Staffing vs Recruiting: What Are the Differences?
There are several choices for hiring when you are seeking new staff. In addition to hiring directly, you may also opt to work with recruitment firms or staffing agencies. To know which option best suits your needs, you first need to know what they mean.
Although the terms “recruiting” and “staffing” are frequently used synonymously, they have different meanings. Even many owners of staffing agencies aren’t aware of the differences between these two terms.
In this article, we will break down these popular hiring options and explain the differences between them. Read on to learn how staffing and recruitment agencies work. That will help you choose the best option for you.
What Is Staffing?
The process of providing a business with contract or temporary workers to address unforeseen demands or shifts in labor demand is known as staffing. That involves covering staff absences, working during certain seasons, and meeting project specifications.
Similar to employee leasing, staffing encompasses different methods to hire and retain staff members. Flexibility and speed are emphasized. Plus, staffing is considered a core function of Human Resources (HR).
It typically includes managing payroll and benefits, among other administrative facets of employment. Unlike recruiting, staffing is not just about finding candidates. It also entails other parts of the hiring process, including scheduling and employee engagement.
The 3 main phases involved in staffing include:
- Determining the qualifications when seeking applicants
- Calculating the number of workers required for the position, and
- Aggressively encouraging current employees to apply
How Do Staffing Agencies Work?
Using the network of active candidates or people actively looking for a job, staffing agencies find the most suitable employees for their clients’ businesses. In addition to reviewing skills, resumes, and background checks, these agencies use their unique processes to assess potential candidates.
Depending on the position, candidates may also be introduced to client companies. The staffing agencies find the right candidates by maintaining a pool of people with different experience levels and skill sets.
Aside from screening and recruiting, they handle the majority of the paperwork after the client company hires a candidate. Unlike recruiting services that are focused on finding and providing permanent employees, staffing agencies usually provide temporary employees to companies.
Those employees are typically available for short-term assignments and are hired for seasonal work, short-term projects, or events. However, companies can also use staffing services for permanent hires. Many staffing agencies help in finding long-term positions, too.
While most agencies cover a wide range of sectors and occupations, some only focus on a specific type of job or industry. Almost all of them add a premium to the hourly fee so that the client company pays it to employees. That’s why you should check various staffing options for your employment needs.
What Is Recruiting?
The active practice of finding and screening potential hires for available vacancies is known as recruiting. After that, the top applicant gets employed via a procedure overseen by employees.
The best candidates on the market are identified, recruited, engaged, and hired through external or internal recruiting agencies. Companies usually use them for long-term positions or permanent hires.
A strategic approach is often required when it comes to recruiting. It is necessary to understand specific job requirements as well as the workplace culture and company goals.
This extensive process demands a thorough evaluation of candidates, which includes multiple assessments, several background checks, and in-depth interviews. The goal is to make sure every candidate qualifies and aligns with the vision and values of the company.
Recruiting might be carried out through:
- Former or current employee referrals
- Job boards
- Recruitment programs, or
- Staffing agencies
How Recruiting Firms Work?
To identify and attract potential candidates, recruitment agencies use a variety of methods, including their own databases, social networks, job postings, and online contracts. Once recruiters find candidates, they interview, screen, and assess them. Thus, they want to make sure the candidates are really suitable for a certain position and company.
Recruiters typically operate on a retained or contingency basis. Only if a candidate gets hired in a successful way, they receive payment for recruiting services. That’s how they work.
Unlike agencies that use direct hiring and staffing services, recruiting firms focus on “passive candidates.” These are candidates who aren’t actively looking for work. Most of them already have a job.
Top-level personnel are constantly searching for methods to advance in their careers. Therefore, recruitment agencies usually maintain a sizable, well-kept pool of active and passive candidates.
What Are the Key Differences Between Recruitment Firms and Staffing Agencies?
Now that you know how recruitment firms and staffing agencies work, let’s break down the key differences between them.
From training and hiring to employee retention, staffing agencies handle the entire workforce management process. To make sure the workforce is constantly productive, they use long-term strategies.
Recruiters are seeking top-tier individuals. Recruiting is, therefore, more focused on selecting and sourcing the best talent for a specific role.
| Recruitment Firms | Staffing Agencies |
| More thorough process, but slower turnaround | Quick turnaround |
| Permanent or long-term positions | Contract, temporary, or short-term positions |
| In-depth candidate assessment | Less rigorous assessment |
| Limited to the recruitment process | Manage benefits, payroll, etc. |
| Specialized in specific industries or roles | Broad industry range |
| Strategic long-term client relationships | Short-term partnership for immediate needs |
| Senior-level, specialized niche roles | Temp-to-hire, project-based, seasonal work |
What Is the Difference Between a Recruiter And a Staffing Coordinator?
The difference between a recruiter and a staffing coordinator lies mainly in their roles within the hiring process and how much they’re involved in candidate sourcing versus logistics.
The primary role of the recruiter includes everything from actively finding to attracting and screening candidates for job openings. On the other hand, the primary role of the staffing coordinators is to support the hiring process through administrative and scheduling tasks. They are also supposed to ensure a smooth workflow for staffing needs.
Recruiter’s Key Responsibilities:
- Sourcing candidates via job boards, social media, referrals, etc.
- Reviewing resumes and conducting interviews
- Coordinating with hiring managers to understand job requirements
- Extending offers and negotiating terms
- Often specialized by function (e.g., tech recruiter, healthcare recruiter)
Staffing Coordinator’s Key Responsibilities:
- Scheduling interviews between candidates and hiring teams
- Managing applicant tracking systems (ATS)
- Handling documentation and background checks
- Communicating with candidates about interview logistics
- May coordinate shift schedules or temporary staffing assignments
Staffing Agency vs Recruiter Firm: Which Hiring Option is Best?
Generally speaking, the best option is dependent on your business needs. A staffing agency is a better option if you’re looking to fill several positions fast or hire candidates for a short-term project.
If you want to attract top personnel from rival companies or other relevant industries, then you should opt for recruiting. This is especially true if your budget is large.
Whether you decide to choose an agency to help with recruiting or staffing, be sure to hire someone with a strong track record, a reputable network of prospective hires, and high retention rates.
Prioritize the caliber of the potential employees in any case. Ultimately, you want to fill your open positions with the best candidates.