Why Do Companies Use Temporary Staffing Agencies?
The need for staffing agencies is growing steadily. You might be wondering why this is happening and if it is something you need to consider. Below are the main reasons we’ve been told by people who work for staffing agencies and the situations that you might want to consider similar.
The Top Reasons Companies Choose Recruitment Agencies
The most popular reasons that people provide when they choose to use an agency for staffing are the shortage of skilled workers and the inability of the business to grow as expected.
Direct hiring disadvantages
The addition of a new employee to your payroll is an enormous expense and a risk. It is expensive to hire a new employee, and the cost of losing one is higher as well. When you hire a new employee in your company, you expose yourself to the possibility of hiring a bad employee, causing interruption to your workforce, which could lead to terminations and the training process. Some of these risks can be averted through the use of a staffing agency.
The benefits of using staffing agencies
If you employ a staffing agency, you have the option to “try” the person before you take on the responsibility for their job. They are then an employee of the company, who covers the payroll, workers’ comp, new hire process, and benefits during their temporary period. This lets you concentrate on the essential aspects of on-boarding like orientations and training, which help with the long-term retention of your employees. This also provides businesses with the chance to stop assignments when the employee isn’t a great match. Simply call the agency and they will take over the details, such as finding out that the employee has other jobs.
Industry Talent Shortages
A study was recently conducted, and the results were fascinating. Thirty-eight percent of the companies that were surveyed stated that their greatest challenge is finding qualified employees. Furthermore, 68% identified this as one of their top three concerns.
A large number of people are not pursuing formal education due to the cost, and this is causing a shortage of individuals working in fields that require education beyond the schooling level. A growing number of people are adopting the entrepreneurial or freelance lifestyle and are finding that working for others isn’t a place where they’ll be content. That means fewer people have a look-through at job ads that companies post on their websites, particularly when they aren’t up-and-coming technology companies but traditional occupations.
People who sign with staffing agencies could be from regions that are not in your search area. Candidates would rather work with an agency instead of having to go through a series of interviews that could lead to nothing. They want to be employed and are likely to have the training that is necessary. The issue is that they don’t have a clue where they should begin with their search and aren’t ready to confront the intense competition that the few qualified applications must deal with. The staffing agency is on both sides and connects them.
For a business to grow, it is necessary to have an adequate supply of skilled employees. With a shortage of qualified candidates available, companies are finding it difficult to keep up with competition and grow.
The path to growth is not without ups and downs. A company may have a lot of business at one point, and then experience slow times. It isn’t possible for a company to keep its employees at the same pace during slow times or when losing money, thereby dragging further away from growth. When employees are let go, they are the ones with the highest qualifications who move to other jobs, and the company is left with a shortage of candidates as business picks back up.
However, employing a staffing company to hire will protect both the business and highly skilled employees by ensuring the employees are offered other jobs during times of low business. However, they will also give the employees the chance to work for the company when business starts to pick up. This lets the business keep on its course of growth without having to start from scratch.
When is it a good idea to use a staffing agency?
As with everything hiring agencies do, they aren’t the best solution for every company. However, they are an option that is feasible for the majority of businesses. Here are some points you need to consider when trying to figure out if a professional staffing company can help you take your business to the next stage.
Do you have trouble finding sufficient qualified employees to ensure your company is running at the speed you’d like? If you’re struggling to locate the type of people you need, a staffing company might be the solution.
You have a nebulous need for employees.
If your company is experiencing a sudden demand for additional employees, then you should think about a staffing agency. When employees feel overwhelmed, stressed and exhausted, they don’t perform at their best and your business suffers even more.
Your business is seasonal.
Many companies, including those catering to tourists or employing seasonal workers, do not require employees throughout the year. Others need to increase the number of employees during the holiday season. No matter the nature of your business, if it’s seasonal, employing a full time employee all year round isn’t a good idea. Turning to a staffing agency will get you the employees you need for the time you need them, but not leave you wondering what to do with all those extra hands in the off-season.
You want experts
You understand the frustration that comes from conducting interviews with candidate after candidate and not being able to find the right candidates to fill the vacant positions. It’s either going through the process again or hoping someone responds to your advertisement, which is perfect, or looking into a staffing company. This will increase the pool of applicants significantly, which will increase the chance of finding the ideal candidates.
You’re looking for an employee with a specific skill set.
This is typically the case when you are working on a specific job that needs a particular set of abilities that none of your employees have or aren’t skilled in. The project can be put aside while your staff member receives training, which will likely cause the client to take the project elsewhere. You can employ an individual with the skills, but once the specific project is finished, what should you do with the individual? Another option is to contact an agency that can provide you with an employee to work for a time period during the course of your project. The final option can be a win-win scenario for all parties involved.
You’re concerned about unemployment claims.
If you are forced to lay off employees because there isn’t enough work available, you could be forced to pay unemployment. Unemployment claims submitted by staffing agency employees are the responsibility of the staffing agency. This does not just remove the paperwork off your desk, but it also saves money in the end as your unemployment expenses are at a lower level.
You’d like to test the candidates’ capabilities BEFORE committing.
When you first employ someone, you are sure it’s going to go well, but you aren’t sure. When you work with a company that provides staffing services, you have the opportunity to collaborate with individuals on the basis of a temporary arrangement to determine if they’re compatible with the ideals you’ve set for the job. You determine if their capabilities are as described and whether their character and attitude to work are aligned to what you would expect from employees.
You don’t have the time for the recruiting process.
Finding a job the traditional way takes many hours. It’s necessary to put up advertisements, look through resumes, conduct interviews, and find references. After that, you must go through the process of training. There is a lot on your plate and you might not have the time in the world. A temporary staffing agency can take care of this for you, allowing you to focus on the other aspects of your company.
You need to cut the cost of retraining.
It is a significant amount of money to manage the HR division. In addition to personnel and space, you must also offer benefits and think about things such as insurance. It’s not even starting to think about the cost of hiring and recruitment. Staffing agencies can cut these costs significantly. This is particularly helpful when you’re at an age where your financial resources are scarce.
Staffing agencies allow growth Companies should prioritise growth over staffing.
If your company is growing, it is not something you’d want to do to take your focus off of your company to search for and take on new employees. In reality, when you’re expanding, new employees are needed. However, the right time to find those who can join your team and make them feel welcome isn’t always there. In many instances, there is no way to know what your exact needs will be. You’re aware of what you need in the present, but tomorrow might be different. Employers can recruit the skilled talent that you need, at the time you require them, for the time you require them. This makes the process easier and provides businesses with the flexibility needed to expand.
Don’t just jump in.
Staffing agencies don’t all come equal. Before putting your faith in one particular company, make sure you explore and research various options. Ask people who have used their services. Contact their employees and inquire about their hiring policies. Find out if they are able to deliver what you need consistently. The final quality of the employees they provide you is contingent on the agency’s standards of service.