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Staffing Agencies Are Beneficial

Staffing Agencies Are Beneficial

A recent study reported that nearly 90% of all companies in the United States utilize or use the service of a staffing agency.  With such a staggering percentage, you may be tempted to wonder if staffing agencies are beneficial or good for your business or your career.  The answer is overwhelmingly yes.  Staffing agencies are both beneficial and can help in finding qualified talent or helping you find that perfect position.

Staffing agencies have a long and rich history in America.  They have been utilized for their ability to dig deep into their rolodex and their connections to place qualified candidates.  Staffing agencies do not charge the candidate, rather opting for a one-time fee or an hourly amount, dependent on the time an employee works.

Reasons To Hire A Staffing Agency

We’re going to first discuss why you should utilize the services of a staffing agency from the perspective of an employer or company.  Remember, as you are the employer, you will be paying the staffing agency for the work they do.  In a one-time fee arrangement, expect to pay anywhere from 10-33% of the position salary once it’s filled with a candidate.

It saves you time

Perhaps the most compelling reason to hire a staffing agency is that doing so can save you time.  You won’t have to worry about posting open positions on job boards, advertising those positions, or screen initial candidates and applicants.  All of that work will be handled by the agency.

It saves you money

Although you will have to pay the agency fee, in the long run you will save money by utilizing the services of an agency.  You will likely receive more-qualified candidates who will need less training.  In addition, these candidates will likely be more loyal and willing to work for your company for longer.  Lastly, you will be able to fill the open position more quickly, allowing the work to be completed without missing a beat.

More candidates

Staffing agencies have many years of experience in placing candidates.  As-such, they have a large pool of qualified and skilled candidates they can present to you.  You’ll be able to interview and extend an offer to the best candidate from this exclusive pool.

Only serious applicants

When going through a staffing agency, they will only send you serious candidates.  These are candidates who understand the nature of your work and your industry.  They will be prepared for the work and the role expectations.  You won’t have to worry about extensive training nor will you have to sift through resumes which don’t fit the profile of the role.

The staffing agency is motivated to fill the role

Staffing agencies only get paid when the position is successfully filled.  As-such, it is in their best interest to send the best, most qualified leads and candidates.  They will work to find those candidates and to ensure that they are prepared for the interview and the needs of the company and the role.

Flexibility

Many staffing agencies work with candidates who are looking or are open to temporary or part-time positions.  If you or your company are short staffed, utilizing the services of a staffing agency to find part-time or temporary help is extremely beneficial.

Guaranteed Hire

Staffing agencies need to fill roles.  However, most offer certain guarantees that if a candidate does not live up to expectations or abruptly quits, then the agency will replace that individual at no cost to the employer.

Help and support

The staffing agency will help and provide you with support if something goes wrong or if a candidate is not a good fit.  They will be able to speak with the candidate and see if they can encourage them or assist them with the skills needed.

Reasons To Not Hire A Staffing Agency

Next, we’re going to discuss reasons you shouldn’t hire a staffing agency.  Although hiring a staffing agency has its benefits, there are a few drawbacks as-well that you should consider.

Additional paperwork and processes

Getting work done in-house is more seamless and can be changed quickly.  However, going with a staffing agency adds more paperwork and processes to your hiring process.  You will no longer be able to make changes as quickly, as you will have to notify the agency who can make the updates.

It can get costly

Although you can save money by utilizing the services of an agency, if you have a one-time fee arrangement, you will need to procure that amount at the time of hire.  This can be costly, especially when hiring for senior and executive roles.

There could be few candidates

Going with the wrong agency or one that is inexperienced in your field could yield few or poor candidates.  You should always opt to go for a staffing agency that understands your field and industry to ensure they have a healthy pool of candidates.

Employee resentment

If you opt to go for the hourly fee, you could have employees feeling resentful and taken advantage of.  As you will be paying the hourly fee to the agency, the employee will not be seeing that full check.  This could lead to feelings of frustration and unfairness.

Unnecessary

In times where jobs are scarce, going through a staffing agency may be unnecessary.  As candidates will be plentiful, it would be easier to post the position on a job board and have those candidates apply directly.

Employee hierarchy

If you hire some employees via a staffing agency and others directly, there could be an unintended consequence of hierarchy.  Employees could feel that not being hired directly was an insult or that they needed extra assistance to land the position.  Though these feelings may not be true, they are difficult to assuage and explain.

Conclusion

Going through a staffing agency is a difficult choice.  Doing so can save you and your employer time and money and can lead to a larger pool of qualified and skilled candidates.  However, staffing agencies may be unnecessary, especially during periods of recession or when jobs are scarce.  In addition, going through a staffing agency can cause feelings of resentment and unfairness in your staff, which are difficult to assuage.

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