Agencies work in a few common ways. Contingency recruiters are paid only when a candidate they introduced is hired, usually a percentage of first-year salary. Retained search involves an upfront fee for an exclusive, often senior, assignment. Temporary and contract agencies supply workers and charge a margin on hourly pay. Most agencies specialise by sector or job type and keep their own networks of candidates.
Agencies add reach and speed for hard-to-fill or urgent roles, but fees add up when they are used for volume hiring that could be handled in-house. Clear terms on fees, ownership of candidates and rebate periods help avoid disputes. Agencies screening on an employer's behalf should work to the same criteria and fairness standards, since the employer often remains responsible for how candidates are treated.