Staffing agency - All information that you should know
Finding qualified and suitable talents for any organization may often look challenging enough. From reviewing applications, carrying forward the interviews to negotiating salaries, and performing the post joining activities - the procedure is vast indeed. All of the said actions may take considerable time, and it's a known fact that for businesses, time is money.
Due to this reason, these days, many employers prefer partnering with staffing agencies and save a lot of time and effort. This post gives you a clearer idea of what a staffing agency is and how it works. So keep reading and get to know all that's involved!
- What does the term 'staffing agency' refer to?
- The process of hiring a staffing company
- Understanding the charges of a staffing agency in detail
- Advantages of hiring a staffing firm
- Things to consider while choosing a staffing agency
What does the term 'staffing agency' refer to?
You can better define a staffing agency as a matchmaker between employers and workers. It helps companies to find well-qualified candidates effortlessly.
If your business requires additional labor, living the responsibility of finding them out on a staffing agency can help you save time and money. In addition, flexibility and reduced potential legal risks come as additional benefits.
When it comes to talking about the charges of a staffing agency, it's usually a markup that ranges from twenty to hundred percent on the hired candidates' wage. Therefore, using a staffing agency is probably the most viable way to meet your hiring needs in a hassle freeway.
The process of hiring a staffing company
A staffing agency usually recruits employees for businesses that are looking to fill specific positions. The process of hiring such an agency looks like the following.
Step 1: Employer get in touch with the staffing agency
The process of recruiting a staffing agency starts when a business gets in touch with it. Then, the company needs to specify details like the number of employees required, the timeline, the wage or salary structure, and the job responsibilities.
Step 2:The agency designs the job description
Upon receiving the set of information mentioned above, the staffing agency writes up a job description, and then it starts with the advertising process. In addition, they may also reach out to potential candidates over a call or via email.
Step 3: Vetting candidates
Once they start receiving applications from candidates, staffing agencies review their experience and qualifications. Once done, they start scheduling and conducting interviews. Once they get the best-fit candidates from the screening sessions, they introduce them to the hiring manager or employer.
Step 4: Making the final decision
By interviewing the shortlisted candidates, the employer makes a final decision.
Step 5: Paperworks are handled by the agency
Once the employer makes the final hiring decision, staffing agencies take care of the associated paperwork part. The essential paperwork includes taxes, contracts, and other payroll jobs.
Understanding the charges of a staffing agency in detail
As said before, usually staffing agencies charge twenty-five percent to a hundred percent of hired employees' salaries. To make the picture even more transparent for you, here's an example. Suppose you have hired a staffing agency, and the discussed markup is fifty percent. Now, the salaries of the newly hired employees through that agency are $10 per hour. In this scenario, you will pay the agency $15 per hour for their work.
In such cases, when you hire a temporary worker permanently, you may have to pay additional fees for that extending hiring period.
Advantages of hiring a staffing firm
With the evolved pattern of the working module, the way of hiring has also changed. These days employers find it convenient to fill the blank positions with freelance, temporary or part-time workers. In this situation, staffing companies play a vital role in helping organizations complete their talent hunt program. The advantages of hiring a good staffing agency include the following.
Over the past few years, the job market has changed drastically, and hiring has become handier. It's true that finding great talents is unimaginably time-consuming for employers or hiring managers. However, when the employer turns to a reliable staffing partner, it can help them save plenty of time. From prescreening to presenting well-qualified candidates in front of the hiring managers, it does them all.
A step forward in flexibility
Now, for any company, there could be several reasons to avoid hiring full-time employees. The reason behind this is simple! Companies tend to be productive enough and only house employees when and where required. Besides, for any particular business, generating value for every spend is a primary concern, and this is where hiring temp workers helps them a lot. Therefore, with the help of a staffing agency, companies make sure that they have a good flow of workforce to meet the business demands.
Being an employer comes with a lot of legal implications. Starting from covering taxes to labor laws and insurance, a company has to look after this all. Besides, if it's about the financial aspects, there are certain risks while hiring employees directly, such as the uninformed exit of the workforce. However, when employers work with staffing agencies, they take up most of these liabilities on their shoulders and help employers wrap up the recruitment procedure with notably reduced chances of potential legal or integrity risks.
Things to consider while choosing a staffing agency
Regardless of the industry you're in, the value of a well-performing workforce is inevitable. Therefore, partnering with a reliable staffing firm can do wonders for your business. In addition, if you follow some strategies while choosing the one, it will add more to your accounting. Listed below are some factors to consider while making a move.
The first and essential step includes ensuring the type of talent you are looking for as an employer. No matter which industry you belong to, hiring candidates who aren't fit for your job will undoubtedly leave negative impacts. Therefore, it's always a good idea to work with a niche-specific staffing agency dedicated to a specialized industry, position, or type of employee. In this way, you will be ensured with fetching the top talented heads to align well with your organization.
Techniques that the staffing agency uses to recruit
Such recruiting agencies' methodology to bring in talents speaks loud about their potential to be your partner in the journey. However, if an agency uses the same process that you do, there's no meaning to partner with such firms as it will bring the same set of candidates you have already come across.
Is it just about hiring, or you're expecting the agencies to look after onboarding, training, skill tests, etc.? Not all firms assist with all this, so be cautious while choosing the one. Nevertheless, it solely depends upon your requirements. If hiring is the only help you're looking for, then you could overlook this specific factor. However, there is nothing bad if you are gaining something extra!
Navigating through the world of recruitment involves aspects like staffing, human resources, compliance, and payroll. All of these jobs are pretty daunting. So naturally, no business searching for new talent will prefer to mystify the said complex work module.
So, when you decide to deploy a company providing staffing solutions, it's more than vital to check that they don't hide the soft costs. The best way to find this out is by asking straightforward questions and checking if you're getting clear answers to them.
Also, you need to thoroughly check the contract before signing and understand the cost breakdowns and the level of potential services provided by the firm that will supply you with new resources.
When talking about working in the staffing industry, it's extremely important to hold extensive market knowledge. The staffing company you are going to hire must hold enough knowledge of the industry, dimensions of jobs, nature of resources, and so on. This will allow it to supply you with a well-qualified and productive workforce.
In a one-liner, staffing solutions providing organizations go way beyond just sending warm bodies to your company. This makes it vital to turn them into trusted assets that you can rely on for useful, satisfactory, and in-depth industry information.
Ask your new partners about the latest recruiting trends in terms of temporary full-time and freelance hiring. Also, ask for the challenges that the market is facing currently, and while getting the answer, don't miss to pay attention to the detail in the given responses.
Working with the right staffing partner makes the process of hiring temporary, permanent, and freelance workforce amazingly convenient. In addition, a good staffing organization acts as your company's strategic advisor. From designing a hiring strategy to handling onboarding formalities, they play the best hands to supply an efficient and adept workforce.
Hence, to ensure that you manage to gain the highest return on your investment, it's essential to choose a trustworthy staffing partner who won't take this complex lightly in terms of hiring suitable candidates. Therefore, hold the best hands and make the process of recruitment convenient, hassle-free, and accurate.
About the author
Dennis Hoinkis has been working as a web developer and in online marketing since 1998. After building up a marketing agency and the exit in 2013, he consulted international groups as a freelance consultant. Since 2020, he and his team now offer staffing services in this field.
Dennis Hoinkis CEO, FSOM Group Corp.