Table of Contents Hide
- What is a Staffing Agency?
- What are the Fees for a Staffing Agency?
- What Services can a Staffing Agency Provide?
- How Staffing Agency Work
- Most Widespread Misconceptions Regarding Staffing Agencies
- How to Collaborate with a Staffing Agency
- How to get the most out of a Staffing Agency as a Job Seeker
- #1. Select the best specialist staffing agency.
- #2. Register with the agency.
- #3. Take the interview very seriously.
- #4. Determine whether you want part-time or full-time work.
- #5. Begin your employment search.
- #6. Continue to make oneself marketable.
- #7. Respond as soon as possible
- #8. Maintain contact with your recruiter.
- Staffing Agency vs.Temp Agency
- How to Start a Staffing Agency
- What are the Average Start-Up Costs for a New Staffing Agency?
- Best Staffing Agencies
- Staffing Agency FAQ’s
- Is it good to get a job through a staffing agency?
- What are typical staffing agency fees?
- How long can you work for an agency?
From networking and studying job ads to creating resumes and cover letters to interviewing and following up with hiring managers, looking for work may be a full-time job. Many small businesses continue to struggle to find skilled employees. Reviewing applications, interviewing applicants, and negotiating pay all take time away from a business owner’s existing responsibilities, which may wind up damaging the business in the long run. That is why some firms collaborate with staffing agencies, which take much of the time and effort out of the applicant hunt by providing their workers for open positions. But what exactly is a staffing agency, and what does it do for job seekers?
What is a Staffing Agency?
A staffing agency finds individuals for firms that need to fill specific positions. When you require new employees and decide to engage with a staffing agency, the standard procedure is as follows:
- The employer makes contact with a staffing agency. First, you’ll contact an agency that specializes in your business, outlining details such as job responsibilities, the number of employees required, the schedule for hiring new employees, and the wage or salary rate.
- The job description is created by the agency. The agency then creates a job description for your company and advertises it. If the candidate is a good fit for the role, they may also contact the candidate individually.
- Candidates are vetted by the staffing firm: When individuals begin applying for open positions, the staffing agency evaluates their experience and credentials before arranging and conducting interviews. They then select the most qualified candidates to introduce to your company’s recruiting manager. Finding a recruiting company specialized in the field you are hiring for such as executive assistant staffing for C Suite level assistants is the best way to ensure top talent.
- The final choice is made by the employer. Before making a final hiring decision, the hiring manager or business owner will interview the staffing agency’s candidates. This saves you and your employees time that would otherwise be spent going through a large number of applicants.
- The documentation is handled by the agency. Most agencies handle all paperwork related to new hires, such as contracts, taxes, and other payroll obligations.
What are the Fees for a Staffing Agency?
Staffing companies often charge between 25% and 100% of the hired employee’s salary. For example, if you and the staffing agency agree on a 50% markup and the new employee makes $10 per hour, you will pay the agency $15 per hour for their services.
In addition to the markup, you may be required to pay additional costs for filling the position or contract buyout fees if you engage a temporary worker on a long-term basis.
Key takeaway: Businesses can expect to pay a staffing service 25 to 100 percent of the earnings of newly hired employees, as well as extra expenses.
What Services can a Staffing Agency Provide?
Staffing firms have become a crucial resource for sourcing talent quickly and efficiently as employers increasingly resort to part-time, freelance, and temporary workers to cover workforce gaps. The following are just a few of the numerous advantages that the appropriate staffing company may provide for your organization.
#1. