that month was followed closely by a significant decline in December, the last calendar month temporary aid jobs dropped). The industry would need in order to avoid this sort of change per month as a way to throw a perfect match in 2017 (proceed the whole year with out per month of occupation reductions); only two more months to really go.