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Staffing agencies play a critical role in the modern labor market, as both job seekers and employers face numerous challenges in finding the right fit. For businesses, the process of recruiting skilled workers can be time-consuming and costly, while job hunters often struggle to navigate through an overwhelming number of opportunities.
With 16 million (and growing) temporary employees being hired every year, the use of staffing agencies to help with placements is becoming more prevalent. Businesses are starting to outsource their labor supply to third-parties to allow them to better focus on their core revenue-driving activities. In this article, we’ll take a look at the benefits companies gain from outsourcing their labor needs to a staffing partner.
Also known as an employment agency or recruiting firm, a staffing agency is a company that matches employers with job seekers. A staffing agency is typically composed of human resources (HR) and staffing professionals, who serve a valuable role in placing the right workers in the right positions. Working with a staffing agency involves a series of steps for both employers and job seekers to provide the best experience for everyone involved.
Partnering with a staffing agency helps streamline the hiring process, saving businesses time and resources while ensuring access to top talent. Staffing agencies take a structured approach to match employers with the right candidates, tailoring their services to meet specific business needs. Their expertise ensures that employers find candidates who not only meet the technical qualifications but also align with the company’s culture and values. Here’s a detailed look at the steps involved:
Initial Consultation: The staffing agency meets with the business to understand their specific needs, including the type of positions to be filled, required skills, desired experience levels, company culture, and other relevant details.
Job Description: The agency helps create or refine the job description to attract the right candidates.
Candidate Sourcing: The agency taps into its network to find suitable candidates. This may involve searching their applicant tracking system (ATS), posting job listings, and leveraging professional networks.
Screening and Vetting: Candidates are thoroughly screened, which may include background checks, skills assessments, and interviews to ensure they meet the business’s criteria.
Candidate Presentation: The agency presents a shortlist of vetted candidates to the employer.
Employer Interviews: The employer in some cases may conduct final interviews with the selected candidates.
Placement: The selected candidates are given an offer by the employer.
Onboarding: The staffing agency may assist with the onboarding process, ensuring a smooth transition for the new hire.
Working with a staffing agency can simplify and accelerate your job search, offering access to opportunities that might not be advertised publicly. Whether you’re looking for temporary, temp-to-hire, or permanent roles, staffing agencies guide you through the process, providing personalized support at every step. Their goal is to match you with a position that aligns with your skills, experience, and career aspirations. Here’s how the process typically works:
Registration: The job seeker registers with the staffing agency, often providing a resume and filling out an application form.
Initial Interview: The agency conducts an interview with the job seeker to better understand their skills, experience, and career goals.
Skill Assessment: In some cases, the agency may have the individual take assessments to evaluate the relevant skills and competencies required for the position.
Job Matching: The agency matches the job seeker with suitable job openings based on their qualifications and preferences.
Interviews & Feedback: The job seeker may attend interviews with the hiring company arranged by the agency. The agency then provides feedback from the employer and offers support throughout the job search process.
Job Offer and Placement: If selected, the job seeker receives a job offer and starts their new position. Some agencies even continue to provide support past the onboarding period in case they need any additional support.
Staffing agencies provide businesses with more than just quick placements; they offer a wide range of different staffing options and support services that support both employers and employees:
Temporary Staffing: Filling temporary positions is one of the most common services that staffing agencies provide. These positions typically need a fast turn-around time so the agency leverages their wide pool of candidates to select candidates quickly for these positions.
Temp-To-Hire Staffing: In some instances, businesses are looking for an option to see how an employee fits in with their company until they bring them on full-time. That’s why staffing agencies help find individuals that will start as temporary for a certain contract length, where the business will then decide if they would like to offer a full-time position to the employee.
Permanent Placements: For some businesses, they are looking to bring on a permanent full-time employee. While they could do this process in-house, it is typically easier to rely on a staffing partner to have a pool of pre-selected candidates ready to work, saving them more time and resourcing.
On-Site Support: In some scenarios, staffing agencies have representatives on-site at the business’s location to assist with any needs or questions employees might have. This is a great option for businesses that might leverage many temporary employees and need someone dedicated to supporting them.
Executive Search: There are cases where businesses have senior level positions that need to be filled. Staffing agencies can conduct specialized recruitment executive positions, often referred to as headhunting.
