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FOR EVERYONE5 min readMarch 3, 2026

Staffing Agency vs. Recruitment Agency: What's the Difference in Ontario?

Not sure whether you need a staffing agency or a recruitment agency? We break down the key differences for Ontario businesses.

What Is a Staffing Agency?


A staffing agency focuses on placing workers — typically into temporary, contract, or temp-to-perm roles. The agency acts as the employer of record during the placement, handling payroll, benefits, and HR administration.


Staffing agencies are most commonly used for:

  • Temporary or seasonal staffing needs
  • Urgent roles that need to be filled fast
  • High-volume hiring in manufacturing, logistics, and retail
  • Temp-to-perm placements

  • What Is a Recruitment Agency?


    A recruitment agency (sometimes called a headhunter) focuses on finding and placing candidates into permanent positions — typically at a higher level. Once placed, the candidate goes directly onto the client company's payroll.


    Recruitment agencies are more commonly used for:

  • Permanent, mid-to-senior level hires
  • Specialized or hard-to-find skill sets
  • Executive and leadership searches

  • The key difference: staffing agencies often employ the worker during placement. Recruitment agencies facilitate the hire, but the employer takes the worker on directly.

    How Do the Fee Structures Compare?


    Staffing agency fees: A markup on the worker's hourly rate — typically 25–50% above base wage. No upfront cost to the employer for temporary placements.


    Recruitment agency fees: A placement fee — typically 15–25% of the placed candidate's first-year salary — paid after a successful hire.


    Which One Do You Need?


    If you're an employer:

  • Need workers this week? → Staffing agency
  • Filling a permanent senior role? → Recruitment agency
  • Want to trial someone before committing? → Staffing agency with temp-to-perm

  • If you're a job seeker:

  • Looking for immediate work? → Staffing agency
  • Targeting a senior or specialist role? → Recruitment agency

  • Where Does Western Jobs Fit?


    Western Jobs is a full-service staffing agency operating across Ontario — from Toronto and Mississauga to Vaughan, Brampton, Hamilton, and London. We specialize in temporary, permanent, and temp-to-perm placements across 47 industries.

    WESTERN JOBS

    Ready to work with us?

    Whether you're hiring or job seeking, Western Jobs connects Ontario businesses and candidates fast.