How to Partner With a Staffing Agency to Grow and Scale

Finding the right candidate is easier said than done.

Wouldn’t it be nice if you could hire someone to find the perfect candidate for you? Well, you can by working with a staffing agency.

It’s common for agencies to use staffing software to source, manage, and track candidates as they go about the hiring process. These tools come in handy by facilitating interactions with the candidate and the client throughout the entire recruitment cycle.

How does a staffing agency work?

If your organization is thinking of using a staffing agency for the first time, it can be unclear how they work. Companies partner with staffing solutions to get assistance hiring for four types of jobs.

1. Temporary: A job opening with a specific start and end date
2. Contract: A position usually for a more specialized role with a certain time frame. Typically, contracts last less than a year.
3. Temp-to-hire: A job opening that will start as temporary, but is being used to help an organization determine if the temp worker is a long-term fit with the team, company culture, and business as a whole
4. Direct hire: A job opening that’s a permanent position. The staffing agency acts solely as a recruiter to fill the role. 

Once the agency meets with an organization to determine the type of role they need filled and whether it’s full- or part-time, they’ll get to work finding the right candidate. If an agency doesn’t have someone in mind, it’s common for them to list the opening on job boards. Once people apply, the agency accepts applications and carries out interviews, just like an in-house human resources representative would.

When they find the right candidate, the individual is hired as an employee of the agency. That individual’s paycheck and benefits are issued directly from the staffing agency. As long as it’s not a temporary employment situation or contract role, the length of the employment depends on the organization.

Benefits of using a staffing agency

Still on the fence about turning to a staffing agency for your hiring needs? Consider these benefits of using one to find the perfect candidate.

Lower overhead costs

It’s easy to forget hiring a permanent full-time employee often costs a pretty penny. Between their healthcare, a 401k retirement plan, sick days, paid time off, and employer taxes, the cost of hiring can sometimes add up to more than their salary. 

When organizations use an agencies for their staffing management needs, they may not have to pay for everything mentioned above. Instead, it may be the agency’s responsibility to provide those benefits. Additionally, the staffing agency will likely take care of onboarding paperwork, workers’ compensation, and unemployment benefits.

Reduce overtime pay

When there’s a vacant role within your organization, chances are other employees are working overtime to close the gaps. Instead of putting this additional demand on your staff, a staffing agency can find and bring in temporary employees to help split up work during exceptionally busy times of the year.

Plus, this helps your current staff avoid feeling burnout from all of their extra responsibilities and potential overtime.

Find short term staff

It’s common for some staffing companies to specialize in short-term, contract, or temporary employees. This is sometimes a better fit for an organization that needs to find temp work due to a permanent employee being sick or dealing with a family emergency.

Utilizing a temporary staffing agency to find a short-term staff member provides the flexibility you need for a short period of time and will improve productivity in the long run.

Access to a larger talent pool

An employment agency that’s been around for years has worked to build a talent pool of qualified candidates through networking with top talent, meeting new candidates daily, and referrals. When an organization partners with such an agency, they also get access to that talent, making it easier to find the person they’re looking for.

Hire for a role fast

On a similar note, because a staffing agency has access to so many qualified candidates, the time it takes for a company to fill an open role is shorter. This can especially come in handy when an organization has an employee quit suddenly and needs a replacement to go through the hiring process immediately. 

Save time on training

Training new employees takes time. And spending a ton of time on training someone may not be worth it if they’re only going to work at your organization for a few months. However, when you use a staffing agency specializing in temporary employees, it’s more likely the individuals will already have the knowledge and skills needed to do the job effectively.  

Try before you buy

Hiring temporary employees gives you a chance to try an employee out before making a permanent offer of employment. It’s common for an organization to use an in-house recruiter to find someone who has the right experience, but doesn’t mesh well with the workplace environment. 

Allowing this individual to work temporarily lets you evaluate how they fit in with the organization and their team before giving them a full-time offer.

Challenges of using a staffing agency

There are very few downsides to working with a staffing agency, but it’s important to be aware of them before going in this direction. The two main challenges are:

• The price tag. Staffing agencies usually charge 25-100% of the hired employee’s wages.
• Lack of loyalty. If your company is only using a staffing agency for temporary hires, the employees may have low morale or a lack of motivation to do well in their role, since they are only at your organization for a limited time.

How to work with a staffing agency

Once you’ve concluded that a staffing agency can help your company grow and scale at the proper pace, you should understand how to work with one – especially when going about it for the first time.

Do some research and find the right company

First, take the time to find a staffing agency specializing in your industry, which will make finding the perfect match easier and faster for both parties. In addition, be sure the agency you go with has a reputation for solid business practices and is reputable within the talent space.

It’s also good to ask whether the agency checks employee references and handles background checks beforehand. 

Be clear about your needs

Once you find a staffing agency you want to partner with, save everyone time and money by being upfront about your staffing needs. Those in the staffing industry want to help your organization grow and find you top talent, but they can’t without a bit of help first.

Communicate the ins and outs of your company, the open roles and job titles, and the type of person you believe would fit with the team. You should also tell the agency details like dress code and working hours.

Don’t ignore the legal side

There may be some legal details to consider, depending on your open positions. For instance, when it comes to temporary or temp-to-hire jobs, the staffing agency acts as the “official” employer for tax purposes.

Maintain a good relationship

There is no one-size-fits-all for staffing agencies and organizations, so it may take some time to find the right one for your company. But when you do, put in the effort to maintain good communication with them. Once they’ve placed someone in an open role, be communicative in an open and honest way about how they’re working out.

You’re hired!

Working with a staffing agency allows your organization to grow and scale at just the right pace. As the answer to your hiring needs, connecting with the right talent can help your company take off and see success.

Once your staff has grown, make sure their performance is up to standards by conducting performance appraisals with all employees.