Placement Agencies versus Recruitment Agencies

Understanding the difference between placement agency and recruitment agency

Looking for a job is no easy task. It takes time, dedication and perseverance to hunt and find a suitable job. Developing a competitive resume and cover letter can also be onerous for jobs seekers as it takes a certain amount of skill to understand this craft. If you are in job search mode and are curious about resources out there to help you, you may consider contacting recruiters and staffing agencies to help. However, before you do, be sure that you have a clear understanding of the difference between a placement/staffing agency and a recruitment firm.

Placement or Staffing Agencies

Staffing agencies are also referred to as employment agencies, placement agencies or temporary agencies. These companies match workers with jobs and have a database of job seekers who are qualified for very specific types of roles. For example, if an organization was looking to back-fill a 3-month secretarial role, they could reach out to a staffing agency who had a list of properly trained candidates that could fill the role.

Staffing agencies essentially work for job seekers. In term of pay, staffing or placement agencies are the ‘middle-men’ and are responsible for paying the staff after receiving funds from the employer. You should never have to pay to work with these agencies as they take their cut from the employer.

Recruitment Agencies

Recruitment agencies work for organizations. They help locate and fill job vacancies. Recruitment firms often specialize in finding candidates in very specific fields. Often these field are in high demand. For example, a banking corporation may outsource their recruitment efforts by employing a recruitment agency to post, interview and hire candidates.

Here are some examples of typical specialized recruitment firms:

• IT recruitment agency

• Health/technology/financial recruitment agency

• Secretarial/executive/legal recruitment agency

• Teacher/police recruitment agency

Different companies work with recruitment agencies to fill different needs. Typical reasons include:

• Providing support to hiring managers if there is no internal recruiting or human resources team

• Identifying hard to find or highly-specialized talent

• Finding job candidates from outside the company’s own networks of people

• Assisting in-house recruiter during a hiring spree or growth spurt

• Maintaining confidentiality during a sensitive search

• Replacing altogether the need for an in-house recruiting function

Although recruitment firms work for the employer, as a job seeker you would want to make yourself visible to these recruitment firms. Especially if your skills and expertise fall within their portfolio. This would be a win-win for both parties.

Executive Recruitment

Executive Recruitment Firms

Executive recruitment firms are a type of recruitment agency that specializes in executive level jobs. For example, if a large corporation has a executive position to fill they will often hire an outside agency to help locate or ‘hunt’ for ideal candidates. These agencies are also referred to as ‘head-hunters’. Head-hunters work for employers (not job seekers) and would reach out to you (as a representative of the employer) to see if you have an interest in an executive level position.

If you are contacted by a head-hunter, rest assured that you have no financial obligation when working with then. Head-hunters or executive recruitment firms are paid by the employer when/if they find a good candidate.

Here are some reasons why an executive head-hunter would likely be retained:

• The opportunity is a fairly senior executive role (including c-suite and board positions)

• The successful candidate is likely to have a significant impact on the hiring organisation. Employing the wrong candidate can cost the company thousands of dollars. For this reason, employers would rather pay an agency to locate these ideal candidates as opposed to sift through applications of moderately qualified candidates.

• There is a shortage of talent available for the role and the best talent may not be actively job seeking.

• There is a confidential element to the search. For example, someone is getting fired or retiring and there is a contingency plan needs to be in place.

Conclusion

After reviewing the above information, I hope it is clear on the differences between a placement or staffing agency versus a recruitment firm. As a job seeker, you have the option of reaching out to both types of agencies but be clear on what purpose each agency serves.

If you are a busy executive and need job search support, considering hiring one of our Executive Job Search Specialist to assist you.