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I'd say client relationship and focus are the two main differences. Agencies work on projects as they come about while Human Capital Management companies take on lonnnnggg projects and talent management endeavors.
HCM companies work with broader industries. I feel like recruiting agencies have specific focuses or maybe hyper focus on specific ones.
Recruiting agencies typically focus on specific industries or roles, while HCMs hire for more broad areas. Depends on how specific you want to be in your role.
HCM covers the basic functions of HR like payroll, time and attendance, and benefits administration as well as aspects of workforce management, such as employee training, engagement and retention, and compliance. Recruiting agency on the hand is a business that is hired by companies and organizations to find suitable employees. Employers outsource recruitment because it takes a lot of resources and not everyone has the expertise to find and recruit the best talent themselves.
Client relationships are fundamentally differen and there's more expectation on cultivating clients and selling at a recruiting agency