Definition
Staffing agency — A staffing agency finds and places workers with client companies, most commonly for temporary, seasonal, contract, or contract-to-hire positions, though some agencies also handle direct, permanent placements. A key detail that distinguishes a staffing agency from most other recruiting arrangements is the employment relationship: for a temporary or contract placement, the worker is often technically employed by the staffing agency itself, which handles payroll and sometimes benefits, while doing the actual day-to-day work at the client company's site. The client pays the agency a bill rate, typically higher than what the worker is paid directly, with the difference covering the agency's margin, payroll administration, and the recruiting work itself. Staffing agencies tend to work at higher volume than a typical headhunter, filling many roles across multiple client companies rather than one deep executive search at a time, and they're commonly used for roles that need to be filled quickly, or where a company wants to evaluate someone on the job before committing to a permanent hire.
For a candidate, working through a staffing agency changes a few practical things: paychecks and benefits usually come from the agency rather than the company you're actually working at, and a contract-to-hire arrangement means the client hasn't committed to a permanent offer yet, even though the day-to-day work looks the same as any other employee.
Staffing agencies vary a lot by specialty; some focus on general office or light industrial roles at high volume, while others specialize in a specific field like healthcare or IT, closer to how a headhunter operates but at a larger scale.
Frequently asked questions
Who actually employs a worker placed by a staffing agency?
Often the staffing agency itself, at least for temporary or contract roles. The agency typically handles payroll while the worker does the actual job at the client company's site.
What's the difference between a staffing agency and a headhunter?
A staffing agency generally works at higher volume across many client companies, often for temporary or contract roles. A headhunter usually runs one deep search at a time for a senior or specialized permanent role.
Does contract-to-hire through a staffing agency guarantee a permanent job?
No. Contract-to-hire means the client is evaluating the arrangement before deciding on a permanent offer. It's common, but not a guarantee the role converts.
Related pages
Practice for the interview either way
Whether a role comes through a staffing agency or a direct application, a general AI interview on Intervieux works the same fundamentals.