Bringing in a new employee is a costly, time-consuming process that can easily be made worse with a bad hire. Take it from the U.S. Bureau of Labor Statistics, for example: the average direct cost for hiring a new team member is about $58,000 including basic wages, benefits and taxes. Now add on recruiting, advertising costs, screening and testing, and this number can easily skyrocket. Luckily, working with a staffing agency may be just the economical solution your company needs.
Do the fees associated with staffing experts sometimes dissuade smaller companies? Sure—the unknown can be scary. But the reality is, working with staffing experts can be a much more cost-effective solution, helping to pinpoint the right hire in less time and limiting the consequences of a rushed decision. Still not convinced? Let’s take a look at the benefits of utilizing a staffing agency versus in-house recruitment:
Attracting the Right Talent
Technology is in a constant state of flux, so it’s no surprise that new job positions are emerging. With this being the new norm, it can be difficult to find the right employees to fit your unique business needs. Staffing agencies’ level of expertise oftentimes outshines a company’s human resource department because they are designed to help you find the right talent; on the other hand, an internal department must juggle other administrative responsibilities outside of recruitment. Additionally, hiring internal recruiters and employment specialists is often a time-consuming process in its own right. Staffing agencies typically compete with the best recruiters and employment specialists—but at a lower cost and with an emphasis on quicker turnarounds.
What’s particularly important in this evolving business landscape are staffing industries that specialize in certain industries, such as information technology. Specialized staffing agencies have unrivaled industry expertise and know where to look to fill specific gaps. Their specialized field knowledge ensures that companies not only get the right employee the first time, but also find a candidate who can get the job done quicker and more accurately than an in-house or generalized staffing agency hire.
Tapping Into the Right Network
When a job position first opens, human resources departments often struggle with figuring out where to start looking for prospective hires. Then, even as the search process begins and they discover potential fits, it’s still a challenge to figure out these individuals’ work ethics, capabilities and desired schedules.
Working with a staffing agency gives your company a larger network of available workers than many in-house recruitment teams. Specifically, employers searching for seasonal or contract-based workers have to advertise, interview and manage new hires that will only be there for a short period of time. On the other hand, staffing agencies have built relationships with a large network of qualified workers—ranging from temporary to full-time—who are ready to fill a job opening in a matter of days, making it easier to tap into the right network with the candidates you need.
Investing In & Retaining the Right Employees
When bringing a new hire into your company, there’s always the question of whether or not the employee will perform to your standards or mesh well with company culture. Investing in a candidate can be risky; and if it doesn’t work out, it has a hefty price. Teaming up with agencies to hire temporary and contract employees lowers costs related to background investigations, drug screening and skill testing, providing you with top tier talent at great savings. Additionally, staffing agencies not only work diligently to find the right talent, but also retaining them—their focus is to help you find long-term solutions for your staffing gaps.
Companies that use staffing agencies for temporary employees also have specific benefits, such as being able to watch the employee’s performance and habits before potentially offering them a permanent job. This reduces turnover because once the temp position is over, the employee and the employer can decide if the job is a good fit, ultimately resulting in lower turnover and training expenses.
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Internal recruiters and staffing agencies both need to harness the same tools and skills: both need to be extraordinary relationship builders, be sufficient sourcers and be able to use basic HR tools. However, working with a staffing agency can allow for your company to find the best possible talent, in less time, for a fraction of the cost. Want to learn more about staffing versus in-house recruitment? Contact TierPM to learn how a staffing solution could work for you.