Manpower vs. Placement Companies: The Differences
Manpower and Placement – The Differences Many candidates today are unaware of the distinction. To many, they seem identical, but that is not the case. There are fundamental differences between a Placement Agency (Headhunters/Recruitment) and a Manpower Agency (Staffing/Temp Agency). In this article, we will list some of them, ranging from the employment method and recruitment style to the pros and cons. Where is it better for a candidate to apply?
1. Differences in Employment Method
The differences between Manpower and Placement start with how the candidate is employed. A Placement Agency is not permitted to employ the worker directly. Instead, the employee is employed directly by the employer (the hiring company), and their salary and benefits are paid directly by that employer. In a Manpower Agency, the employee is employed indirectly. This means the direct employer paying the salary and benefits is the Manpower Agency, but in practice, the employee works at the client's site.
2. Recruitment Method in a Placement Agency
A placement agency operates to locate relevant candidates for open positions it holds. The process includes screening CVs, sourcing, interviews, and full accompaniment up to the moment the candidate is hired by the recruiting company. At this point, the placement agency's relationship with the candidate ends. The candidate receives their salary and all social benefits directly from the employer. This advantage allows them to be a company employee from day one and accumulate seniority (tenure) within the company they joined.
3. Manpower Agency (Staffing)
This agency also operates to locate relevant candidates for its open slots. The search process is generally similar to that of a placement agency, except for the nature of employment. What does this mean? An employee hired through a Manpower Agency is essentially working through a contractor. They are an employee of the Manpower Agency from day one, and their salary and benefits come directly from the agency. This means they cannot accumulate seniority at the actual workplace (the client's site). When the project at the employer's site ends, they usually return to the Manpower Agency for the next project.
4. Where Should You Apply?
For an employer, working with a Manpower/Outsourcing agency usually costs more than working with a Placement Agency, because there is no employer-employee relationship between the client and the worker. The advantage of working with a Manpower Agency lies in the employer's ability to test the employee's performance. Sometimes, at the end of the contract period between the employer and the Manpower Agency, employees are "absorbed" into the organization and hired directly, eliminating the mediating factor.
5. In Conclusion
Ultimately, clear differences can be seen between indirect employment via a Manpower Agency and screening via a Placement Agency that leads to direct hiring by the employer. You need to consider what is right for your professional future.
6. Job Search via OctoSource Placement
Are you looking to work directly for an employer? We would be happy to assist. You can search for jobs on the OctoSource High-Tech Placement job board for hundreds of hot positions in the best startups and high-tech companies in the market. Employers – Looking to hire employees directly? Leave us an inquiry here, and we will make sure to get back to you.
Manpower and Placement – The Differences Many candidates today are unaware of the distinction. To many, they seem identical, but that is not the case. There are fundamental differences between a Placement Agency (Headhunters/Recruitment) and a Manpower Agency (Staffing/Temp Agency). In this article, we will list some of them, ranging from the employment method and recruitment style to the pros and cons. Where is it better for a candidate to apply?
1. Differences in Employment Method
The differences between Manpower and Placement start with how the candidate is employed. A Placement Agency is not permitted to employ the worker directly. Instead, the employee is employed directly by the employer (the hiring company), and their salary and benefits are paid directly by that employer. In a Manpower Agency, the employee is employed indirectly. This means the direct employer paying the salary and benefits is the Manpower Agency, but in practice, the employee works at the client's site.
2. Recruitment Method in a Placement Agency
A placement agency operates to locate relevant candidates for open positions it holds. The process includes screening CVs, sourcing, interviews, and full accompaniment up to the moment the candidate is hired by the recruiting company. At this point, the placement agency's relationship with the candidate ends. The candidate receives their salary and all social benefits directly from the employer. This advantage allows them to be a company employee from day one and accumulate seniority (tenure) within the company they joined.
3. Manpower Agency (Staffing)
This agency also operates to locate relevant candidates for its open slots. The search process is generally similar to that of a placement agency, except for the nature of employment. What does this mean? An employee hired through a Manpower Agency is essentially working through a contractor. They are an employee of the Manpower Agency from day one, and their salary and benefits come directly from the agency. This means they cannot accumulate seniority at the actual workplace (the client's site). When the project at the employer's site ends, they usually return to the Manpower Agency for the next project.
4. Where Should You Apply?
For an employer, working with a Manpower/Outsourcing agency usually costs more than working with a Placement Agency, because there is no employer-employee relationship between the client and the worker. The advantage of working with a Manpower Agency lies in the employer's ability to test the employee's performance. Sometimes, at the end of the contract period between the employer and the Manpower Agency, employees are "absorbed" into the organization and hired directly, eliminating the mediating factor.
5. In Conclusion
Ultimately, clear differences can be seen between indirect employment via a Manpower Agency and screening via a Placement Agency that leads to direct hiring by the employer. You need to consider what is right for your professional future.
6. Job Search via OctoSource Placement
Are you looking to work directly for an employer? We would be happy to assist. You can search for jobs on the OctoSource High-Tech Placement job board for hundreds of hot positions in the best startups and high-tech companies in the market. Employers – Looking to hire employees directly? Leave us an inquiry here, and we will make sure to get back to you.