Why do companies hire staffing agencies? Can’t they hire their own people? There are plenty of reasons why the staffing industry has been steadily going since the 1940s! Here’s the most popular reasons why:
Save on Training, Time, and Overhead Costs
Training a new employee takes time and money, because it’s not just the time and money spent training the new person, but also having a current employee train the new one. When companies hire staffing agencies, they allow their current staff to continue doing their jobs without interruptions, and allows companies to hire people who are already trained and ready to go. No matter how efficient the current employees are, it’s still taking time out of their day to have them find, screen, interview, hire, and train any new people.
Staffing Agencies Handle Onboarding and Payroll
One common reason why companies hire staffing agencies is that the staffing agency takes care of the contractor’s onboarding paperwork, payroll taxes, worker’s compensation, and unemployment.
Staffing agencies also cover the other costs of hiring, including pre-employment screening, background checks, and drug screening. Since staffing agencies have people specially trained to deal with these situations on a daily basis, they are more efficient than most human resources departments.
Industry Market Knowledge
Along with the other benefits, staffing agencies and their recruiters are able to share their insider information on the industry market. That can include the going salary ranges, amount of both passive and active skilled jobseekers on the market, and local market trends. This information is beneficial for both staffing agencies and their clients, which is why this information is collected on a regular basis.
Try Out a New Employee Before Hiring
Interviews don’t usually give the full picture of who a person is and if they will work out long term. Hiring a permanent employee is expensive and replacing them is doubly so. Companies hire staffing agencies to get around that issue by trying someone out for an amount of time. Using a staffing agency gives companies the option to “test out” a new employee, making sure that they are able to do the work and fit into the company culture. Letting someone go does remove a problem employee, but then there is a job opening all over again that needs to be filled.
Using a staffing agency gives both employer and employee the option to part ways amicably or to make it permanent. If it’s not a good fit for the employee, it doesn’t hurt their job history as the contract simply came to an end. The employer can decide what skills or traits they may need to focus on next time so the recruiters can find someone more suitable. Naturally, there is also the option to allow the company to hire the employee permanently, which is the ideal solution for everyone.
As you can imagine, staffing agencies have more experience hiring people than your usual human resources department because that’s all people at staffing agencies do. Unlike an HR department that’s only in touch with one kind of person, staffing agencies are meeting with people from different industries, different companies, and keeping a closer eye on their client’s competitors than most HR departments have time for.
Hire for Short Term Project
Not all projects require long term employees, so it doesn’t make sense to hire people the traditional way. If the work is only going to be for a certain amount of months, why employ people for a year? That’s another reason why companies hire staffing agencies is for short term projects. Contracts such as filling maternity leave or short-term disability leave aren’t uncommon. Perhaps the work is only for the one project and when it’s done, there isn’t any more. Hiring through a staffing agency allows everyone involved to have the most seamless assistance possible.
If you need a quick fill for your company or need a job fast, then check out a staffing agency! Find out more information here, as either a potential employee or a potential client: