Staffing Agency
A staffing agency is a firm that recruits, screens, and places workers with employers — on a temporary, temp-to-hire, contract, or permanent basis.
Employers use staffing agencies to fill roles faster and to offload the work of sourcing and vetting candidates. Depending on the arrangement, the agency may keep the worker on its own payroll (handling wages, taxes, and compliance) and bill the employer an hourly rate, or it may refer a candidate the employer hires directly in exchange for a placement fee.
Agencies often specialize — by industry (healthcare, manufacturing, IT), by role type, or by geography. That focus is usually what lets them fill a specific opening quickly, because they already maintain a network of relevant candidates.
Frequently asked questions
How do staffing agencies make money?
On temporary placements, an agency bills the employer more than it pays the worker; the difference (the markup) covers payroll taxes, benefits, insurance, overhead, and profit. On direct-hire placements, the agency charges a one-time placement fee, usually a percentage of the hire's first-year pay.
Related terms
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