A staffing agency can save your business time and money and help you find well-qualified candidates.
Hiring for a small business is not an overnight process. Reviewing applications, interviewing candidates and determining salaries take precious time away from a business owner’s regular obligations, which may end up hurting the company in the long run. That’s why some employers partner with staffing agencies, which take a lot of the time and effort out of the search for candidates by providing workers for open roles.
Using a staffing agency isn’t the right choice for every business, but if you’re considering working with one to meet your hiring needs, here’s what you need to know about the process.
Staffing agencies play a valuable role in today’s job market by connecting employers with qualified talent. For both companies and job seekers, partnering with staffing firms offers major perks compared to traditional hiring and job search methods.
This comprehensive guide explores the many advantages of staffing agencies. Read on to understand how recruiters can save you time reduce risk, and access top talent.
What is a Staffing Agency?
Staffing agencies also called temp agencies or recruiters, are third-party companies that identify screen, and place talent in temporary, temp-to-hire, and permanent job roles. They function as intermediaries between employers and job candidates.
Large staffing firms like Randstad, Robert Half, and ManpowerGroup have national reach. But many local independent agencies specialize in particular industries like healthcare, technology, administrative, or light industrial.
Employers utilize staffing agency services to fill short- and long-term talent needs faster and with less effort compared to traditional hiring. Candidates can benefit from recruiters’ connections to find more job opportunities.
Benefits for Employers
Companies work with staffing agencies to:
- Quickly fill temporary vacancies
- Access specialized talent and niche skills
- Screen and validate candidate qualifications
- Reduce time spent reviewing resumes
- Hire workers without adding payroll
- Expand workforce for short-term projects
- Convert temp roles into permanent hires
- Lower long-term recruiting costs
Hiring through staffing delivers multiple advantages over conventional recruiting:
Faster Hiring
Agencies have pools of pre-vetted candidates ready to work. Positions get filled in days or weeks rather than months.
Reduced Workload
Recruiters handle job posting, screening, interviewing and background checks. Less drain on HR.
Specialized Talent
Access niche skills and experienced professionals. Recruiters have connections you don’t.
Lower Risk
Temp hires allow “test driving” workers before permanent offers.
Scalability
Swiftly scale up workforce for seasonal or sudden needs.
Try Before You Buy
Temp-to-hire arrangements let you convert standout workers to permanent roles.
Cost Efficiency
Payroll, benefits, onboarding handled by agency. Saves expenses.
Using staffing agencies to fill talent needs is generally faster, easier, and lower-risk than going it alone.
Benefits for Job Seekers
Candidates also gain advantages partnering with recruiters:
- Gain exposure to more job opportunities
- Avoid online job boards and automated systems
- Get tips to create standout resumes
- Receive coaching to excel in interviews
- Access temporary-to-permanent jobs
- Earn supplemental income between jobs
- Expand skills working different assignments
- Get help finding the right fit
Working with a staffing recruiter opens doors and eases the job search through:
Inside Connections
Recruiters have exclusive relationships with employers seeking talent.
Personal Touch
Individualized attention from a hiring expert advising your search.
Resume and Interview Help
Pro tips to make you stand out as a top candidate.
Multiple Options
Exposure to varied short- and long-term openings matching your goals.
Temp Work
Paid assignments in between permanent jobs to gain experience.
Temp-to-Perm
Proving yourself in temp roles can lead to full-time job offers.
Career Guidance
Experts evaluate strengths and interests to match you with ideal roles.
Recruiters become your advocate, offering guidance and connections.
Key Differences From Job Boards
Staffing agencies differ from large online job boards like Indeed, Monster, or CareerBuilder in several key ways:
Staffing Agencies
- Personalized service
- Pre-screened job opportunities
- Coaching on resumes and interviews
- Develop relationship with a recruiter
- Promote you to matched employers
- Faster process from search to hire
Job Boards
- Self-service process
- Broad range of open roles
- Submit resume to database
- No individual relationship
- Employers search database themselves
- Slower process from search to hire
The hands-on, customized attention from recruiters creates a more streamlined hiring experience.
When To Use Staffing Agencies
Here are situations when engaging a staffing agency makes the most sense for employers:
- Filling temporary or seasonal roles
- Handling unexpected vacancies
- Finding niche or highly-skilled talent
- Screening candidates for temp-to-hire programs
- Accessing top talent with limited recruiting resources
- Reducing workload for HR staff
- Quickly scaling up workforce for short-term needs
And scenarios where candidates get the most benefit from working with recruiters:
- If you lack connections to hidden job openings
- To get expert coaching on your resume and job search
- When interested in temp positions between permanent jobs
- To gain work experience in a new field
- If you struggle on interviews and need practice
- When you’re open to temp-to-hire opportunities
- If you feel overwhelmed navigating the job search alone
Matching your needs to a staffing firm’s strengths maximizes the benefits.
Types of Staffing Agency Workers
When partnering with a staffing agency, it’s helpful to understand the different categories of workers:
Temporary – Short term assignments ranging from a day to over a year. Workers remain employees of the staffing agency.
