The Full Breakdown: Understanding Agency Recruiters

Navigating the job market can feel like a maze. Partnering with a recruiting firm can simplify your journey, but the agency recruiting landscape might be overwhelming if it’s a new avenue you’re considering. The first decade of my career was spent in the agency recruiting world - so below I break down the ins and outs to hopefully help you understand the process and types of opportunities out there.

If you already know the basics and you’re looking for tips to partner with a recruiter successfully, check out this post.

What exactly is an agency recruiter or headhunter?

Companies often turn to agency recruiting firms when their hiring needs go beyond what their internal HR teams can handle. Whether it's due to a high volume of openings, limited internal resources, or the need for a confidential search (where they might be replacing someone), agency recruiters step in to fill the gaps.   Many companies find recruiting firms that they love, and stick with them for years, essentially seeing them as extensions of their HR & recruitment efforts.  

Generally, there are three types of job opportunities that a recruiting firm could offer. Some firms offer all of them, strictly contract, or strictly permanent. It’s your job to ask the right questions to ensure you know what you are being considered for!

Here are the three types of opportunities:

Contract/Temporary Positions:

Contract work is fantastic to consider if you are unemployed and readily available to jump into a new job.

If you were to accept a contract position, it is typically paid hourly and you become a W2 employee of the agency that placed you.  That means your paychecks come from the agency, but on a daily basis you are reporting to and working for the client company.  

The duration of a contract position varies, but an estimate is typically provided at the start of the process when you are deciding if it’s a position you want to be considered for.  Generally 3-6 months is standard, but some contracts might be short lived for a few weeks or a longer term engagement for 12-18 months. 

In my experience, the exact duration was always difficult to pinpoint, and the majority of contracts ended up being longer than anticipated. Even a leave of absence coverage can be tough to pinpoint exactly, but hopefully an estimate is provided.

If a company has an immediate temporary need due to a busy time or overworked department, that need likely isn’t going to just disappear.    Maybe the department doesn’t have the permanent headcount approved yet – but once it is approved, why wouldn’t they hire the person who’s already a great fit for their team and knows the ropes? Food for thought and a reason I encourage contract opportunities to be viewed with an open mind!

Contract to Hire/Temporary to Permanent:

Contact to hire is a process where a company brings on a contractor on a temporary basis (see above) with the intention of hiring them as a permanent employee down the line.  This avenue typically allows for a “probationary” period, for both sides!  As a candidate, it’s your job to win the permanent position, but also your opportunity to test out the company to ensure it’s a good fit for you long term. 

The timing of contract to hire opportunities, and when they transition to permanent, is the tricky part.  During my agency days, I never had a client with “set” 90 day timeline- that is, where once a contract hit 90 days, the decision to hire or part ways was immediate.  Typically, that timeline was more fluid, and the transition occurred when both parties were confident it’s a good fit.  Sometimes within a few weeks, sometimes within 6 months.   There are a lot of factors that contribute to the timeline- the internal budget being a key one.

I spoke with many candidates that were told by other agencies that a contract to hire position would transition to permanent in 90 days, so perhaps that type of engagement does exist. But in my experience, I think it’s more so a ploy to entice candidates to take a contract job.   The only person who can *promise* you the exact duration of a contract to hire position, is likely the hiring manager or internal company HR.

Direct Hire

Direct hire is when the recruiting firm acts as the intermediary between yourself and the hiring company during the introductory portion of your candidacy.  This can look different by agency – but in most cases, the recruiter is your main point of contact from initial application, through the interview process and at the offer stage. 

It’s common for internal HR of a hiring company to take over conversations at the offer stage, specifically when benefits are being discussed.  Your recruiter can be an essential confidant in navigating any tough conversations, and sometimes even handle them for you. So however the process is being handled, I highly recommend leaning on your recruiter for support or guidance during those final stages. 

When you receive an offer, you’ll likely become a W2 employee of the company directly from the start.  

Interviewing through Agency Recruiters:

Interview preparation is one of the best parts of partnering with an agency recruiter. They know their client, they know what they are looking for, and they might even have feedback from prior interviews that they can share. If your agency recruiter has intel, trust it!

The interview scheduling could go one of two ways.

1- The agency recruiter handles all of the scheduling back & fourth and handles interview confirmation details.

2- The internal HR or Recruiter with the hiring company handles the scheduling, hopefully looping in the agency recruiter on the process.

For direct hire roles, it’s common to have a few rounds over the course of a few weeks. I wish all companies would cap at 3 rounds, but we know that’s not the case.

Since contract jobs are typically open for immediate hiring needs, they can move very quickly in some cases. You could have an agency recruiter bring a job to you on a Monday, interview Tuesday, and have an offer to start the following day!

Some companies might even ask to skip the interview process, known as a “hire from a resume.” This typically shows that the hiring company has developed a great trusting partnership with a recruiting firm, and understand that the candidates they are presenting are being properly vetted. ‘Hire from a resume’ is most commonly utilized for temporary positions where it’s a straight forward project and a company needs immediate help.

It never sat well with me when a candidate I was partnering with told me they were offered a contract to hire job and didn’t have to interview. In my experience, contract to hire interview processes are typically more similar to a permanent job interview process rather than a contract position.

What about benefits?

The full benefits package of a company is typically only offered if/when a candidate is hired on a full time basis. If hired on a contract basis through an agency, your exact benefits and medical insurance coverage will depend on that agency’s specific offerings. Most will offer some option for medical insurance on a temporary basis, but it’s common for there to be a 30- 90 day grace period. Ask your recruiter directly what the options are.

For most of the temporary placements I have made in my career, it made more sense to stay with existing insurance coverage, since contract jobs in nature are temporary, and switching coverage can be tedious.
On a contract basis, you are paid for the hours that you work. When it comes to paid time off, sick time, or holiday pay, those will unfortunately not be paid in the majority of situations.

What about giving notice?

No matter how you are hired, you always want to give as much notice as possible to avoid burning bridges. However, a contract position allows for a bit more flexibility outside the standard 2-week notice. A 1-week notice is generally sufficient for a temporary position.

As a consultant, you are an employee at will, so the agency can technically terminate your employment without notice (this a key reason I always suggest continuing your job search when on a contract job, as there is no duration guarantee).

What’s the difference between a recruiter and a headhunter?

There really isn’t one! It’s more so a personal word choice. Technically a headhunter would probably be considered someone who only handled direct hire opportunities, as those searches are typically more of a “hunt” with heavy research and a longer process.

During my agency days, where I worked on both contract and direct hire opportunities, I typically referred to myself as a Recruiter. Headhunter felt more aggressive than I aimed to be, but that’s just personal choice!

How is an agency recruiter different from an internal recruiter at a company?

Whereas internal Corporate Recruiters are direct employees of an organization, agency recruiters are outside resources hired by an organization to assist with a specific hiring need. Agency recruiters typically partner closely with internal HR/Recruitment teams to find the best match for a company’s needs.

Internal HR/Recruiters with a company are usually on a salary, with bonuses or incentives. Recruiters with an agency are paid a base salary from their firm, but (in most cases) make the bulk of their income from commission payments through their placement fees.

There’s a misconception about agency recruiters that they just want to get paid and move on. But most companies have contracts in place, where they require a fee to be paid back if a placement falls through within a set period of time. This could be caused by an individual quitting, poor performance, mutual departure, or various other reasons. So although recruiters benefit from you accepting a job, they really only reap the benefits if it’s a good long term fit!

If you’re looking for additional intel & tips to successfully partnering with an agency recruiter - check out this post here.