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The News God > Blog > Business & Finance > Benefits of using staffing agencies and staffing services
Business & Finance

Benefits of using staffing agencies and staffing services

PAUL CARROLL
Last updated: August 14, 2023 1:00 pm
PAUL CARROLL
August 14, 2023
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Are you facing difficulties in hiring new candidates for your business?

Contents
  • Reduction in overhead costs
  • Reduction of hiring risks, training time, and costs 
  • Increase hiring efficiency 
  • Alleviate inductions and compensations
  • Avoid employee burnout and reduce overtime expenses 
  • Quicker Hiring
  • Provision of short-term staff
  • Access to Extensive Talent Networks
  • Ability to try out employees before full-time commitment
  • Gain insights into industry trends 
  • Temporary hire staffing services
  • Contract-to-hire staffing services
  • Direct employment staffing services

Well, you’re not alone! Benefits of staffing services

Reduction in overhead costs

When onboarding permanent staff, employers must pay for their healthcare, retirement, insurance, and more, along with their basic salaries. By partnering with a staffing agency, employers can remove the burden of all such costs. This is because they now have to pay only for the staffing service provided by the agency, without all the additional expenses.

Reduction of hiring risks, training time, and costs 

Providing training to new employees requires a significant investment of both time and money. And when searching for someone to cover a few months’ worth of work, spending money to train them does not make sense. So by using a temporary staffing agency, employers can find someone who is immediately ready to do the necessary work.

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Furthermore, when the temporary employee’s job gets completed, employers will not have to worry about severance pay, unemployment insurance, or finding a replacement. Not to mention that parting of ways is streamlined and smooth, which is another benefit of using staffing services.

Increase hiring efficiency 

Hiring is usually lengthy and tedious, which often requires a reallocation of time and effort. A staffing agency can provide staffing specialists to help go through all the resumes, check references, handle calls, screen candidates, and set up interviews. This saves employers time and money, allowing them to focus on other, more important aspects of their business. 

Alleviate inductions and compensations

A significant advantage of engaging staffing agencies is that they handle the onboarding documentation, payroll taxes, workers’ compensation, and unemployment benefits for temporary staff.

Avoid employee burnout and reduce overtime expenses 

Instead of overburdening existing staff members with extra work, employers can seek out staffing agencies to bring in temporary workers. This approach helps distribute the workload during busy times and prevents employee burnout. Furthermore, it also reduces overtime payments which can be very significant considering that you’re paying tired employees to do more work. 

Quicker Hiring

When an essential employee abruptly quits their job, quick replacement is crucial for the company or department’s smooth functioning. In such cases, staffing agencies can bring in qualified candidates very quickly (sometimes within 24 hours) due to their extensive candidate network.

Provision of short-term staff

Employers often require temporary employees due to their permanent staff being sick, on maternity leave, having a family emergency, etc. In such cases, staffing agencies can quickly provide temporary staff for a short period to ensure work in the company does not get disrupted.

Access to Extensive Talent Networks

Good staffing agencies will have invested years cultivating a talent network through recommendations, networking, and daily interactions with candidates. As such, staffing agencies are often better suited to find the right candidates more quickly.

Ability to try out employees before full-time commitment

More often than not, assessing a potential employee’s compatibility solely through a CV and an interview is not easy. By initiating employment on a contract basis, both the employer and the employee can have a trial run before opting for a full-time commitment.

Gain insights into industry trends 

Another perk of leveraging a staffing agency is that employers can gain invaluable information regarding employment trends in the industry. This can include the availability of skilled candidates, salary ranges, and more. 

Types of Staffing Services

Below are the different types of staffing services provided by most staffing agencies. 

Temporary hire staffing services

Temporary staffing solutions, often referred to as contract staffing, involve supplying a candidate for fulfilling a brief-term task. The term typically spans from one month to a year at a prearranged hourly billing rate.

Here, the staffing agency assumes responsibility for the expenses linked with temporary personnel, which include general liability insurance, payroll taxes, and other insurance policies. 

Additionally, staffing firms furnish year-end W2 forms and might offer perks such as paid holidays, health/dental/vision insurance coverage, participation in a 401k retirement plan, and annual bonus disbursements.

Contract-to-hire staffing services

In this type of staffing service, an agreement is reached between an employer and a staffing firm regarding a specified duration of employment. Upon the fulfillment of the contract period, the employer can choose to onboard the candidate as a full-time staff member, prolong the contract with mutual consent, or terminate the contract arrangement.

Contract-to-hire staffing allows a company to assess the candidate’s competencies, work ethics, and suitability within the distinct corporate culture and operational setting.

Direct employment staffing services

Direct employment staffing involves an employer enlisting the assistance of a staffing agency to address their extended staffing requirements. The staffing agency takes charge of recruiting the candidate, who is subsequently placed in a direct capacity within the employing company. This arrangement ensures that the candidate enjoys the complete perks of a full-time staff member.

In return for their services, the staffing agency is paid a prearranged and negotiated fee. This fee is usually a percentage of the candidate’s first-year earnings after being hired.

Ready to team up with a staffing agency and enhance your recruitment strategies? Reach out to Charles Mac now!

Recruiting and onboarding new talent involves numerous tedious tasks like resume searching, candidate evaluations, interviews, and inductions – all of which can get very overwhelming. This is why many companies nowadays partner with staffing agencies that can provide professional staffing services. These agencies help companies recruit suitable candidates to fill their job vacancies while also assisting job-seekers in discovering roles based on their skills and wants. 

What do staffing agencies do?

Generally, staffing agencies perform recruitment tasks that unburden companies from the headaches of filling vacancies. This involves checking references, screening resumes, shortlisting candidates, scheduling interviews, and making placements. And for employees placed in a company, the staffing agency also issues the worker’s paycheck and benefits. However, the length of employment is determined by the business. 

So essentially, the staffing agency manages the entire employment process, including pre-employment testing, background investigations, and drug screening. This relieves employers of payroll processing costs and benefits administration costs.

Furthermore, staffing agencies can also provide a variety of employment arrangements, including full-time, part-time, and also temporary and project-based contracts. This is especially beneficial for organizations that need extra employees only for a specific time-bound project or to fill positions for permanent employees on temporary leave. 

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