Temp-to-Hire – A working interview where the individual begins as a temp. Excellent performers can be converted to permanent roles with the hiring company.
Direct Hire – The client immediately hires the person as a regular employee off their payroll. The agency sources candidates but does not employ them.
Payroll Services – The staffing firm handles payroll, benefits, and compliance for the worker, who is permanently employed by the company.
Discuss which arrangements best suit your needs when starting with a staffing partner.
Finding the Right Staffing Agency
Not all recruiters are equal. When researching staffing firms:
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Review their specialty areas and client industries
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Ask about screening processes and candidate pools
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Tour their offices to meet staff
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Assess customer satisfaction and retention
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Check their reputation for responsiveness and results
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Evaluate chemistry – do they understand your needs?
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Examine years in business, leadership, growth
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Verify legal compliance and safety record
Take time to vet agencies’ expertise, ethics, and performance. The right fit leads to better outcomes.
Making the Most of Your Staffing Partnership
Follow these tips to maximize your staffing relationship:
Employers
- Clearly explain roles, requirements, and workplace culture
- Collaborate on job descriptions and ideal candidate profiles
- Conduct working interviews for temp-to-hire openings
- Provide honest feedback on workers so agency can adjust
- Convert top temp talent to permanent roles
Job Seekers
- Discuss your skills, interests, goals, and deal breakers
- Be open and honest about experience and qualifications
- Check in regularly with recruiter about fit and feedback
- Bring passion, positivity, and professionalism to interviews
- Ask smart questions to evaluate company culture fit
Proactive communication enables recruiters to match you with the best opportunities.
Key Takeaways on Using Staffing Agencies
- Staffing agencies quickly connect top talent to employers
- Recruiters screen, interview, and handle hiring paperwork
- Major perks for employers include faster hiring, specialized skills, and flexibility
- Candidates benefit from access to openings plus career guidance
- Choose staffing firms with expertise in your industry and needs
- Temp agencies offer full services; job boards only provide listings
- Fully leverage your staffing partnership through clear communication
Next time you need talent or job search assistance, contact professional recruiters to save time and stress. With the right staffing agency match, you gain a trusted partner supporting hiring and career goals.
How much does a staffing agency charge?
Staffing agencies typically charge 25% to 100% of the hired employee’s wages. So, for example, if you and the staffing agency have agreed on a markup of 50% and the new employee earns an hourly wage of $10, you will pay the agency $15 per hour for their work.
In addition to the markup you’ll pay, you may be expected to cover additional fees for filling the position or contract buyout fees if you hire a temporary worker permanently.
What is the staffing agency process?
Finding qualified talent remains challenging for many small companies. In fact, according to ManpowerGroup’s research, 69% of global employers – a 15-year record high – are struggling to find workers with the right mix of technical, soft and personal skills. A staffing agency can help your business overcome that challenge.
When you need new staff and choose to work with a staffing agency, the process typically goes as follows.
- The employer contacts the staffing agency. First, you’ll reach out to a staffing agency that specializes in your industry, specifying information like the job responsibilities, the number of workers needed, the timeline to hire new workers, and the hourly wage or salary.
- The agency creates the job description. The staffing agency then writes a job description and advertises it for your business. It might also reach out to a potential candidate individually if there is someone who is a good fit for the job.
- The agency vets candidates. Once candidates begin applying for the open position, the staffing agency reviews their experience and qualifications before scheduling and conducting interviews. They then choose the most qualified individuals to introduce to the hiring manager at your business.
- The employer makes the final decision. The hiring manager or business owner can interview the staffing agency’s top candidates before making a final hiring decision. This saves you and your staff hours that you would otherwise spend sorting through countless applicants.
- The agency takes care of the paperwork. Most staffing agencies handle all the paperwork associated with new hires, like contracts, taxes and other payroll tasks.
Small Business 101: Episode 16 – Benefits Of Using A Recruitment Agency
Why should you use a staffing agency?
The hiring process can be extensive, but staffing agencies provide services that can help businesses alleviate the time and expense it requires to find qualified employees. Companies often hire through staffing agencies to fill temporary needs, expand their candidate search or expedite the hiring process for human resources.
Should you hire a staffing agency?
If you’re overwhelmed at the prospect of hiring new employees, you might be considering using a staffing agency for support. Staffing agencies provide recruitment and employment services to companies of all kinds. Working with a staffing agency can help you save time and score great talent—but not all agencies are created equal.
What is a staffing agency?
A staffing agency is a business that provides qualified employees for businesses. As agency clients, companies can hire associates on a temporary, part-time or full-time basis depending on the job vacancies they need to fill. Here is how a staffing agency works:
Why should you use a staffing solution agency?
The agency can contact headhunters and other recruiters to locate the people you need if they don’t have enough candidates for you on their lists. Using a staffing solution agency may seem easy. These agencies are specialists and know how to hire employees that will fit your needs.
