Glossary · Hiring and outsourcing models

Staffing agency

A staffing agency recruits workers and supplies them to client businesses, either as temporary staff the agency employs or as candidates for permanent roles. The agency typically earns a markup on hourly pay or a placement fee. Agencies vary in how deeply they vet candidates and whether they guarantee the hire.

Illustration of a hiring glossary: a reference page of terms with book, search, document and checklist icons

What it means in practice

Domestic staffing agencies are a fast way to fill a seat, but local wages plus an agency markup make them one of the most expensive ways to add ongoing capacity. Placement fees for permanent roles are commonly due when the hire starts, before you know whether the hire works out.

Rekruuto works differently: one flat monthly price per full-time hire in the Philippines, a 14-day start, and a 1-week trial with a replacement or refund. See the full side-by-side on Rekruuto vs a staffing agency.

Check the cost gap for your role with the offshore salary calculator.

  • Direct hire

    A direct hire is a person your company employs itself, on its own payroll, from the first day.

  • Contract-to-hire

    Contract-to-hire is an arrangement where a worker starts on a fixed-term contract and the company can convert them to a permanent employee at the end.

  • Replacement guarantee

    A replacement guarantee is a staffing provider's promise to find a new candidate at no extra cost if a placed hire does not work out within a set period.

  • Remote staffing

    Remote staffing is hiring people who work for your business from their own location, full time or on contract, through a provider that recruits and supports them.

Read next

Hire a full-time professional from the Philippines

Every Rekruuto hire is a full-time professional based in the Philippines who works your hours. Most roles are $1,800 a month, software developers start at $2,500 a month, and an AI Implementation Specialist is $2,500 a month. Candidates pass top 2% vetting, hiring takes 14 days, and every hire starts with a 1-week trial with a replacement or refund.

Book a strategy callAll glossary terms