What Is a Recruiting Agency? (A 2025 Guide)

Finding the right people is hard these days. Therefore, business owners are turning to the internet for answers.

One common question is, “What is a recruiting agency?” 

If you’re wondering the same thing, you’re definitely not alone, and it’s normal to feel a bit lost about what you actually need. 

You might think a recruiting agency can help you fill open positions really quickly.

However, before you make a conclusion, it’s important to know what a recruiting agency is, how it compares to other options, and why an HR business partner like TROIS Collective might be a better fit for your business in the long run.

Why Businesses Turn to Recruiting Agencies

Recruiting agencies can help companies quickly solve hiring problems. 

When internal HR teams are overwhelmed, agencies can step in to avoid delays that might disrupt business. 

However, there are different scenarios where an agency is needed: 

• When companies need to hire quickly (during product launches or holiday seasons), recruiting agencies can help fill positions without adding pressure to the internal team.
• Companies entering new markets may not know how to find local talent, so recruiting agencies help out. 
• For specialized roles, like AI engineers or executives, agencies can acquire talent who may not be actively job hunting.
• Recruiting agencies are also useful for specific hiring projects or short-term staffing needs. 

However, for long-term hires that fit the company culture or help with workforce planning, a broader HR business partner may be a better choice.

So, What Is a Recruiting Agency?

A recruiting agency, or staffing agency, helps businesses find people for job openings as an outsourcing ally. 

They're pretty good at sourcing, screening, and shortlisting candidates for companies. 

Some of the areas they focus on include temporary or contract staffing, full-time placements, and specific fields like IT, finance, or customer service. 

These agencies handle most of the hiring process, like posting job ads, going through resumes, and conducting initial interviews. 

Once they find a good fit and a hire is made, they usually step back.

Recruiting agencies offer some benefits that companies often lack, such as quick access to a wide range of candidates and efficiency in high-volume or urgent hiring situations, and they typically get paid only when they successfully help make a hire. 

However, they might not always be fully compatible with your company's culture or long-term strategy. 

They also don’t get involved in workers' compensation, payroll, internal communication, and other areas. 

Pros 

Recruiting agencies are pretty great for businesses for a bunch of reasons:

• They usually have a stash of candidates who are ready to jump in, which makes hiring a lot quicker.  

• If you’re looking for someone with specific skills, especially for tough-to-fill jobs, they can really help out.

• Many agencies get the industry trends, know the salary ranges, and understand what candidates are looking for.

• By letting them handle sourcing, screening, and those first-round interviews, your HR team (juniors and seniors) can focus on the bigger picture.

• They’re also great for short-term gigs or filling in when someone’s on leave, without the hassle of hiring someone full-time.

• If you need to find someone to replace an employee who has not yet been terminated, they’ve got your back too.

Cons

We can have an article about "what is a recruitment agency" if we don’t point out the disadvantages:

• Agencies charge fees, usually a percentage of the candidate’s salary, which can be high, especially for senior positions. 
• If the agency does not thoroughly check candidates, they might focus more on filling the role quickly rather than finding the right match.
• External recruiters may not fully grasp your company's culture or how your team works together. 
• Since an agency represents your hiring process, they might not effectively communicate your employer brand to potential candidates. 

• Not all agencies adjust their methods to fit your specific needs, especially in situations where you need to hire many people or have a limited budget.

When you work with an HR Business Partner like TROIS Collective, you are not just hiring new employees. You are creating a long-term plan to attract, keep, and support your team.

How a Recruitment Agency Works?

A recruitment agency helps businesses make hiring easier by finding and screening qualified candidates.

There are some main steps involved when you start working with them:

1. Identify the roles you need to fill, the skills required, and whether you want full-time or freelance workers. Then, create job descriptions to help the agency.

2. Discuss and agree on contract and payment terms, such as a retainer or a percentage of the salary. Some agencies provide a guarantee period for replacements if needed.

3. The agency shares selected candidates, which saves your team time and resources.

4. Your team interviews the final candidates to assess a good cultural fit and makes the final hiring decision.

Why TROIS Is Not a Recruiting Agency?

At TROIS Collective, we don’t just find candidates for you. 

We are your Fractional partner, not a typical recruiter. 

Our services include:

• Talent acquisition (yes, we help you hire)
• Employee onboarding and training
• HR audits and compliance checks
• Performance management processes
• Payroll and benefits setup
• Mental health and wellbeing strategies
• Employee retention and engagement planning

We don’t disappear once a role is filled. 

We’re focused on making sure your new team members succeed, your workplace culture flourishes, and your business grows with the right people in the right spots.

In Summary

So, what is a recruiting agency? It’s a service designed to help you hire fast, but it may not help you grow well.

They can get expensive and might leave your team with less say in all parts of staffing process.

At TROIS Collective, we offer more than just recruitment. 

If you're tired of quick fixes and want a partner for the whole journey, contact us today.