To ensure maximum efficiency in the recruitment process, a company may choose to employ the services of a recruitment agency. This can either be on an ad-hoc basis or the firm might retain an agency to handle all its recruitment needs.

Using the services of a recruitment agency offers some significant advantages. For one thing, the agencies can screen candidates to make sure that the organisation only sees those who are suitably qualified and experienced.

Then, the agency is continually active that particular job market which gives it specialised information the organisation might lack. This is especially so for recruitment agencies that specialise; an agency that dealt only with Cobol programmers, for example, would have its finger on the pulse of this job market and be able to advise prospective employers on the overall environment as well as locate specific employees.

In the past, recruitment agencies had an office (or offices) in their main area of business. A prospective candidate would visit the office and register his details and perhaps have a short interview to further clarify his requirements and skills. However, the internet has freed them from this requirement and many have moved some or all of their operations online.

Recruitment agencies are usually compensated by the employer in one of two ways. The first is a contingency fee paid when one of its candidates accepts a job. This payment is a percentage of the new employee's salary. This arrangement usually has a guarantee in case things don't work out. The second type of compensation is a retainer paid in advance.