Companies turn to staffing agencies when they need assistance filling positions or want to outsource HR responsibilities. According to the SIA’s staffing industry forecast, they predict that staffing revenue will reach $134.7 billion in 2021, representing an 11% increase. As a result, staffing agencies play a vital role in meeting the increasing demand for qualified employees.
Considering using a staffing service?
Services provided by Staffing Agencies
- Direct hire or direct placement: This is for clients who have a long-term need. Direct hire positions are permanent, usually full-time positions with benefits. A staffing agency is involved in the recruiting and hiring process, but the candidate is on the client’s payroll.
- Contract or temporary hire: Temporary employment typically has a set timeframe, and through all assignments, the candidate is an employee of the staffing firm. These roles provide flexibility for both the candidates and clients.
- Contract-to-hire: This is a hybrid of temporary and direct hire. Clients use this as an opportunity for employees to prove themselves to the company. It gives both the candidate and company a chance to decide if it is a good fit. Contract-to-hire positions are for a predetermined period, and during the contract period, the candidate is an employee of the staffing firm. If a permanent job is offered and accepted, the candidate transitions from the staffing agency’s payroll to the client’s payroll.
Staffing Agencies Save Businesses:
- Time by sourcing candidates, reviewing resumes, conducting interviews, etc.
- Money by reducing the overhead costs of recruiting and hiring in-house and decreasing the time it takes to hire candidates.
- From dealing with the hassle of handling payroll taxes, worker’s compensation, and unemployment benefits.
- From distractions and competing tasks that in-house hiring managers face every day.
- From hiring risks that are associated with bringing on a new team member. Hiring a new team member is a significant investment of time and money; bringing on a temporary team member reduces the risk for employers.
Advantages of Using a Staffing Company
- The vast network of candidates and connections: A staffing agency’s pipeline of qualified candidates is constantly growing. They can also reach into their community of passive candidates. Many staffing agencies also receive referrals from current and previous candidates. A staffing agency’s pipeline can help navigate talent shortages.
- Agencies are adaptable: They know how to recruit for the different industries they specialize in and easily navigate the recruiting process. If a candidate leaves the position prematurely, an agency can quickly and easily replace them, providing a seamless transition for the company.
- You can “try” a candidate before committing to hiring them: Working with a staffing agency reduces a company’s risk when it comes to hiring new employees. New hire turnover is costly. Partnering with a staffing agency can increase retention rates and decrease turnover costs.
- Handles onboarding and payroll: Staffing agencies handle temporary team member onboarding, payroll taxes, workers’ compensation, and unemployment benefits.
- Industry market knowledge: Using a staffing agency provides employers access to the agency’s understanding of active and passive candidates, local market trends, and salary ranges. Professional staffing agencies have worked with various operations and numerous industries, providing them with insight to help you identify and achieve your workforce goals.
When should you use a staffing agency?
- Hiring urgently: If your business has urgent hiring needs or is growing rapidly, a staffing agency can help fill positions quickly. A successful staffing agency can help you quickly fill positions with qualified candidates. Their optimized hiring process places candidates faster, which means your new hire will be onboarded and providing value quickly.
- Seasonal work: These positions only need to be filled during part of the year or need an increased number of employees during a specific period. A staffing agency can get you the employees you need for the period that you need them.
- Looking for specific skill sets: If you are looking to fill a position requiring a particular skill set, a staffing agency can pre-screen, interview, and find qualified candidates.
- Time restrictions: Filling a position can be a lengthy process (placing ads, reviewing resumes, interviewing, calling references). Partnering with a staffing agency allows you to focus on your business and the agency to focus on the recruiting and hiring process.
- Reduce overhead costs: An HR department is costly to fund; staff, space, recruitment, and hiring costs. A staffing agency can significantly reduce the costs when it comes to the hiring process. Temporary employees are also not accompanied by the overhead costs associated with permanent employees, elevating the employer’s overhead costs.
Experience Hiring Ease
Using a staffing service has many benefits for companies facing urgent hiring needs, seasonal positions, the need for specific skills, time restrictions, and tight budgets. A staffing agency can save your company time and money and reduce hassle, distractions, and risks. In addition, these agencies can provide services for both recruiting and HR outsourcing, making the hiring process easy.
Headway Workforce Solutions is a leading B2B (Business to Business) provider of workforce solutions with an array of contract-based integrated services and national staffing solutions.
Our managed services approach provides substantial operating performance improvements and cost savings over traditional staffing for industries with complex, recurring, multi-location human capital needs.
Over the past five years, Headway has provided services to over 500 discrete companies, primarily in the retail, financial services, survey research, and marketing and scientific research sectors.