Finding qualified talent to fill open positions remains a challenge for new and small businesses. Before the onset of Covid-19, the labor market was extremely tight. With the threat of the pandemic in the air, many workers now prefer unemployment to the possibility of contracting the disease.
With the current combination of factors, you might find yourself looking at staffing agencies as a fix. How do staffing agencies work, though? What advantages do you get from working one?
Keep reading for a quick breakdown that answers these questions.
How Do Staffing Agencies Work?
A staffing agency specializes in the hiring process, usually with a focus on one or two industry segments. They recruit, vet, and interview people with specific experience and training. You can see an example of an agency on this page.
The agency then pairs these employees with businesses that need someone who fits that profile. Sometimes, the agency remains the employer and subcontracts staff out. In other cases, the agency provides candidates for open positions.
Both scenarios provide several advantages covered below.
1. Speed
Hiring new employees is a slow process. You must advertise the position, review applications/resumes, and conduct the interviews. This process can take weeks or even months.
A staffing agency excels at this process if they need to do it at all. Many agencies will simply call someone from their database who already fits your needs.
2. Candidate Quality
Staffing agencies typically provide higher-quality candidates than an openly advertised position. They typically only send people who tick all of the boxes for your open position, rather than candidates who may only tick half the boxes.
3. Safety Net
A good staffing agency will provide performance guarantees. If someone they send quits before the six-month mark, for example, they’ll often provide a replacement at no cost.
4. Reduced Costs
It’s often cheaper to hire a staffing agency to fill a position than do it yourself after you consider the advertising, background checks, and drug testing. If the agency remains the employer of record, you also avoid the costs of benefits and payroll management.
5. Lower Turnover
If you engage a staffing agency for temp-to-hire employees, you can also reduce turnover. You get a chance to see the employee in action and evaluate culture fit before you commit to a job offer. That means you get more employees who will likely stay for a few years.
Staffing Agencies Make Life Easier for Some Businesses
Now you can stop asking yourself “how do staffing agencies work?”. Now that you understand how staffing agencies work and the advantages they provide, you can see how one can make your life easier.
You avoid most of the hassles of the hiring process. You get better candidates. You can even enjoy a try-before-you-buy situation with a temp-to-hire position.
This leaves you in a position where you can hire better candidates who won’t flake out and quit after three months. Looking for more advice or news about business. Take a look at the business section of this site.
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It’s great that you pointed out how staffing agencies typically provide higher-quality candidates than an openly advertised position. I was listening to an online business class yesterday and I heard about the usefulness of an employment agency. Recruiting new employees is definitely difficult, so I could see the perks of asking for some assistance from an agency.