If you are hiring and you are not sure if you need to use a staffing agency, this article answers some useful questions, which will help your decision making.
What is a staffing agency?
A staffing agency works on your behalf to find temporary, permanent or temp to permanent resources on a contract basis. Here are the definitions based on this article from American Staffing Association.
- Placement – A staffing firm finds resources for a permanent position for you.
- Temporary Staffing – A staffing firm finds contract resources for you to fill a temporary need like temporary projects, seasonal workloads or special projects. The contractor can be its own employee or the staffing agency can work with another independent contractor.
- Temporary-to-Hire – A staffing firm employee/contractor works for you on a trial basis. If you like the contractor, you have the option to hire them as permanent employee. This helps make better hiring decisions, since you have worked with them and know their capabilities and team fit.
- Long-Term Staffing – A staffing firm supplies either its own employee/independent contractor to work for you on a long term basis.
When would you hire a contractor?
You would hire a contractor, when you have a new project/contract/order, which requires additional help to get it completed within the scheduled time. Based on your Project Plan, you might have estimated one or more resources required for the duration of the project to deliver within the timeline. Also, you think you can maintain the project after the completion, using your existing team. This gives you a lot of flexibility in the allocation of your resources wisely, without making any long-term commitments. You would also hire a contractor to try them before making a decision. This is a continuing trend, especially after the last two recessions when companies had to downsize a lot to sustain.
When to hire a staffing agency?
There are a few reasons, why you can hire a staffing agency.
- If you are short of resources and you do not have the time to manage the hiring process.
- If you do not have someone who can work as a recruiter to shortlist and screen the resumes.
- If you need a large number of resources, which your internal hiring team cannot handle.
- If you are a small business and you are not using recruiting software.
Benefits of using a staffing agency
- Recruiting Expertise – A staffing agency recruiter is always working with clients and candidates. They can quickly understand your requirements, and start sourcing and screening the right candidates to fit your job requirement.
- Increased Talent Pool – Staffing agencies are always working with active candidates, while also nurturing a passive candidate pool. So, they have access to a larger talent pool at any given point in time.
- Fewer Candidates – A staffing agency recruiter will source, short list and screen the candidates. You will be interviewing only a select few candidates, which will give you more time to be productive with your business activities. If you do not like a candidate and you provide appropriate feedback. The recruiter will hone in their search to send you more targeted candidates. A staffing agency recruiter is more interested in placements, so they will work hard to provide you a candidate you will hire. This will save you a lot of time.
- Easy to let go – When you hire a staffing agency, it is easy to hire and fire a temp worker. All you have to do is let the staffing agency know that you would like to terminate the services. It is as simple as that. As per this article, in 1990 there were 2 employment laws, in 1980 there were 125 laws and now there are 2200 employment laws. With the myriad employment laws, it is easy to reduce the risk of lawsuits if you hire from a staffing agency.
- Try before you hire – Read this article on how much it costs to hire an employee. If after you put a lot of effort in hiring an employee, you find them to be not a good fit, it is a drain on your time, money and resources. You will also have to justify the reason to let go of an employee. Using a staffing firm provides you the flexibility to work with the employee on a temporary basis, and to see if they have the required skills for the job and how well they work with the other team members, before making a decision to hire them permanently.
- No need to run payroll – You will not need to run payroll and manage all the tax deductions and paperwork. The staffing firm invoices you and you pay the firm. It is a much simpler transaction.
- No need to provide benefits – Since the contractor is not an employee, you will not need to provide any benefits. This will save you significant amount of money.
- Cannot file unemployment/workers compensation claims – Since the contractor is not employed by you. They cannot file unemployment claims due to loss of employment or worker’s compensation claim as a result of an injury on the job. These claims can result in your tax rates going up.
- Cost benefit – There are savings in the form of job advertising, recruiting, screening and testing costs. This results in saving time, money and resources.
With this background, it will help you immensely if you use a recruiting software to manage your hiring. When you use recruiting software, you can channel all your candidates through the recruiting software and see the quality of hires from the various staffing vendors. This will help you immensely in working with the agency that fits your needs.
Recruiteze is a simple online recruiting software
With the online recruiting software offered by Recruiteze, you can manage and track all your jobs, candidates, notes and communication in one place. It is easy for everyone to see all your hiring metrics and notes. You can get a version for $10 per user per month, that is less than 3 Starbucks lattes. If you are not using recruiting software, or you are not happy with your current system, it is time for an upgrade. Try Recruiteze Free today!
Here are some articles in our buyer education series, which will help you pick the right recruiting software for your needs.
Online applicant tracking system vs On-premise ATS
Why you should use an online recruiting software?
What to look for in an online recruiting software?
Most useful features of an online recruiting software
Top 12 benefits of an online recruiting software
Do you really need AI in your online recruiting software?