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April 11, 2023 Comments (0)

A Definitive Guide on How Staffing Agencies Work

A staffing agency, also called a recruitment agency, employment agency, or staffing firm, is a company that helps employers fill job openings by matching them with suitable candidates.

Staffing agencies play an important role in the job market as they provide a valuable service to both job seekers and employers. For employers, staffing agencies can help to save time and money by pre-screening and qualifying candidates, conducting background checks, and other hiring tasks. For job seekers, staffing agencies can provide access to a wider range of job opportunities and help them find positions that match their skills and qualifications. Staffing agencies can also provide career guidance and support, helping job seekers to improve their resumes, prepare for interviews, and navigate the job market.


Types of Staffing Agencies

There are several types of staffing agencies, each with its own unique focus and specialties. Here are some of the most common types:

1. Traditional staffing agency

Traditional staffing agencies are companies that help organizations find and hire employees for temporary or permanent positions. Typically, traditional staffing agencies will work with a wide range of industries and provide staffing solutions for various roles, including administrative, clerical, light industrial, technical, and professional positions. In exchange for their services, traditional staffing agencies charge a fee, which is typically a percentage of the employee’s salary or hourly rate.

2. Contingency staffing agencies

Contingency staffing agencies are companies that specialize in providing temporary or contract employees to businesses on an as-needed basis. The term “contingency” refers to the fact that these agencies provide staffing solutions for businesses that have unexpected or fluctuating staffing needs. For example, a business might need extra workers to cover a busy season, to fill in for employees who are on leave, or to handle a sudden increase in demand for their products or services. Contingency staffing agencies typically have a pool of pre-screened and qualified candidates who are available to work on a temporary or contract basis.

3. Retained search staffing agencies

Unlike contingency staffing agencies, which only receive payment when a candidate is placed in a position, retained search staffing agencies are paid a retainer fee upfront to conduct a comprehensive search for the best candidates. The fee is typically a percentage of the position’s annual salary. Retained search staffing agencies typically have a well-established network of contacts and resources to identify and attract top candidates, and they often use a rigorous and thorough screening process to ensure that the candidates they present to the company are highly qualified and a good fit for the position and the company’s culture.


What Staffing Agencies Do

If you are curious as to how staffing agencies work, for example, if you are a job seeker in need of an agency for staffing in Australia, here are some general functions involved.

  • Client engagement

Client engagement is a critical aspect of a staffing agency’s operations, as it involves building and maintaining strong relationships with its clients. The first step in client engagement is to understand the client’s staffing requirements, such as the job positions that they need to fill, the required qualifications and experience, and the expected salary range. Staffing agencies typically conduct an initial consultation with the client to determine their needs and preferences.

  • Job posting and resume screening

When it comes to job postings, staffing agencies often work closely with their clients to create detailed job descriptions that accurately reflect the qualifications and experience required for the position. These job postings may be advertised on the agency’s website, job boards, social media platforms, or other relevant online platforms. Then, staffing agencies typically begin the process of screening resumes, where they look for a range of qualifications and experience that match the requirements of the job posting. This may include reviewing education and certification credentials, assessing previous work experience, and evaluating skills, such as communication, problem-solving, and teamwork.

  • Candidate selection and placement

Initial screening of candidates helps to narrow down the pool of candidates and identify the most suitable candidates for the job. Once the staffing agency identifies the best possible candidate, they facilitate the job offer and placement process, which includes negotiating salary and benefits, providing onboarding support, and ensuring a smooth transition into the new role.

  • Onboarding and follow-up

Staffing agencies are also responsible for preparing all necessary paperwork, such as employment agreements. Part of onboarding is coordinating and conducting orientations or training sessions for new hires to ensure they are familiar with company policies, safety procedures, and job requirements. They also check in with both clients and employees regularly to ensure that everything is running smoothly and serve as a mediator between the client and the employee, addressing any concerns that may arise during employment.


Considerations When looking for the Right Staffing Agency

Right Staffing Agency

When looking for a staffing agency, such as an offshore staffing agency, there are several considerations to keep in mind. Some of these are the following.

1. Compliance with employment laws

It’s essential to choose a staffing agency that is compliant with all relevant employment laws and regulations, such as those related to equal employment opportunities, minimum wage requirements, and employee benefits. This will help ensure that you are not exposed to legal liabilities and that your workers are being treated fairly.

2. Protecting candidate privacy

The staffing agency should have policies and procedures in place to protect the privacy and confidentiality of job candidates. This includes taking appropriate measures to safeguard personal information and only sharing it with authorised parties. Additionally, the agency should be transparent about how it handles candidate data and provides clear information about candidate rights and options.

3. Maintaining transparency and fairness

The staffing agency should maintain transparency and fairness in all its dealings with candidates and clients. This includes providing clear and accurate information about job opportunities, pay rates, and job requirements, as well as treating all candidates and clients equally and without discrimination. The agency should also have a clear process for resolving disputes or complaints and be willing to work collaboratively with both candidates and clients to achieve positive outcomes.


Other factors to consider when choosing a staffing agency include their experience and reputation in the industry, their ability to provide quality candidates quickly, and their commitment to customer service and support. This is where we at Staffhouse International Resources, a top Australian staffing agency, come in. Being a duly licensed recruitment agency with years of experience under our belt, you can never go wrong with us, whether you are a jobseeker or an employer looking for staffing agencies in Australia or other parts of the world.

If you are a job seeker in need of agency staffing, learn about the job offers available by following the Staffhouse Facebook page. If you are an employer, contact us to know more about our recruitment services.