Recruitment companies are often used during hiring processes to help with finding suitable candidates for a vacant position. Sometimes the recruitment company will employ a candidate themselves and then contract them out to the client. In other instances, recruitment companies simply link up the potential employer directly with a candidate, and this is what is known as direct placement.
The third-party agency may perform all of the hiring processes such as job posting, screening resumes, interviewing candidates, and more. When direct placement occurs, the recruitment company has identified the top candidate, and that person is then hired by the employer.