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  • Writer's pictureStuart MacInnes

How Do Staffing Agencies Work?

Staffing agencies act as a bridge between employers and job seekers. Typically when companies don't have an internal recruitment department, or is seeking expert support for hiring key roles. There are typically 3 different recruitment models staffing agencies use:

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Temporary/Contract Recruitment

One of the most common models is temporary or contract staffing. With this approach, the staffing agency employs the workers and supplies them to companies on a temporary basis. This allows businesses to bring in extra help during busy periods or for specific projects without having to directly hire permanent employees.

The staffing agency handles recruiting, screening, interviewing, and even payroll for these temporary workers. Companies just pay the agency for the labor hours worked by the temps. It provides flexibility but the downside is high turnover and lack of long-term employee investment.

Retained Search Recruitment

The retained search model is often used for executive, senior, and specialized hiring needs. With retained search, the company pays the staffing firm an upfront fee to commence the recruitment process.

The agency works exclusively for that client during the search. Fees can be higher with this model but clients get a designated recruitment team solely focused on filling their specific roles. It's best for difficult, critical hires where expertise and commitment is valued over cost.

Contingent Recruitment

The third common type is contingent recruitment, often considered the best option for businesses looking to grow their permanent workforce in a cost-effective way. With contingent, the staffing agency invests their own time and resources into recruiting for the role. The agency only gets paid if the company actually hires one of the candidates they provided.

There are no upfront fees for employers with this model. Staffing firms are incentivized to find the best talent quickly to get paid their fee, which is typically a percentage of the hired employee's first year salary. Some agencies offer a guarantee as well, allowing replacements for a period if the hire doesn't work out.

The contingent model aligns agency and employer incentives while giving companies the benefit of the agency's recruiting resources and expertise. Businesses can grow their teams without the hassle of advertising, screening resumes, interviewing, etc. It provides a risk-free way to leverage professional recruiters and outsource hiring great talent.

Overall, staffing agencies provide companies with scalable options for finding qualified talent through temporary/contract staffing, retained search, or contingent recruitment models.

For most businesses looking to cost-effectively grow, the contingent recruitment approach offers the advantages of professional recruiters and a no questions asked guarantee, without the financial risk of permanent hiring until the right candidates are secured.

BDA Recruitment works exclusively on a Contingent Recruitment model with a 30, 60, or 90 day no questions asked guarantee.

We believe out clients should only pay us for value and quality hires we deliver. Our goal is typically to deliver multiple interviews within 3 - 10 days!

Contact BDA Recruitment today for more information or interviews as early as this week!


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