How Recruitment Agencies Work?

Let us make it very simple for you to understand what a recruitment company does? - A recruitment agency is a mediator between an organization who wants to hire employees and job seekers who are actively looking out for job vacancies. The main motive of a recruitment agent is to source the best candidates for the mandate given by their clients.


As we all know, recruiting employees takes a lot of time, effort and money of a company. Some companies manage to hire people on their own while many delegates this task to recruitment companies. Employers generally don’t have enough time to invest in finding right people for their organization, as it is a real struggle. Recruitment firms do everything that needs to get relevant candidates for the job openings. With this, you can spend more time interviewing applicants to ensure the quality of the candidates.


Now, let’s discuss how does recruitment agencies work to fulfil their client's needs by sourcing the right candidates. It is a short yet complicated, so I have simplified the process of how recruitment companies work. 


Getting Clients

Recruitment consultants try every possible way to gain new clients. The most common way is cold calling, it is practised by every recruitment company to gain new clients. Many firms use social media such as LinkedIn and Twitter to create a network with employers. Email and content marketing is in trend now, as this is the most effective way to portray what your company does. This is the best way to communicate with clients as well as candidates.


Hunt For Candidates

Hunting for new candidates on various platforms is the task which is daily performed by every recruitment agency. Recruiters use various sourcing avenues to find best candidates for job openings. Below, I have mentioned the most reliable ways for getting candidates.


Social Media

For recruiters, social media sites such as Facebook, Linkedin, and Twitter are the best hunting grounds. As these sites have billions of users, finding candidates here is not a tough task.


Job Boards

The job board is one most used platform for job search, so posting job vacancies on a job board is one of the best ways to get candidates. Job board and career site databases contain numerous resumes across various industries, experience levels, and locations. Recruiters trying to find the perfect candidate for a job role doesn’t get disappointed here.


Job Fairs

Job fairs are nothing but an event where employers set up their company booth in order to attract the candidates who are actively searching for jobs. This is the best way to make connections, for both recruiters and candidates.


Personal Referrals

Recruitment consultants often keeping in touch with their friends, ex-colleagues, relatives and ex-bosses. These are the best resource to get referrals which can ultimately become your candidate. Recruiters always ask their candidates to recommend their friends who are also searching for jobs. This is how they build a huge database of candidates.



Most recruiters run keyword searches to find relevant candidates in their applicant tracking system (ATS). In ATS the resumes which are submitted online is stored. When there is an opening for a specific job role, a recruiter will just type the keywords and get the list of the relevant candidates.


Scheduling Interviews

Recruitment consultants call the candidates to verify whether they are currently looking out for a job or not. The recruiter will explain everything about the job opening to the interested candidates. Further, they schedule interview according to the candidate’s and client’s convenience.


Making Money

Recruitment agencies charge money for their services. There are two main ways to charge the fee, some charge certain percentage of annual CTC of the selected candidates. The other way is charging employers on an hourly/daily basis, this happens only in case temporary staffing. You should know that the temporary workers come under the responsibility of the recruitment agency. This means that it is the agency that pays the candidates. Their salary is recovered from their employers and then recruitment agencies command a fee that covers all costs. This is generally daily or hourly based.


So this is how recruitment companies operate to source the relevant candidates. Feel free to write your thoughts in the comment box.