Recruitment Process Outsourcing (RPO): For smaller companies, handling recruitment in-house can be a difficult task. Many staffing agencies can take on part or all of a company’s recruitment process, from job postings to onboarding/placement.
Employee Screening and Background Checks: It’s important to make sure you are getting the right individuals for the job. Agencies can assist with conducting thorough background checks, reference checks, and drug testing to ensure candidate suitability.
Skills Testing and Assessment: Evaluating candidates’ skills and competencies using a variety of testing and assessment tools is essential to ensure they can perform the job tasks. Staffing agencies can facilitate these assessments to guarantee the best possible placements.
Job Placement Assistance: Staffing agencies work to match job seekers with suitable job openings tailored to their skills, experience, and career goals. They leverage their industry knowledge and extensive employer networks to identify the best opportunities, ensuring a higher likelihood of successful placements.
Career Counseling: Staffing agencies also offer comprehensive career counseling services to help job seekers navigate their career paths. This includes personalized advice on resume writing, crafting compelling cover letters, and effective job search strategies.
Skills Training and Development: Skills training programs provided by agencies can greatly enhance candidates’ skills and improve their employability. These programs cover a wide range of areas, from technical skills and industry-specific knowledge to soft skills like communication and teamwork.
Flexible Work Options: Because of all the different jobs staffing agencies are looking to fill, they can provide a wide range of work opportunities that cater to different needs and lifestyles. Whether seeking temporary, part-time, freelance, or contract work, job seekers can find roles that offer flexibility and work-life balance.
Nearly 90% of businesses engage with staffing agencies in some capacity. Deciding whether to use outsourced staffing services for your business depends on several factors, including your recruiting preferences, urgency, budget, hiring needs, and in-house capabilities. Many companies find that partnering with a staffing agency is a strategic and cost-effective choice after considering the pros and cons. This decision is often influenced by the lack of resources for in-house recruiting or the belief that the benefits of a recruiting firm outweigh those of handling hiring independently.
Businesses turn to staffing agencies for various reasons, often when they face challenges that require specialized hiring solutions. Below are 5 of the most common scenarios where businesses rely on staffing agencies:
Businesses often turn to staffing agencies as a strategic and budget-friendly solution for meeting their hiring needs. Below are 5 key reasons why staffing agencies are a cost-effective choice:
There are many reasons why businesses may choose to work with a staffing agency instead of hiring individuals in-house. Here are some of the core benefits that businesses receive when deciding to outsource their staffing to a third-party:
When looking for the right staff, having a wide enough candidate pool can help you better evaluate all the different potential fits for your team. This is difficult to facilitate in-house, in contrast to staffing companies that have dedicated systems in place to match job seekers with positions that are right in their skill set. With access to this talent pool, businesses can fill positions quicker and with the right individuals who are committed to the position.
Not all businesses have large HR and recruiting teams that can spend all day looking for the right candidates. By partnering with a staffing agency, they become an extension of your team, providing all their previous knowledge and expertise to ensure that you are finding the right people for your positions.
Staffing positions can be time-consuming and very resource-intensive, with many industries having an average time-to-fill positions of 2-4 weeks. This can be drastically reduced by working with a staffing agency that already understands your needs and what you are looking for in the perfect employee. In addition, by working with a staffing partner, businesses don’t have to spend money on job advertisements, background checks, and initial training, saving resources that can be used for other projects.
Employee turnover can be a serious problem for most positions. If you can’t find the right employees and provide them with the right support, it can be hard to keep individuals in those positions. Staffing agencies mix their expertise in placing the right individuals in the right positions with extensive support resources to keep staff happy and committed to the position they are in.
One major struggle for some industries is the fluctuation of work which requires a rapid increase or decrease in staffing needs. This can be very difficult for businesses to do alone. Luckily, staffing partners are prepared for any volatility you may experience.
When looking for a staffing agency to work with, it’s important to do your due diligence to find the exact agency that is best for your business. You should consider the following when choosing an agency to work with:
To start, you need to clearly define the roles you need to fill, including the required skills, experience, and the type of positions they are, whether it’s temporary, permanent, or contract. This clarity will help in communicating your needs effectively to the staffing agency.
Doing research on the agency’s reputation is crucial to understanding how well of a fit they are for your business. Look at reviews and testimonials from other businesses that have worked with the agency. Google reviews and industry-specific forums can provide valuable insights. You can also ask the agency for references and speak directly to their past clients to get first hand feedback on their experiences.
