Working with recruitment agencies is one of the most effective ways for employers and job seekers to accomplish their objectives. Recruiters can help employers find the talent they need to fill openings. They can help connect job seekers to great companies that are looking to hire.
The decision to work with recruitment agencies in Toronto can come with a lot of questions from both employers and job seekers. Below, our team answers some of the most common questions we get about working with a recruitment agency.
We’ll answer these questions:
- Why should a job seeker work with a recruiter?
- What are the benefits of employers using a recruitment agency to assist with hiring?
- Are there different types of recruitment agencies?
- What is the difference between a recruiter and a headhunter?
- Why don’t recruiters tell job seekers the name of the company before they apply?
- What’s the best way to work with a headhunter?
- How do recruitment agencies get paid?
- Do job seekers or candidates pay for recruiters?
- When is hiring an external recruiter most useful?
Why should a job seeker work with a recruiter?
Working with a recruiter can give job seekers access to opportunities they may not find on their own, including roles that are not publicly advertised. Recruiters provide guidance throughout the hiring process, from resume feedback and interview preparation to compensation discussions, helping candidates present their experience more effectively. That said, a recruitment agency’s primary role is not to find candidates a job, but to help employers hire the best possible talent. This means recruiters focus on matching top candidates to specific roles where they are a strong fit, rather than placing candidates anywhere available. When there’s alignment, recruitment agencies can save candidates time by connecting them with high-quality opportunities and employers who are ready to hire.
What are the benefits of employers using a recruitment agency to assist with hiring?
Recruitment agencies help employers hire faster and more effectively. They are experts at sourcing, screening, and shortlisting qualified candidates. This reduces the time and resources your team spends on hiring activities.
Agencies bring market knowledge, access to broader talent networks, and expertise in assessing candidate fit. They can also support hard-to-fill, confidential, or high-volume roles. This helps employers reduce hiring risk and improve long-term retention.
Agencies match candidates to roles, culture, management style, and career goals to boost long-term retention.
Are there different types of recruitment agencies?
Yes, recruitment agencies can specialize in different hiring needs. Some focus on permanent placements, while others specialize in contract, temporary, or interim roles. Some agencies concentrate on specific industries or job functions, such as executive search. The right agency for you depends on the type of role, level of seniority, and hiring timeline.
At IQ PARTNERS, our recruiters have specialists across 17+ practice areas. See our list of industries our recruiters specialize in.
What is the difference between a recruiter and a headhunter?
Recruiters and headhunters are terms often used interchangeably. But there are some differences. A recruiter works on filling open roles. They manage applications, screen candidates, and guide employers through the hiring process.
A headhunter usually focuses on proactively identifying and approaching highly specialized or senior-level talent who may not be actively job searching. While both aim to connect the right candidates with the right roles, headhunting is more targeted and often used for executive or niche positions.
Why don’t recruiters tell job seekers the name of the company before they apply?
The company name is not disclosed at the initial application stage to protect confidentiality for some roles. Employers may be conducting sensitive or strategic searches and prefer to limit early exposure of the role. Recruiters often need to follow specific guidelines about when and how company details can be shared.
The company’s name is typically disclosed before any interview takes place, ensuring candidates have sufficient time to research the organization and decide whether they wish to move forward. Candidates are never obligated to continue once the employer’s identity is revealed.
What’s the best way for job seekers to work with a headhunter?
The best way to work with a headhunter is to approach the relationship as a professional partnership built on trust.
Be clear about your career goals, preferred roles, industries, and compensation expectations so the headhunter understands where you want to go. Be honest about your experience, availability, and any constraints.
Be transparent about other interviews and their stages — this helps recruiters manage timing, position you strategically, and advocate for you effectively.
Stay responsive and respectful of their time. If a headhunter reaches out, even if the opportunity isn’t a fit, a thoughtful response helps maintain the relationship. Keep them informed of major career changes, promotions, or new skills, but avoid excessive follow-ups.
How do recruitment agencies get paid?
Recruitment agencies are paid by employers, not job seekers. There are a number of common payment models.
For permanent placements, agencies usually earn a fee when a candidate is successfully hired. This fee is often a percentage of the candidate’s first-year salary and is paid by the employer once the candidate starts work.
For contract or temporary roles, the agency is paid an hourly or daily markup. The employer pays the agency a bill rate, and the agency pays the worker their agreed wage, covering payroll, taxes, and administrative costs.
Some employers also use recruitment agencies on a retained basis, where part of the fee is paid upfront and the remainder upon successful placement. This model is often used for executive or highly specialized roles.
At IQ PARTNERS, our recruiting firm offers multiple pricing models, including percentage-based fees, flat project fees, and hourly consulting rates. We also provide partner programs for ongoing hiring needs with volume discounts.
Learn more about our fee structure here.
Do job seekers or candidates pay for recruiters?
Job seekers do not pay to work with recruiters. Recruitment agencies are typically paid by employers who hire their candidates, not by the candidates themselves.
Legitimate recruiters earn their fees through employer agreements. Job seekers should be cautious of any individual or agency that asks for payment in exchange for job placement services, as this is not standard practice and may be a red flag.
IQ PARTNERS’ services are paid for by employers, so candidates can register and apply for free.
When is hiring an external recruiter most useful?
Hiring an external recruiter is most useful when an organization needs to hire efficiently, access specialized talent, or reduce the strain on internal resources.
External recruiters are especially valuable for hard-to-fill or highly specialized roles where qualified candidates are scarce or not actively job searching. They are also helpful when hiring needs are urgent, confidential, or high volume, as recruiters can quickly mobilize talent networks and manage multiple searches at once.
For candidates, working with a recruiter is ideal early in your career for quick experience (contract), for specialist roles, or if struggling to find work independently.
More insights about recruitment agencies
How Do Recruitment Agencies Get Paid?
