Why use a staffing agency?
Updated: Jun 15
On the company side:
1. Ability to bring on short term help- Staffing agencies have the ability to contract employees out to companies. This is very powerful for the company because after the work is done, a worker and a company can simply part ways. This is very useful for when companies get an upswing in demand.
2. Unemployment claims- When this "upswing in demand" is over and a company met the demand with the "supply", the workers now become an excess cost that the company is taking on. If the company lets the workers go, they will be subject to the unemployment claims that ensue.
3. Benefits- During the contract period between a worker and a company, the company will not have to offer benefits to that worker. With how much money companies spend every year on benefits this is often times a huge bonus for the company.
4. Taxes- Paying taxes can be a tedious time of the year for many companies. When utilizing a staffing agency the company will simply just have to pay the agency and fill out form 1099 at the end of the year. When a company brings an employee on "full time" or "direct" to their internal payroll they often times will be responsible for withholding local tax, state tax, and federal tax. Dealing with this can become very complicated and paying an accounting firm can be very costly. Additionally, if a company somehow messes this tax procedure up, hefty fines can be the result.
5. Speed- Staffing agencies are fast (at least the good ones are). This is important because when a hiring need arises and a company's demand increases, revenue and profit are being missed out on if they are unable to respond with the supply (whatever the supply may be in terms of a product, service, or both).
6. Cost of vacancy- Missing out on revenue and profit leads into a cost of vacancy. Essentially meaning, how much is being lost out on per week, month, or year by not having the position filled. Often times this "cost of vacancy" will be much more than the staffing fees that come along with utilizing different agencies.
7. The skill of recruiting/headhunting- Yes, the ability to target, locate, attract, and screen talent to a certain position is a SKILL. This "skill" can take years and years to develop. Some companies will post an "in demand job" on indeed or ziprecruiter and then question why no one is applying. No one is applying because those specific workers are in high demand and they are already working. A headhunter will "go get" these people.
8. Attract the best talent- This one often goes by the wayside. People make companies and the right person will help a company thrive. The best workers tend to not find themselves "searching" for a job too often. That is why the "passive" candidate is often times needing to be the one targeted.
On the candidate side:
1. Access to a wider variety of opportunity- Very frequently, companies that use staffing
agencies tend to utilize them for every hiring need. This means that they do not take the time to post jobs on indeed, ziprecruiter, monster, etc. This means that working with an agency can be extremely lucrative and one can come across the perfect opportunity that they have been in search of for weeks, months, or even years.
2. Career coaching- Headhunters and recruiters converse with hiring managers and potential hires daily. They see how different circumstances play out and what works and what does not work. They see how people respond to different resume formats, cover letters, educational accolades, and experience. They see both good and bad interviews play out. They UNDERSTAND the market. They know how to save you a TON of time and provide constructive and honest feedback to your experience and resume. THEY CAN HELP COACH YOU!
3. Ability to passively look- When you chat with a headhunter or recruiter, tell them your goals, skills, and interests. They can keep you in mind if they come across a company or position that lines up. Sometimes they can even create a position at a company by simply having a talented candidate at the ready to show a hiring manager or decision maker at the ideal company or in the ideal industry that someone wants to work.
All in all, a staffing agency can provide a ton of value to both the company and the candidate. Please feel free to reach out to see how Snatch RPO can help you.