How Do Recruitment Agencies Work?

Hiring employees for your company is a time-consuming process. With an average time of 39 days to hire a new employee, many businesses find it challenging to go through the lengthy hiring process and select the best applicants for the job.

Recruiting technical or IT-related personnel is considerably more difficult. Firms may struggle to recruit suitable people for the position, especially if recruiters lack the extensive technical experience that is often required. This is why most firms leave it to the recruitment agencies to hunt for the right candidate.

What is a Recruitment Agency?

A recruiting agency’s primary goal is to find the best candidate for a job opening. Recruitment firms serve as a middleman for organizations looking for qualified applicants and people looking for competitive employment. The best IT recruitment agencies manage a database of individuals, their CVs, professional experience, and talents and match them to the criteria of various organizations’ job descriptions.

How do Recruitment Agencies Work?

To match candidates to jobs, most recruitment agencies follow the processes mentioned below:

Mutual Agreement

When a firm creates a job vacancy and plans to hire employees through recruitment agencies, it needs to sign a mutual contract. You will decide the terms of payment and other conditions for the hiring process. The terms and conditions vary for different agencies. Some agencies require you to pay 25-50% of the employee’s salary amount; others demand a commission equal to the employee’s salary. Similarly, companies get a guarantee period wherein if they feel the employee is not suitable for the job; the agency will continue to look for the right candidate in the same payment.

Creating Job Profiles

Once both parties sign a mutual contract, the recruitment agency will create a job profile according to the company’s requirements and whether or not you need to hire an employee urgently. You provide the agency with a comprehensive job description, required skills, and expected salary.


The recruitment agency searches through its database of candidates for potential matches. The job hunter filters the possible candidates according to qualification, experience, and skill requirements. Agencies also mobilize influencers to reach the best candidates within their network and social circles. The next step is to shortlist the best candidates and schedule an interview.


Agencies conduct interviews in two phases. The purpose of the first interview is to narrow down the list of candidates. Agencies conduct the first interview themselves without involving the company’s recruiting departments. The second and final interview includes both company personnel and the recruitment agency representatives.

Negotiations and Final Recruitment

When a company selects the final candidate for the job vacancy, the recruitment agency negotiates salary, terms and conditions, and other tangible and non-tangible benefits the company offers. After negotiations, the recruitment agency presents a final job offer to the candidate, and once it is accepted, the agency assists the company with employee onboarding.

Hiring the Best Recruitment Agency is Crucial

A successful hiring process requires companies to find competent recruitment agencies. If your business is looking for top IT recruitment agencies for urgent hiring, we recommend you to use Xpeer. It is one of the best B2B platforms for companies to search for service providers worldwide. With their AI-enhanced matching service, Xpeer will provide a detailed performance evaluation chart with B2B reviews and ratings to help you choose the best among all listed recruitment agencies.

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Written by David Luke

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