All About Staffing Agency

What is a staffing agency?

To fill certain positions, businesses use staffing services to identify people. They assist businesses in filling a variety of positions, including direct hire, temp to hire (a temporary assignment with a defined start and end date), and temporary to hire (a brief assignment designed to see whether a temporary employee will be a good long-term match for the company) (a permanent role when the employment company serves as the recruiter).

If the agency doesn't already have a readily available position, it will often list the position on job sites like Indeed and other locations where job seekers are likely to look and qualified candidates in its talent pool. Through professional networking sites like LinkedIn, where they can limit search results by keyword, job function, area, industry, and more, the firm can also get in touch with eligible individuals directly. When employing a specialized individual with a certain skill set, this strategy is especially beneficial.

The organization will then accept applications, have interviews, and, if necessary, do background checks, just like any other company would. When the ideal applicant is identified, they are employed to work for the organization (except in the case of direct-hire positions). The employer chooses how long the employee will work there, but the staffing agency determines the employee's pay and any benefits that may be offered.

What is the staffing agency process?

Finding qualified staff is still a challenge for many small firms. 69% of worldwide employers, a 15-year high, said they are having trouble finding employees with the ideal combination of technical, soft, and personal abilities. A staffing company can assist your company in overcoming that difficulty.

The procedure usually proceeds as follows when you decide to engage with a staffing agency since you need new employees.

The employer contacts the staffing agency -

You should first get in touch with a staffing company that specializes in your field, providing details about the position's requirements, the number of employees required, the timeframe for hiring new employees, and the hourly pay or salary.

The job description is made by the agency -

The staffing company then creates a job description for your company and advertises it. If there is a particular applicant who would be a good fit for the position, it might also get in touch with them directly.

Candidates are examined by the agency -

The hiring company evaluates applicants' expertise and credentials when they start submitting applications for open positions before setting up and holding interviews. Then they decide which candidates to recommend to your company's recruiting manager are the most qualified.

The final choice is made by the employer -

Before making a final hiring choice, the hiring manager or company owner can interview the best job candidates from the staffing agency. You and the crew no longer must spend hours going through numerous applicants.

The documentation is handled by the agency -

Most staffing firms take care of all the paperwork related to new employment, including contracts, taxes, and other payroll duties.

What advantages do hiring companies offer?

As businesses increasingly turn to part-time, freelance, and temporary workers to fill their workforce gaps, staffing services have emerged as a crucial resource for locating talent swiftly and effectively. Here are just a few of the many benefits a professional staffing company can offer your company.

Fast hiring

The hiring process is longer and more challenging now than it was in earlier decades due to the significant changes in the employment market over the last several years. Working with a staffing firm is more expedient and straightforward.

The Coca-Cola Consolidate d’s Matthew Rowles, senior manager of talent acquisition operations, claims that finding excellent talent is becoming increasingly difficult, and time-consuming and conducting interviews, all while still being responsible for their regular business operations. Working with a reliable staffing partner could save you time and money. A staffing company can prescreen and qualify candidates so that the manager only interviews people who are a good fit for the position.

Reduced team workload

One benefit of using a staffing agency instead of delegating hiring duties to a member of your team is that it frees up that person's time to focus on important role-specific activities. A staffing firm may concentrate on the hiring process because that is what it does best. However, if your staff members are required to use some of their working hours to screen and interview multiple individuals, it may disrupt their daily routine and lower productivity. That issue is resolved by staffing agencies.

 Flexibility

Many businesses are delaying recruiting full-time employees, according to AJ Burstein, co-founder of the on-demand staffing platform Wonolo, for several reasons. Leaner operations have a significant impact on this.

Companies are attempting to increase productivity by only employing people when they are necessary, according to Burstein. They must discover measures to guarantee that every dollar they spend benefits the company. Using temporary employment enables them to just have workers on hand when they are needed.

Employers are starting to understand the advantages of having a flexible workforce that can be dynamically altered to suit their hiring needs continuingly, according to Jason Leverant, president, and chief operating officer of the national staffing franchise AtWork Group.

According to Leverant, "the key motive in the push to bring on a workforce that can alter with the ebb and flow" was the flexibility of using a staffing agency with client's business demands."

 Specialized hiring

Over 90% of businesses are having trouble filling positions owing to a skills gap, according to Monster's Future of Work Report 2022. A specialist staffing company can ease the process of hiring a specialized worker with certain skills.

For instance, some companies only work to fill positions in the legal or technology sectors. They can find the ideal candidate for your position because they have the required resources, connections, and amassed pools of passive individuals searching for new chances. Additionally, their in-depth understanding of local wage ranges and market trends, as well as their aptitude for spotting red flags during the screening process, can ultimately save you money.

What are common misconceptions about staffing agencies?

Although using a hiring agency has some drawbacks, some of the alleged drawbacks may turn out to be advantages. Here are two typical myths regarding outsourcing your employment debunked.

Too expensive

Despite being untrue, one of the most pervasive misconceptions about using a staffing agency is that it is too expensive to be worthwhile. Why pay more in recruiting fees when you have the option of hiring someone yourself? However, even though you may believe you are saving money upfront, hiring a staffing agency may end up costing your business less overall.