A well rounded screening and hiring process ensures that you are getting the right individuals for the job. Make sure the staffing partner conducts background checks, skills testing, and does thorough interviews. Working with the staffing agency to understand their criteria for selecting candidates and how they match candidates to job requirements will give you confidence in their ability to find the right employees for you.
Effective communication is key when working with a staffing agency. In some cases, you may need next-day staffing. That’s only possible with a partner who is able to quickly receive your request and find the right individuals for the job. Assess how promptly the agency communicates with you. Also, consider the level of customer support and additional services the agency provides. Additional support may include onboarding assistance and follow-up support for employees.
Before committing to a staffing agency, ensure they provide clear and transparent pricing for their services. Understand their fee structure and any additional costs that might be relevant to your needs. Look for flexible contract terms that can adapt to your business needs, whether you require temporary, temp-to-perm, or permanent staffing solutions.
Staffing agencies are often subject to many different misconceptions that can affect how businesses perceive their value. Here are some of the most common misconceptions and the actual truth behind them.
Staffing agencies only focus on filling positions quickly: Staffing partners aim to fill positions efficiently, but the most important factor is to prioritize finding the right fit for both the company and the candidate. The main goal is to ensure success between both parties, leading to low turnover rates and increased satisfaction.
The quality of candidates from staffing partners is lower than if staffed in-house: A major advantage that staffing agencies possess that most businesses don’t, is access to a vast pool of candidates that are already qualified and often have specialized knowledge in specific industries. In addition to that, they conduct thorough screenings, interviews, and background checks to ensure the candidate aligns with your goals and needs.
Workers staffed through an agency are less committed: Most workers placed from staffing agencies are highly motivated and committed to their roles, often using temporary assignments as a stepping stone to permanent employment. These individuals may have barriers to entry and need the help of a reliable staffing partner.
Using a staffing agency is too expensive: While there are costs associated with using a staffing agency, these are almost always offset by the savings in time, resources, and potential turnover costs. Staffing partners help businesses streamline their hiring process, reduce the burden on internal HR departments, and help lead to better hiring decisions.
At Staffing By Starboard, we are committed and excited to take on all your staffing challenges. We are experts at connecting employers with employees the right way. Too often, there are disconnects between staff and the employer which lead to high turnover rate and both parties feeling unsatisfied. We are focused on reimagining the way staffing agencies work, ensuring that the position is the right fit for the employee and that the employee is the right fit for the position.
Staffing agencies typically charge employers a fee based on a percentage of the employee’s hourly wage or annual salary, depending on the type of placement (temporary, temp-to-hire, or direct hire). This fee can range from 25% to 50% of the employee’s pay, depending on factors like the industry, position level, and the services provided by the agency. These fees cover recruiting, screening, and administrative costs.
Staffing agencies are highly effective for temporary or seasonal hiring. They can quickly provide pre-screened candidates to meet short-term demands, ensuring your operations run smoothly during peak periods without the hassle of recruiting and onboarding temporary staff yourself.
Most staffing agencies offer guarantees or replacement policies if a candidate doesn’t work out. They will work with you to find a better match, minimizing disruption and ensuring you get the talent you need to succeed.
Working through a staffing agency means you are employed by the agency but placed in roles with different companies based on your skills and preferences. The agency handles job placement, payroll, and benefits while helping you find positions whether it’s temporary, temp-to-hire, or permanent. It’s a great way to explore various opportunities without the hassle of job hunting on your own.
No, reputable staffing agencies do not charge job seekers for their services. The company hiring through the agency pays the agency’s fees, so you can take advantage of their job placement services at no cost to you.
Getting a job through a staffing agency can be a great option, especially if you’re looking for flexibility, trying to gain experience in a new field, or seeking opportunities quickly. Staffing agencies often have access to a wide range of roles and can match you with jobs that fit your skills, preferences, and career goals.
The time it might take for a staffing agency to find you the right job varies. Some agencies, like Staffing By Starboard, can offer next-day opportunities for quick placement. For more specialized positions, it might take staffing partners a few days or weeks to match you with the exact role, pay, and benefits that align with your needs and goals.
Many local chambers of commerce and industry-specific groups maintain directories or partnerships with staffing agencies that specialize in your region or sector.
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