Recruitment Agencies are companies that go out into the market to find suitable candidates to fill vacancies in the employer's Company. But most often than not, people tend to confuse recruitment agencies with employment agencies. Two things are entirely different. Let us explain how.
When a candidate gets employed through the Recruitment Agency, they become the employer of the employee. By employee, we mean the same body that hires the Recruitment Agency to find candidates for them.
But in the case of the Employment Agency, the issue is a bit different. If a candidate is hired through an Employment Agency, they become the employee of the Agency and not the Company they are hired for. This happens to give the companies an extra benefit to hiring candidates on a contractual basis.
The role of the Employment Agency is mostly in hiring candidates for the IT firms but in the case of the core engineering positions, it is the Recruitment Agencies who do the job. But eventually, all these companies help in managing the Human Resources of a company. A company may use a recruitment agency in addition to its internal human resource function, especially when seeking external applicants, or it may outsource it's recruiting to the Agency.