What is an employment agency or temp agency?

An employment or temporary employment agency (temp agency) is a job recruitment business that matches workers with jobs. They’re often called “recruitment firms” or “staffing agencies.” 

Staffing agencies offer positions across all sectors, and job applicants are considered based on the client's job needs. The agency’s primary goal is to find suitable candidates for their clients, meaning they work for the client, not the candidate. Typically, recruitment firms advertise jobs that are harder to fill by the businesses directly. This includes roles that are too specialized or shorter-term contracts and temporary positions.

Recruitment areas include:

  • Entry-level positions - office jobs assistance, manual labour work, customer services or hospitality.
  • Industry-specific positions - STEM (science, technology, engineering, and mathematics careers), creative careers and the arts, academics, government and non-profit public sector.
  • Temp jobs - short-term placements for office work, customer service, food and beverage and hospitality.
  • Contract positions - maternity leave or short-term disability staff replacements.
  • Executive and management positions.

Employment agencies are private businesses that make money by working with companies that are hiring for specific positions. As a job seeker, you should never pay direct money to these agencies to place you in a role. Employment agencies charge the company they’re hiring for directly or take a percentage off your pay once you're hired. Whatever salary you negotiate during the interview is the salary you will get regardless of how they charge the client. 

In the case of a temp job or a contract, the agency is the hiring manager. You would report to the agency your hours worked and get paid by the agency, not the company you will work for.

Job Scams

Beware of job scams! There are scammers and criminals online pretending to be employment recruiters representing fake staffing agencies. Scammers will contact you over email, text messages, or social media platforms, offering you fake job opportunities and enticing you with remote work or jobs that pay significantly more than you’re used to seeing with similar jobs. 

One of the first signs to look for is if they ask you for money at any point during the recruitment process. Legitimate recruiters will never ask you for money at any point during or after the hiring process.

Read more on how to spot fake online jobs, and how to identify online scams and protect yourself

Negotiating your Pay 

Some temp agencies advertise job opportunities with a set wage they will pay the candidate. This happens with temporary and entry-level positions. The fee promised to you during the interview already considers the percentage the hiring company will get from the temp agency. 

For example, if an employment agency is advertising for an Administrative Assistance role at $20/hr, you will be paid that regardless of the percentage they agree to owe the client. This means that the hiring company might have agreed to pay $26/hr to the staffing agency, and the agency keeps the $6 difference. Your pay will not be affected because the set rate is still $20 for you. 

With other types of roles that are more specialized or full-time permanent roles that offer salaries, there can be more room for negotiation with the hiring company. In this case, you might see a salary range advertised on the job post or discuss it with the recruiter during the initial interview. Always ask the agency recruiter about the salary expectations to understand the client's salary limitations.

Employment Services 

“Employment services” is a general term used to describe programs offered by non-profit organizations that help you with job applications or to navigate different aspects of the job market. Unlike employment agencies, these programs help prepare you to find work but don’t necessarily offer you job opportunities. 

This includes assistance with:

Employment services are offered for free across Ontario at community centres, settlement agencies and some schools. These services can help you better understand what Canadian employers want when hiring. You are free to work with an employment service while applying to a staffing agency. Find out more about why you should get help with employment services.

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Last updated: November 4, 2024 4001076