For staffing agencies, it seems candidates are being locked up by them and not applying for the direct role. Is it a lack of awareness that the actual direct position is open for the company?

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Well, staffing agencies typically get a cut of the sign on bonus or paid a fee, so it makes sense they'd try to prevent someone from applying directly and cutting them out of the equation.

^ Staffing agencies will never get a cut of any of the candidates pay or sign on bonus. They will be paid a fee by the hiring company, but that fee doesn’t come out of the candidates pocket. If any staffing agency ever asks you for a dime, RUN!

It could be. Some larger companies will only open the roles up to agencies, preventing any direct application.

Staffing agencies often have their own pool of candidates that they're actively trying to place so they might prioritize pitching those candidates for roles they're working on rather than encouraging them to apply directly.

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