Staffing agencies, also known as recruitment agencies or employment agencies, are businesses designed to serve as a liaison between job seekers and companies seeking to fill vacancies within their organization. Functioning as an intermediary, these agencies strive to identify the perfect candidate-employer match, acting on behalf of both parties to streamline the arduous process of job hunting and hiring.

To dissect the operations of a staffing agency, a comprehensive understanding of two crucial terms is paramount. These are: job orders and placement. A job order is a documented request from a company to a staffing agency to fill a particular position. It often contains details about the job description, qualifications required, pay rate, and other relevant information. Placement, on the other hand, is the process of filling the job order, which occurs when the staffing agency successfully matches a job seeker to the job order.

The operational mechanism of staffing agencies is a stepwise procedure, commencing with the receipt of job orders from client companies. These orders are analyzed in detail to understand the exact requirements of the roles. Following this, the agencies sift through their network of job seekers, which often include both active seekers and passive candidates, alongside exploring external resources such as job boards.

Upon identifying potential candidates, the agency takes on the role of the initial interviewer, assessing the candidates against the job requirements. This step often involves background checks, reference checks, skill tests, and preliminary interviews. Once a suitable candidate is identified, they are presented to the company for further evaluation.

Staffing agencies do more than simply pass along a resume, though. They serve as a negotiator, discussing terms, compensation, and benefits on behalf of their candidates. They also facilitate the onboarding process for selected candidates, providing necessary documentation and guidance.

This operational style brings manifold benefits to both job seekers and client companies. For job seekers, the agency provides free access to a plethora of job opportunities, saving time and energy in the job hunting process. For companies, they offer a streamlined hiring process, a vast candidate pool, and a reduction in the administrative burden of recruitment, allowing them to focus on their core business operations.

Different staffing agencies may employ varying techniques in their operations. While some agencies focus on specific sectors, offering specialized staffing services, others provide general recruitment services across all industries. The former, often termed as niche or boutique agencies, have tradeoffs in terms of their in-depth industry knowledge, personalized service, and understanding of specific roles. The latter, however, offer a broader spectrum of candidates and job opportunities but may lack the intricate understanding of particular industries.

The rise of technology has significantly impacted the operations of staffing agencies. Advanced algorithms and Artificial Intelligence (AI) are being employed for efficient candidate sourcing and screening, predictive analytics aid in foreseeing hiring needs, and digital platforms enable effective communication and seamless operations. Yet, the human touch remains irreplaceable in this industry, given the need for personal interactions, negotiations, and intuitive decision-making.

In an era where the 'gig economy' is taking center stage, the importance of staffing agencies is ever increasing. They aid in flexible staffing, helping companies to quickly ramp up or down their workforce based on project needs or market conditions. This flexibility, coupled with the efficiency and effectiveness of their operations, places staffing agencies at the heart of the modern labor market dynamics.

The operations of staffing agencies, therefore, are a complex interplay of industry knowledge, human psychology, negotiation tactics, and technological advancements. Through their efficient matching of job seekers and employers, they play a crucial role in keeping the wheels of the global labor market turning.