This post begins a series of articles explaining what staffing companies do, and how to use them. It is intended as a general overview for those without any experience working with a temporary agency. Keep a lookout for follow up articles in the coming months.
Do you know what a staffing agency does? Where do all the temporary employees come from? And what is the point of using an agency? Isn’t it easier (and cheaper) just to find someone on your own?
At its most basic, a staffing agency is a company that connects employers with potential candidates.
Staffing agencies maintain pools of candidates, and no, they are not miraculously created, grown in jars, nor are they kept locked in a cage until someone calls. These candidates are specifically recruited for their abilities and registered with the agency, without charge to the candidate or client. They have been tested for their computer software skills, background checked, and interviewed by a staffing professional for their personalities and “fit” with potential employers. The agency must keep in constant touch with them, as some may get other jobs or have other changes taking them in or out of the pool.
As an employer, you are almost ensured better success working with a staffing agency than finding someone on your own—all the leg work has been done for you, plus you have the option to screen, interview and even “try out” selected candidates. Best of all, these candidates remain the employees of the agency throughout the duration of their employment, and the agency, not the client, is responsible for all associated costs. These costs include the spectrum of employment taxes, unemployment and workers’ comp insurance, any benefits and much of the liability associated with the employment relationship. All of this can add a hefty percentage to the base pay amount.
Staffing agencies offer a variety of services:
- Temporary: Assignments vary in length from several hours to open-ended or multi-year assignments. The agency charges an hourly rate for the cost of the temporary, which includes all associated employment expenses.
- Temp-to-Hire: This option is perfect for the company that needs someone long term, but would like to take them for a “test drive” first. Temp-to-hire means that the staffing agency finds an acceptable candidate, who works for the client as a temporary employee for a set amount of time, after which the company can continue to use them as a temp, or hire them permanently free of charge.
- Direct Hire: Think “head hunters”. Staffing agencies act as a recruiter, finding one or more candidates that match your needs, and providing them to you at either a fixed rate or a set percentage of the employee’s annual salary.
Using a staffing agency can save an employer considerable lost time and wasted effort, because they focus their resources and experience on finding employees with the right background and personality. Using temporary employees is a great solution for companies with a dynamic workload. What could be better than calling in an experienced secretary, graphic designer or salesperson just when you need them most, without any long-term commitments, and even having them show up on short notice?
Owning and running a business is difficult enough without having to worry about all the hiring and firing that comes with being your own HR department. Many times, it might be easier and more cost effective to have someone else do it for you.
