Hiring a Staffing Agency? Everything Employers Should Know Before They Sign
Hiring a staffing agency can save your business time, reduce hiring risks, and connect you with qualified candidates faster. However, not all recruitment agencies operate the same way. Before you commit to a staffing partner, it’s important to understand how recruitment fees work, what services are included, and what questions you should ask. This guide explains everything employers should know before hiring a staffing agency so you can make an informed decision.
1. Understand Which Staffing Service You Need
Not all staffing services are the same. Choosing the right service from the start will help you compare agencies, timelines, and pricing more effectively.
- Temporary Staffing – The staffing agency employs the worker and places them with your business. This is ideal for vacation coverage, seasonal demand, special projects, or temporary staffing shortages.
- Permanent Recruitment – The recruitment agency sources, screens, and presents qualified candidates for a position you hire directly.
- Executive Search – A more strategic recruitment process designed for leadership, executive, and highly specialized roles.
- Candidate Testing – Skills assessments, behavioural profiles, aptitude testing, or software evaluations that can strengthen your hiring decisions.
Understanding which service fits your hiring needs is the first step toward selecting the right staffing agency.
2. How Staffing Agency Fees Work
One of the first questions employers ask is, “How much does a staffing agency cost?”
The answer depends on the type of recruitment service you need.
For permanent recruitment, agencies typically charge a contingency fee based on a percentage of the successful candidate’s first-year salary. This commonly ranges from 15% to 25%, while executive searches may have different pricing structures.
Temporary staffing works differently. Rather than paying a placement fee, businesses pay an hourly bill rate that includes the employee’s wages along with employer costs such as:
- Vacation pay
- CPP and EI contributions
- WCB coverage
- Payroll administration
- Statutory holiday pay
- Recruitment and onboarding costs
When comparing staffing agencies, always ask:
- Is the search contingency-based or retained?
- What services are included in the fee?
- Are there any additional costs?
3. Why a Recruitment Guarantee Matters
A recruitment guarantee is one of the most valuable protections you receive when hiring through a staffing agency.
Before choosing a recruitment partner, ask exactly what happens if your new hire doesn’t work out. Some agencies offer replacement guarantees, while others provide limited coverage or none at all.
At Excel Personnel, our permanent placements are backed by our Re-Recruit Guarantee. If a placement is not successful during the guarantee period, we’ll re-recruit for the position at no additional recruitment fee.
Before signing an agreement, make sure you understand:
- How long the guarantee lasts
- What circumstances are covered
- Whether the agency offers a replacement, credit, or refund
Having these details in writing helps you compare agencies with confidence.
4. How Long Does Hiring Through a Staffing Agency Take?
Every hiring process is different, but realistic timelines generally look like this:
- Temporary and administrative roles: often within a few days
- Permanent positions: typically 2 to 6 weeks
- Executive searches: 6 to 12 weeks or longer
If an agency promises to fill a specialized leadership position in just a few days, ask how they plan to do it. A quality recruitment process takes time to source, screen, interview, and evaluate the right candidates.
5. What Services Should Be Included?
A staffing agency should do much more than forward resumes.
Ask what their recruitment process actually includes. A reputable agency should provide services such as:
- Candidate sourcing
- Resume screening
- Initial interviews
- Reference checks
- Verification of work eligibility
- Skills or behavioural assessments when appropriate
At Excel Personnel, we tailor our screening process to each client’s needs and can incorporate Candidate Testing to help employers make informed hiring decisions.
6. Who Is the Employer of Record?
This question is especially important when hiring temporary staff.
For temporary placements, the staffing agency is typically the legal employer. This means the agency is responsible for:
- Payroll processing
- CPP and EI remittances
- Vacation pay
- WCB coverage
- Employment standards compliance
Understanding who the employer of record is helps clarify responsibilities and reduces your administrative workload.
7. Staffing Agency Red Flags
Not every recruitment agency offers the same level of service.
Watch for warning signs such as:
- No placement guarantee
- Unclear or changing fee structures
- Pressure to sign exclusivity agreements immediately
- Little explanation of the screening process
- No client testimonials or references
A reputable staffing agency should be transparent about its process, pricing, and expectations from the beginning.
Questions to Ask Before Hiring a Staffing Agency
Bring these questions to your first meeting:
- What is your fee structure, and what does it include?
- What type of placement guarantee do you offer?
- What does your screening and interview process involve?
- Have you successfully recruited for businesses in my industry?
- Who is the employer of record for temporary employees?
- Can you provide client references or testimonials?
The answers will quickly help you determine whether the agency is the right fit for your organization.
Frequently Asked Questions About Hiring a Staffing Agency
1) How much does it cost to hire a staffing agency?
Permanent recruitment fees are usually based on a percentage of the employee’s first-year salary. Temporary staffing is billed at an hourly rate that includes wages, statutory costs, payroll administration, and employer contributions.
2) Do staffing agencies offer guarantees?
Many recruitment agencies offer placement guarantees for permanent hires. Always ask how long the guarantee lasts, what it covers, and whether the agency provides a replacement search, refund, or credit.
3) Are temporary employees employed by the staffing agency?
Yes. In most temporary staffing arrangements, the staffing agency is the employer of record and manages payroll, statutory deductions, WCB coverage, and employment standards compliance.
4) How long does it take a staffing agency to fill a position?
Temporary roles are often filled within a few days, while permanent recruitment typically takes between two and six weeks. Executive searches generally require six to twelve weeks or longer.
Why Businesses Choose Excel Personnel
Choosing the right staffing agency isn’t just about filling an open position. It’s about partnering with a recruitment team that understands the local market, your business, thoroughly screens candidates, and stands behind every placement.
For more than 33 years, Excel Personnel has helped employers across Kamloops, Prince George, Kelowna, and throughout British Columbia recruit qualified temporary employees, permanent staff, and executive leaders.
Whether you need short-term staffing support or a long-term recruitment partner, we’re happy to explain our process, timelines, and Re-Recruit Guarantee before you make a hiring decision.
Explore our Staffing & Recruitment Services or Contact Excel Personnel to discuss your hiring needs.
