Employers hire staffing agencies to find applicants for job vacancies on their teams and to assist candidates in finding work opportunities in their chosen sector. The jobs may be full-time or part-time, temporary or permanent, contract-to-hire, or full-time direct hire.
What do staffing agencies do?
Referrals are checked, resumes are screened, applicants are shortlisted, interviews are scheduled, and candidates are placed on-site on behalf of the employer. The applicant is a staffing agency employee who works under the employer’s supervision.
Staffing shortages are unavoidable, no matter how often an organization schedules its workers.
Employees require time off, overtime compensation expenses become prohibitive, a short-term project necessitates additional personnel, an employer has little time to recruit applicants, internal company resources are having difficulty filling a challenging role, and an employer wishes to give an applicant a trial run before making a full-time commitment.
Using a staffing agency to recruit workers allows a company to concentrate on its development, take on additional short-term projects without adding to its long-term headcount, and downsize staff and overhead when the projects are completed.
Benefits of staffing agencies
Reduce overhead costs
Permanent jobs are more expensive than the wage they are paid. Permanent employees must pay for health insurance, 401(k) retirement accounts, sick days, holiday pay, and employer taxes, to name a few expenses.
A company does not pay all of that by using a temporary staffing agency; instead, they pay them for the job they have completed, with no extra overhead costs.
Reduce overtime pay
An employer may use an engineering staffing agency to bring in temporary employees to help break up the workload during busy periods, rather than placing additional demands on current permanent staff.
This prevents them from running out full-time workers and incurring overtime expenses for hourly employees, which is a significant advantage to staffing agencies.
The need for short term staff
Since permanent employees are sick, on maternity leave, have a family emergency, or are taking a leave of absence, an employer can need a temp employee.
Hiring through a temporary staffing agency allows an employer to schedule someone for a specific period to deal with these circumstances.
The ability to hire quickly
An employer will lose an employee and need to find a replacement right away. Thanks to its vast network of applicants, a temp staffing agency can produce skilled talent several times in less than 24 hours.
Industry market knowledge
Another advantage of working with a recruiting agency is that employers gain access to the recruiter’s insider knowledge of qualified active and passive applicants, pay levels, and local industry patterns.
Types of Staffing Services Provided by Staffing Agencies
Contract staffing services
When an employer hires a staffing agency to provide a candidate for a short-term assignment, usually between one month and a year, at an agreed-upon hourly billing rate, this is known as contract staffing or temporary staffing.
The staffing agency is responsible for all expenses associated with contract employees, including but not limited to general liability insurance, unemployment insurance, and health insurance (FICA, FUTA, SUTA, workers compensation, and unemployment insurance).
Contract-to-hire staffing services
An employer and a staffing agency agree to terms for a fixed period of employment until the employer can make a full-time offer to the candidate in a contract-to-hire arrangement.
The employer has some options after the contract term has ended. They have the option of hiring the applicant as a full-time employee, extending the contract if both parties consent, or terminating the contract.
Before making a direct offer, an organization will assess the candidate’s qualifications, work habits, and gauge the candidate’s fit with your particular culture and working climate by working with a technical staffing agency.
Direct hire staffing services
The method of an employer hiring a recruiting agency to meet a long-term need is known as direct hire staffing. The staffing agency recruits the employee, who is then placed with the employer directly. The applicant is entitled to all of the employer’s benefits as a full-time employee.
The recruiting firm is paid a fixed agreed fee based on a percentage of the candidate’s first-year salary at the time of hire.
Contact the recruitment experts at Nummero if you’re searching for staffing agencies.