Most small companies face significant challenges when it comes to hiring the right person for the job. It can be time-consuming when such businesses have to deal with complex hiring processes like reviewing job applications efficiently and effectively, interviewing applicants, and negotiating the paychecks of successful candidates. For this reason, many companies outsource their recruitment process to staffing agencies, saving more time and effort, while getting the best hiring results.
Although, third-party recruitment is not ideal for every business, hiring a recruitment agency can be just what your company needs.
Misconceptions About Staffing Agencies
High Recruitment Cost
Despite the benefits recruiting agencies offer to small and mid-size businesses, many employers do not hire them for the fear of their services being too expensive. To these employers, they could just afford to hire someone on their own than pay more in recruiting fees. Sounds like a great idea. However, in the long run, it is more expensive and stressful than hiring a staffing recruiting agency.
The agency fee is less when compared to hiring costs, employment taxes, social security, payroll, and many more.
Another misconception is that staffing agencies only hire employees that can not be employed elsewhere. This is far-fetched and untrue. It will surprise you to know that most temporary employees have qualifications that exceed their jobs. They take on these jobs for several reasons, among which include:
- Job exploration
- Change in job offers.
It is not uncommon to find employers assuming that staffing recruitment agencies make mind-boggling profits, when they compare the employees’ salaries to the bill rates. This notion is far from being a fact. In the US, the payroll taxes and other compensation premiums are the same for both employers and recruiting agencies.
Benefits Staffing Agencies Provide
Depending on the position and work duration, employers can hire freelance, part-time, temporary, and full-time workers with the help of a recruiter. Here are some of the benefits your business can enjoy from this service:
With candidates not wielding more dominance in the job market, the job recruiting process has now become easier than before. Managers no longer review résumés and conduct interviews due to the vast amount of time they take. To speed up the hiring process, staffing agencies handle screening and selection processes.
Employers strive to achieve more productivity in their businesses. Hence, they only hire employees they need for the job. For that reason, the rate of full-time employment has drastically reduced; lean operations are now considered. Having a dynamic workforce to cater for the ever-changing business flow is a better alternative for most businesses.
Employers no longer have to worry about employment-related factors like insurance coverage, payroll taxes, and myriad labour laws. Certain financial and operation risks are embedded in recruitment. However, those risks can be transferred to a staffing recruitment agency. The recruiter holds the employment record of temporary workers.
Interesting related article: “What is HR (Human Resources)?“