Recruitment and employment agencies and how they work

Sometimes we see comments and discussions on social medias from job seekers saying that “don’t use recruitment or employment agencies, because they will take (a part of) your salary or deduct some fees” and employees placed by these agencies will receive less salary.
This is absolutely not true (at least not in our case of DK Recruitment Services)

Therefore, we would like to take this opportunity and explain you how recruitment and employment agencies work. First of all, we need to make a difference between

• Recruitment agency
• Employment agency

Recruitment agencies are usually taking care of the selection and recruitment process.
Advertising, first contacts with candidates, interviewing, preparing CVs, collecting all necessary documents like diplomas, reference letters and other important documents related to the placement of candidates is done by the recruitment agency. They also can act as a support if job seekers/employees have some questions or concern before or during the employment.
The biggest difference between the recruitment and employment agency is that usually recruitment agencies do not employ their candidates, but their clients do.
Employment agencies have similar tasks but in most cases, they also act as the employer of the candidates and the candidates, future employees are placed on the project of their clients.

Why companies are using recruitment agencies a/o employment agencies?
There are a lot of benefits and here are some of them:

• Clients can focus on their main business, and they do not spend time with recruitment
• Clients don’t need to have a recruitment team, and this saves expenses
• The same applies in case of marketing, usually the recruitment or employment agency do the marketing to attract candidates
• Clients do not need to have a massive team of accountants, tax advisors and additional personnel to prepare salaries and the overall payroll. Usually, everything is done by the agency

And now, to answer the question how recruitment agencies and employment agencies profit?

In case of recruitment agencies, the clients save finances on the recruitment team, marketing expenses and a lot of time as recruitments are very time consuming. If the end clients do not need to spent time with recruitments, the clients and their teams can focus on their main business.
Recruitment agencies usually charge a service fee, this fee can be on a regular basis, or they can also charge a higher one-time fee. The salaries of employees are untouched, for the job seekers it does not make any difference if they are recruited by a recruitment agency or directly by the client.

Employment agencies, as described above also act as an employer the scheme is a bit different. They usually charge the end client the full amount of the total gross salary of the employees and their margin for the services as we described above.

In all these cases, candidates and job seekers do not need to worry that salaries would be lowered just because candidates used an agency. They are not taking from the employees’ salaries but they charge their clients for services.
Please note there are a few suspicious companies who might work a different way, all above described ways are common practices of serious agencies and we are one of them. 😊

We hope that you liked this short explanation and if you are looking for a new job please feel free to check our open vacancies on the following link: Our current offers!

In our case, you do not need to have any concerns, we are on the market for over 15 years and with more than 50 active clients with over 500 employees each. 😊

If you have any questions or would like to ask some additional question feel free to contact us. We are happy to answer to all your relevant questions.

Greetings to you all,

DK Recruitment Services