How Do Staffing Agencies Work? A Recruiter Explains

The Sunday Scaries hit differently when you're nearing hour five of job board-induced brain rot, wondering if any humans will ever see your application. You might have sent out dozens of résumés this month with nothing to show for it but automated rejection emails. Or perhaps you're stuck in a role that undervalues your skills, but starting yet another job search feels way too overwhelming.

Twenty-five years ago, Nikki Greene was in a similar spot. Working retail with a new baby, she wanted a change but didn't know where to start. While networking, she stumbled across something called "staffing companies."

"I literally said, ‘What is staffing?’" she says. "I had no idea the industry even existed."

Today, Greene is Vice President of the Recruiting Center of Excellence at Kelly, one of the largest staffing firms in the world. Her journey from job seeker to industry vet followed a path many professionals don't know exists: One where you have an actual human advocate, where your résumé gets seen by decision-makers, and where "trying out" a company before committing is standard practice.

How do staffing agencies actually work?

If the phrase "staffing agency" conjures images of fluorescent-lit offices placing people in “Severance”-esque data processing roles—albeit with a little more clarity about the job description—then you're working with outdated information. Today's staffing companies connect professionals at every level with opportunities at major corporations, many of which exclusively hire through agency partners.

"They're completely shocked to know that we work with the majority of Fortune 500 companies," says Greene. For many candidates, "it's their way in."

Here's what this means for your job search: Instead of uploading your résumé to yet another portal where it disappears into the void, you work with someone who has preexisting relationships with hiring managers. They can pick up the phone and say, "I have the perfect person for this role."

With unemployment at 4.2% and competition fierce for quality positions, working with a staffing company isn't settling for less. The traditional application process is broken, so why not choose a path that actually works? Nearly 2.5 million people made this choice in an average week of 2023, many landing permanent roles they couldn't have accessed otherwise.

The staffing company hiring process

For most job searchers, working with a staffing agency starts much like any other job search—by finding and applying to an interesting opportunity on a job board like Indeed, LinkedIn, or the staffing company website. According to Greene, about 70% of people come to Kelly through regular job postings.

Here's where your experience diverges from the traditional black hole of online applications. Because what happens next is that a real person actually contacts you.

"A recruiter reaches out to applicants and introduces staffing," she says. This isn't a five-minute phone screen where someone checks boxes. It's a conversation about the position you found plus your career goals, your experience, and what you're really looking for.

During this conversation, the recruiter explains your options. Some roles offer immediate full-time employment with the client company. Others provide a trial period where both you and the employer can evaluate fit. Some are project-based—perfect if you're exploring a career change or need flexibility.

Project-based, temp-to-hire, and full-time opportunities

At Kelly, we offer three distinct staffing paths, each designed to meet you where you are. Looking for something temporary while you figure out your next big career move? Consider project-based work. Or temp-to-hire positions let you figure out if a position is really right for you. Here’s the difference.

Project-based work gives you flexibility and variety. For example, Kelly works with Blue River Technologies, who develops software for self-driving tractors and other large equipment. Kelly’s project-based, on-the-ground workers help the AI learn how to navigate large fields and complicated terrain. 

Temp-to-hire positions let both you and the employer test the waters before committing. "It works both ways," Greene says. The company wants to try you out, but "the talent can make sure that it's a good match, too." No more Oops, this was absolutely the wrong job blues. Think of it as a trial period that typically runs one to twelve months.

Keep in mind that "temp to hire is not a guarantee," Greene says. The company intends to hire, but it's not a promise. Clear communication about expectations prevents disappointment.

Full-time opportunities work like traditional recruiting, except you have an expert negotiating on your behalf. The agency uses their relationships and market knowledge to match you with permanent positions. Unlike temp positions, where your pay and benefits come via Kelly, you will interview with the company and be their direct employee from day one.

How do staffing agencies make money?

The biggest misconception about staffing agencies involves fees. Legitimate agencies never charge job seekers.

"There are no fees. If a job seeker is charged a fee, the staffing service is not a standup company," Greene says.

So how do agencies make money? Companies pay them to find talent. For project-based and temp-to-hire roles, this involves a markup on your wages. But before you complain about lost pay, note that this arrangement often benefits you financially. Kelly positions typically pay "about 20% higher" than comparable direct-hire roles, Greene says. 

For full-time opportunities, companies pay the agency a finder's fee. Again, this comes entirely from the employer's budget, not your paycheck.

Protecting yourself from employment scams

The rise of remote work has brought an explosion of employment scams. Know the warning signs to prevent yourself from becoming a victim.

Real staffing agencies never ask for money or banking information upfront. Any request for payment or financial details during initial contact immediately identifies a scam.

