Recruitment Agency Definition

As a job seeker, looking for job vacancies can get tiresome. The candidate has to go through various job boards across different channels to look for the perfect job that suits them. A recruitment agency helps both the job seekers and the company find each other.

It is difficult to kick-start a career and make the right choices with limited options available in the market.

From an employer’s perspective, finding the most suitable candidates amongst thousands of job seekers to fill their vacant positions is time-consuming.

Finding a group of candidates who are qualified to pass the initial screening of the interview process expends resources.

A recruitment agency can help by selecting potential candidates for the employers and pointing the candidates to the right company.


Recruitment Agency Definition

A recruitment agency is an external firm that acts as a middle man for employers and potential candidates.

Employers cannot spend their time going through thousands of CVs and shortlisting them based on the job requirements. They can hire a recruitment agency to find candidates for their vacancies and help them with the hiring process to combat this.

A job seeker would try to find the right job through a recruitment agency. The agency has access to various recruiters and could set up the hiring process between their clients and their matching candidates.


Roles of a Recruitment Agency

The primary role of recruitment agencies is to help employers fill their vacancies by helping candidates move forward with interviews on their dream jobs.

The recruitment agency is responsible for posting adverts on various job boards if they do not find many candidates for a vacancy.

The recruitment agencies offer advice to candidates on improving their CVs to match employers’ needs and help them get to their dream job.

Agencies also help the candidates by suggesting job opportunities that are suitable for their skills

Recruitment agencies garner the needs of the company and the candidate. Matching them based on how well the candidate would be a right fit for the company is mutually beneficial.


How do Recruitment Agencies Work?

When a new opportunity opens up and the employer decides to recruit new candidates, they contact a recruitment agency to search for matching candidates.

The recruitment agencies search for the candidates based on the job description by the client and look for the ones most suitable for the job.

If there are no such candidates for the given job description, the recruitment agencies place adverts on various channels to find the right person for the job.

On the other hand, a candidate will approach a recruitment agency and upload their CV in the database to get interviews with the right company.

The recruitment agency promises a replacement job for the candidates if they are not happy with their current positions. This replacement can be done free of cost for the first few months of the candidate taking up the new job.

They usually take around 15% to 30% of the first annual income of the candidate’s salary as their compensation.

Employers usually pay the recruitment agency for every new hire that comes through them. The other option is to deliver a recurring fee for their services.


Reasons to Use a Recruitment Agency

  • The longer the recruitment process takes, the more money and time the organisation loses. A recruitment agent can speed up the process, and the organisation can focus on other aspects of their business.
  • By direct hiring, finding qualified candidates is a difficult task. However, a recruitment agency would go through the database and present the most qualified candidates to the recruiters.
  • Recruitment agencies usually get access to the databases of candidates at a discounted cost and can scout thousands of candidates and filter them to a grander scale.
  • Agencies are always on the lookout for the job market and new opportunities. It gives them insights and the hiring trends of the industry. It helps the organisation adapt to the present market trends.
  • The organisation invests time and money in finding suitable candidates to fill their vacancies. It is essential to look out for the cultural fit of the candidate. Recruitment agencies have a thorough knowledge of the candidate and can find the right candidate to fit in well with their culture.
  • Along with finding candidates for permanent positions, recruitment agencies also help recruiters find suitable candidates for seasonal and temporary hires.
  • Going through multiple interviews without positive results can be discouraging for a candidate. The agency helps the candidate improve their interviewing skills and CV to suit the job market and start their careers.
  • Recruitment agencies usually get paid by the candidate only after they are hired. This helps the candidate focus on getting hired without worrying about the fee.
  • The network of a Recruitment agency goes through various levels. It gives the candidate access to a wide range of job opportunities and provides them with the best choices based on their skillset.


Frequently Asked Questions


When should I not use a recruitment agency?

If you have your recruitment requirements and know where to find proper candidates for your open positions, going through a recruitment agency is not required.


When should I use a recruitment agency?

If you have no idea where to find candidates for your vacancies or if you find that searching for candidates is a time-consuming process, you should seek out the services of a recruitment agency.


Will my data be safe with a recruitment agency?

Recruitment agencies are legally obliged to safeguard your data. Any misuse of a candidate’s data would bring down severe legal consequences. In extreme cases, the agency could lose its license.



For a candidate, finding the right organisation with the need for a new recruit that matches their skills is a difficult task.

At such times, a recruitment agency could reduce the burden of the candidate by making use of their established connections.

When a recruitment process gets difficult it is better to get help from a recruitment agency.



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