How Small And Mid-Sized Companies Reap The Benefits Of Staffing Agencies
It’s a common misconception among small and mid-sized business owners that staffing agencies are just for providing huge batches of temps to large companies and their services are cost-prohibitive. In fact, working with a staffing agency can be an extremely economical choice for smaller companies, especially companies that don’t have a large, dedicated Human Resources department in-house.
- Recruiting And Onboarding – Advertising, screening, background and reference checking, interviewing, and onboarding employees is a time-consuming process, with significant hard and soft costs associated: Up to 50% of the annual salary, depending upon the level and specialization of the employee. When you work with a staffing agency, those things are all done for you. You can choose to interview the workers the agency sends, or you can simply put them to work and see if they meet your company’s needs. It’s a low-risk proposition for your company because they remain employees of the staffing agency; if you’re not satisfied with their work, you can request someone different with no additional cost.
- Cost Of Employee – When companies hire employees directly, they incur ongoing costs that average about 23% of each employee’s base salary, excluding the one-time expense of recruiting and onboarding. In some cases those costs can soar to 40% or more. These additional costs come from things like Social Security, Medicare, Unemployment tax, benefits like health care and 401(k), and overhead costs for things like Human Resources, timekeeping and payroll, and benefits administration. When you use workers from a staffing agency, all of those costs are paid by the agency.
- Fast And Flexible – If you need workers for a season or a specific project, your staffing agency will send you the people you need when you need them, and when your season or project ends, you can send them off with a handshake and your thanks; your company’s unemployment insurance remains unaffected because they’re not your employees. If you need someone to cover an absence or fill a vacancy on short notice, your staffing agency probably has a suitable candidate already interviewed, evaluated, and on staff, so you’re not left high and dry while you sift through responses to an advertisement. Even if you need a more specialized type of worker, your staffing agency has a deep network that allows them to find and hire the right person quickly, so you can get on with your business.
- Ongoing Support – The staffing agency handles all aspects of employment for the workers they send your company, from timekeeping and payroll to benefits administration. If you experience any issues with one of their workers, the staffing agency will take care of counseling the worker or removing and replacing them, depending upon the situation. Your Human Resources team can stay focused on your in-house employees and their needs.
- Hire With Confidence – After you’ve had a chance to work with any of the staffing agency’s employees, you may decide you’d like to hire them directly, and that’s easy to arrange through the agency. It’s hard to beat the assurance of hiring someone who’s already spent a few months working in your company and demonstrating their value to your team!