Watch for these red flags:

• Misspelled company names (like "Kely" or “Kel1y” instead of "Kelly")
• Email addresses from Gmail, Yahoo, or other free services instead of the company domain
• Unsolicited text messages offering jobs
• Requests for money for "training materials" or "background checks"
• Job offers that seem too good to be true (they usually are).

"This week alone I've gotten 19 texts from vendors saying, 'Hey, I just got asked to come work for Kelly,'" Greene says. All of those “job offers” were from scammers.

Not sure if you’re dealing with a scam? Go directly to the staffing company's official website and call their main number to verify that the recruiter who contacted you is legit.

Have someone in your corner for salary talks

Negotiating salary feels uncomfortable for most people. You worry about asking for too much and losing the opportunity, or accepting too little and regretting it later. Working with a staffing agency means having a professional negotiator on your side.

When it comes to salary discussions, "We have quite a bit of input. The clients are typically open,” Greene says, although requests do have to be data-driven. Unlike going it alone, recruiters have internal stats to back up the recommended salary increase. If a client offers below-market rates, your recruiter can present concrete evidence for adjustment.

"We can pull that data to say to a company, ‘Look, $25 per hour is below market,’" Greene explains. While employers control their budgets, having someone who understands compensation benchmarks and can articulate your value makes a significant difference in outcomes.

This advocacy extends beyond base salary. Experienced recruiters are familiar with the nuances of total compensation packages and can identify negotiation opportunities you might miss. They've had these conversations hundreds of times—and now, that expertise will benefit you.

What happens after you start working?

For project-based and temp-to-hire positions, your relationship with the staffing agency continues after you begin your new role. That ongoing support provides a safety net that traditional employment lacks.

"Employees always have a consistent contact," Greene says. Whether it's your original recruiter or a dedicated support person, someone will be available to help with questions or concerns. Some agencies even maintain on-site presence at major clients for immediate assistance.

And if a role doesn't work out for any reason, the agency manages the transition. If the split is happening amicably—like if business needs suddenly change—"Kelly can immediately start to find them another job," says Greene. That’s a big bonus: Instead of starting your job search from zero, you have professionals already working on your next opportunity.

This continuity proves especially valuable early in your career or during industry transitions. Each role builds on the last, and your recruiter understands your growing skills and evolving preferences. They’re career partners, not just one-time matchmakers.

Why working with a staffing agency makes strategic sense

Greene shares a story about her niece, a recent college graduate who almost dismissed an opportunity because it came from a staffing agency rather than directly from the employer. The niece was worried that meant the job was only temporary, and not the start of a long-term relationship with the employer.

Greene explained the reality to her niece. "Some companies only hire through staffing agencies,” she said. “She wouldn't have the opportunity to apply with them if she didn't consider this role."

Many major corporations use staffing agencies as their primary talent pipeline. Some do it to manage risk, and others value the agencies' ability to identify quality talent. Whatever their reasons, these exclusive relationships mean agency partnerships provide access to opportunities you won't find anywhere else.

"This gives you an advantage you wouldn't get as one of 25,000 résumés lost in a corporate talent pool," Greene says. Temp-to-hire positions benefit you as much as the employer. You experience the company culture, evaluate growth opportunities, and determine fit without committing to a permanent move.

Building your network of recruiting partners

Should you work with just one staffing agency or several? The answer might surprise you.

"If you're not finding what you need from one staffing company, absolutely work with other staffing companies," says Greene. Different agencies specialize in different industries and maintain relationships with different employers. Diversifying expands your opportunities.

These connections become invaluable career assets. Markets shift. Industries evolve. Having established relationships with multiple recruiting professionals means you're never starting from scratch when opportunity or necessity demands a change.

However, make sure to stay organized:

• Track which roles you're pursuing through each agency.
• Be transparent about other opportunities to avoid confusion.
• Maintain professional relationships with all your recruiting contacts.

Taking the next step

After 25 years in the industry, Greene has seen staffing evolve from a misunderstood service to an essential career strategy. Her own path—starting as someone who didn't even know what staffing was—shows how much potential staffing services can hold.

Working with a staffing agency doesn’t mean you’re desperate or settling. You’re simply recognizing that the traditional job application process often doesn't work, and instead choosing a more effective path. You gain professional advocacy, access to hidden opportunities, and ongoing career support. No fees. Better salary negotiations. A safety net when roles end.

Whether you're seeking flexibility, changing careers, or looking for your next full-time role, staffing agencies offer so many advantages over submitting applications into the void. As standing out in a sea of candidates grows increasingly difficult, having someone who can put you directly in front of hiring managers changes everything.

Ready to skip the résumé black hole? Connect with a Kelly recruiter who specializes in your industry. They'll help you identify opportunities you didn't know existed—and advocate for you throughout the process.