Many businesses simply consider the agency's fees when estimating costs, failing to recognize the value and savings they may offer as well, according to Rowles. Due to lost productivity and resource allocation, the cost of holding a position open longer increases. Working with a staffing company can speed up the hiring process and reduce productivity loss.

Lower candidate quality

Some businesses might think that employees employed by staffing firms are only there because they were unable to find employment elsewhere. Contrary to popular belief, temporary workers are frequently overqualified for the positions they hold, according to Burstein.

Since temporary roles are frequently simpler to obtain at first than permanent ones, he explained, "many employees choose to work temp jobs because they value flexibility or they are seeking to break into a different profession, or perhaps they just want a major change." Because it gives them a greater understanding of organizations at the ground level, we frequently see MBAs working as entry-level temp employees.

How can you begin working with a staffing firm?

Find the right agency.

Before using a staffing agency to find exceptional individuals, you must pick a company that is appropriate for your enterprise. Leverant stressed the need of picking a corporation that has an outstanding reputation for adhering to ethical business standards.

Make sure you're working with a respectable company that puts out proud employees, he advised. Additionally, you want to confirm that they have the necessary insurance, such as general liability and workers' compensation insurance.

Like other business partnerships, a staffing agency must add value to you for it to be worthwhile for you to invest in it.

Rowles advised sitting down with a staffing company to determine whether they can benefit your business. " The author suggests that you "look for a company that views [your organization] as a business partner, not just a customer.

Before you sign up or make any payments if you opt to use an on-demand staffing platform rather than a typical staffing firm, examine reviews and make sure the website is regarded well by both business owners and employees.

 Be clear about your needs.

Good staffing companies want to assist you in finding the greatest employees for your business, but they won't be able to do that if you don't describe your organization's needs, your job duties, and the ideal candidate in clear and detailed terms. Describe any workplace policies (dress code, hours, breaks, etc.) to offer the staffing firm representative an impression of your corporate culture and the type of professional who would succeed at your organization. This goes beyond outlining the essential responsibilities and qualifications for the job.

Once you've outlined your requirements in detail, inform the recruiter so they may begin their search. Be sure to notify the agency if your needs and tastes change at any time so they can modify their search.

Check the legal aspects.

Check that employment-related legal requirements, such as worker classification and payroll taxes, are taken care of depending on the positions a staffing service is helping you fill. The staffing agency should ensure that the personnel you use are indeed employees and not independent contractors as they are the official employer for tax purposes for temporary and temp-to-hire positions, according to Leverant.

" Additionally, you should review the contracts to make sure that there are sufficient indemnification clauses in place, ideally a "dual indemnification" clause that protects both parties from possible issues.

Maintain a good relationship

It may take some trial and error to find the best staffing agency for your company, but once you've found one that offers top-notch service and highly skilled individuals, stick with it and provide feedback along the way. You and the company can both benefit from discussing the performance of new hires with your agency representative as it relates to the next recruitment searches.

How strongly should you trust a staffing firm?

Whether or not you should base all your hiring decisions on a staffing firm will depend on the requirements of your business, the urgency of filling the position, and your budget. You might think about including at least one internal vetting stage even though some agencies offer full-cycle recruitment support from the initial job brief to the new employee's onboarding.

For instance, you may conduct a final interview or informal conversation with the candidate and a member of the executive team who will be their future direct boss. This can help ensure that the potential employee fits the company's culture in addition to allowing the candidate the ability to ask questions that an agency would not be able to answer.

Some companies choose to hire staffing firms exclusively for the preliminary screening stage of weeding through the numerous incoming applications. These businesses opt to handle everything else on their own. While some rely only on internal resources for hiring, job placement, and marketing, others also depend on other businesses. Businesses can also choose to continue internal recruitment efforts in addition to staffing agency services to have the best of both worlds, so to speak.

Are staffing firms a wise investment for your company?

Utilizing a staffing agency can streamline the recruitment process, relieve strain on your current employees, provide you flexibility in the types of hires you make, and remove legal problems. However, its services have an added cost that can reach 100% of an employee's annual compensation, and they are less likely to fit the company's culture.

To ensure the best fit, it may be a good idea to combine an agency's efforts with further internal screening. If you decide to use a staffing agency entirely, make sure to carefully assess the requirements, objectives, and financial constraints of your business; do a complete reference and reputation check, and state your employment requirements in a clear, succinct manner.

Instead of employing a traditional employment agency, you can use on-demand hiring platforms like Upwork, Freelancer.com, and Wonolo since they give you access to independent workers who are available on demand. prepared to work, typically remotely. These platforms operate somewhat differently as independent contractors, so you oversee paying them directly and supplying them with the services at the end of the year with a 1099 tax form. If these individuals are properly classified, you are still exempt from formal employer obligations (payroll taxes, benefits, etc.), just like with staffing agency employees.

It's ultimately up to you to choose how much of a role a staffing agency should play to maximize effectiveness and fit the requirements of your business.