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How Do Recruitment Agencies Work: Step-by-Step Explained


All across the world, businesses are struggling to adjust to the COVID-19 epidemic. A recruitment agency can help your business get its footing, whether it’s resizing, reshuffling, or simply trying to stay afloat. The important question is whether they’re worth it.

In early 2020, 54% of businesses reported a lack of unqualified candidates, and the number of vacant jobs worldwide is expected to exceed 85 million by 2030.

Fortunately, recruiting agencies can step in and considerably simplify the hiring process for organisations of all sizes.

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Internal hiring is costly and time-consuming, and there is no guarantee that your new employee will succeed. Hiring services are a cost-effective answer to this challenge for many organisations. Recruiting agencies can assist you in reducing your employee’s workload and speed up the recruiting process. Continue reading to form your own opinion and learn about the services that a recruitment agency may provide.

Recruitment Agency Explained

At its most basic, a recruitment agency is an organisation that connects potential employees with companies. A recruitment consultant’s primary goal is to assist firms in identifying and retaining top talent on the market, typically specialising in industry-specific staffing.

Hiring has traditionally been the responsibility of the employer. However, when employers are in charge of hiring, it is costly and time-consuming. Recruitment agencies link employers and employees, locate top talent, screen candidates, and present the best candidates to customers.

Although there are many similarities between the employment and recruiting agencies, they are not the same. Recruitment agencies identify people for permanent positions, such as upper-management and executive positions.

What Is the Organizational Structure of a Recruitment Agency? Who Is Responsible for What?

While services may differ significantly from one agency to the next, most recruiting agencies follow a similar procedure.

  • Agreement

When your company has decided to work with a particular recruitment agency, you must first sign an agreement.

Of course, payment arrangements must be agreed upon—typically, a retained fee or contingency fee structure. However, you’ll also need to agree on your expectations for the work.


Some recruiters, for example, provide a guarantee period. This almost guarantees that you will get a fantastic hire. However, if your most recent job does not work out within the time limit indicated, the agency will go back to the hiring board to find your next hire.

  • Profiling

Following that, your recruitment agency will meet with you to discuss your hiring requirements. Perhaps your company needs many positions to be filled. Perhaps you have an opening for a critical executive role.


The agency’s goal is to gather as much information as possible to locate and attract the best candidates for the job. Typically, you’ll supply your agency with a detailed job description, a list of requirements, a list of important talents and traits, and any other relevant aspects.

  • Sourcing

The agency will next examine its own database and networks for qualified applicants and organise influencers to reach out to candidates within their own unique networks and circles. These recruiters are quick on their feet, scanning resumes in an average of 6 seconds.


The agency will assess potential applicants and organise interviews after generating a list of them. Only about 2% of applicants are selected for interviews.

  • Interviewing

The interview process is divided into two sections. First, they will be scheduled for candidate interviews by the agency. This will allow the agency to understand the prospects better and find out whether or not they are a suitable fit for your company (as well as good reflections of the agency).

The agency will inform candidates of your company’s requirements, culture, and long-term vision during this stage.


Following the use of these interviews to narrow the pool of prospects even further, your organisation will be briefed about each prospective candidate, and the agency will assist you in organising final interviews. According to 51% of recruiters, three interviews are required before making an offer to a candidate.

  • Negotiation and Offer Extension

When you find a candidate, you would like to hire, the recruiting firm can assist you in negotiating an offer and remuneration with the candidate. The recruiting agency will save you precious time and ensure the prospect has a primary point of contact throughout their journey by removing offer negotiations off your plate.

Negotiation & Offer Extension
  • Onboarding

Following the acceptance of an offer, the agency may assist your organisation with employee onboarding—an area in which just 12% of employees are satisfied with their employers’ efforts.


Aside from assisting both parties in completing the relevant papers for employment, the agency will continue to ensure that your new hire is at ease and pleased to join your team!

What Are the Advantages of Using a Recruitment Agency for Companies?

There are numerous reasons why your organization should use a recruiting agency for its hiring operations, but three, in particular, stand out.

  • Gaining access to better talent

Recruitment firms have more access to talent networks.

Unlike most companies, who only have access to LinkedIn, recruiting agencies use a variety of sources, including their own platforms in many cases, to find the best candidates.

They can also use their industry connections to gain references, which are five times more effective than other hiring methods.

Recruitment firms are also not hesitant to go head-to-head for the finest prospects. It is not rare for them to effectively entice top passive talent from other organizations. Unfortunately, many of these prospects are not found in the typical job search, as only 30% of the worldwide workforce is actively looking for work.

  • Final candidates and hiring who are more qualified

Unfortunately, if you pursue the wrong individual through the hiring process, the excellent candidate you surpassed earlier in the process may already be working with your competition.

Worse, you may go so far as to hire a dishonest candidate without realising it. For example, in a CareerBuilder poll, employers stated that 33% of failed hiring resulted from candidates lying about their qualifications.

Recruiting firms hire experts. They not only have more time to examine candidates thoroughly, but they also have greater experience identifying red signs.

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As a result, when a recruitment firm submits its top applicants, you can be confident that you’ll receive appropriately vetted candidates that fulfill the criteria you specify.

  • Save both time and money

You risk wasting time and money on numerous fronts when you handle hiring internally.

The time spent searching for and evaluating applicants is the first consideration. On average, 250 resumes are submitted for a single vacancy. As a business owner or a chief executive, you’re probably juggling more pressing day-to-day obligations, and your time would be better spent elsewhere.

Even if you delegate hiring responsibilities to another employee, you are now paying that individual high bucks to find your next job.

When you make a wrong hire, you waste both time and money. Even if you ignore the decrease of production, there’s the time spent trying to retrain or rehabilitate a wrong recruit before finally parting ways.

Not to mention the cost of turnover. According to research, losing a senior or executive level employee costs around 213% of that person’s pay.

When you partner with a recruitment firm, these concerns disappear. The agency’s responsibility is to identify your next great hire—that is their area of expertise and why you rely on them to discover your next top employee.

How Can Entire OnHire Help Recruitment Agencies?

Now that you have a better understanding of the many benefits a recruitment agency can bring to your business, you can start developing a strategy for implementing it. The best approach is to begin by identifying your own unique needs and the company’s challenges, then update your staffing strategies to align with your business objectives. With a robust, user-friendly dashboard, Entire OnHire has streamlined the entire recruitment process and placed the most critical facts and data right at your fingertips.

We offer workforce management software to labour-hire organisations to reduce manual inputs and repetitive data entry by up to 75%! This frees up your personnel to focus on higher-value duties that will help your company and bottom-line flourish. Follow-ups, scheduled interviews, reference statuses, and pending compliances can all easily be tracked. With Entire OnHire, you’ll never have to worry about compliance again. It’s all automated and taken care of for you.

Configure your recruitment process to focus on what’s important to you by customizing job boards to your individual needs. This automated and streamlined technique benefits your employees while also making the onboarding process easier and more enjoyable for prospects. The user-friendly, mobile-friendly portal allows new applicants to log in and submit employment information and financial information, answer questions, sign online policies, and upload relevant documents. Instead of time-consuming data input, your recruiters can proactively verify this information and comprehensively analyse the candidate.

Contact us immediately to set up a demo and see how effective recruitment software can grow your recruitment firm!

Book a free demo now

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