A Guide to How Staffing Agencies Operate

Staffing agencies strive to pair up the right job candidate with the correct position. Their expertise may help save time for both employees and employers. It would be helpful for you to understand how staffing agencies work to enhance your relationship with your clients.

Staffing agencies recruit employees for employers trying to fill positions and help candidates find a job match. The positions may be temporary, part-time, or full-time. This process allows those willing to begin working in a new industry to gain experience and try out positions before committing to them. Sometimes staffing agencies specialize in a particular industry.

Employers Contact the Agency

First, when employers are looking to hire new staff, they will contact a staffing agency specializing in their industry. The employer will then provide them with the job description, number of employees they are looking for, the pay rate, and the time period that will need to be worked. The agency will use this information to compose a formal job description and advertise it on job boards. Depending on the agency’s methods, the recruiters may use social media or other professional networks.

Candidates Apply

Job candidates can check out job openings on the agency’s website or other channels mentioned above. They might also have the opportunity to meet with a recruiter to discuss their qualifications. The recruiters review potential candidates’ skills and background to determine corresponding positions that employers are looking to fill. The candidates sign up with the agency, who will manage this recruitment and hiring process, and the candidates are given the feedback needed to improve their chances of success.


Once the agency determines what candidate fits a position best, they will undergo screening interviews. These screening types will vary based on what the position is for, and then the employers may participate in a formal interview process. Staffing agencies introduce the selected candidates to the employers, but the employers still have the final say on who they want to hire.

Contracts and Pay

The agencies handle most of the paperwork in terms of managing contracts and terminating when necessary, for instance. They also manage employment taxes, like social security, as well as payroll.

Using a staffing agency significantly helps employers save time and energy. For temporary positions, staffing agencies are actually the ones who pay the employees. When the employees become officially hired by the company where they performed strongly at a temporary job, the employer then takes over payment.

Do Staffing Agencies Charge Fees?

Staffing agencies charge a fee to employers to outsource their hiring process. If they didn’t collaborate with an agency, they would instead have to cover the hiring costs directly for job ads and internal recruiters.

It does not cost the potential candidates anything to use the services of a staffing agency. Sometimes there are deductions on their paycheck once hired, however, the amount given will coincide with what the employer would have paid directly. Staffing agencies charge fees for the amount of work the employee performs and may also charge an additional fee for filling the position. For temporary positions, it will be deducted regularly, but for permanent positions, it will be a one-time fee.

Temp-to-hire contracts give employers the option to hire the employee for a longer-term period. The agency and employer negotiate these contracts and pay a contract buy-out.

Deciding to Work With a Staffing Agency

Working with a staffing agency is often very helpful for both the employer and the employee. However, things don’t always work out as planned, which is why it is so important for your clients to secure staffing business insurance. To have a good experience with an agency, it is advised for job hunters to:

● Choose a specialized agency in the right field of interest

● Be professional from the start

● Be very clear on their professional needs

● Be honest about past employment

● Improve their skills, as oftentimes training and courses are available for free through the agency

● Stay open to other propositions the agency has in store, as temporary jobs could lead to an opportunity for permanent ones, and they are an excellent way to gain experience

About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.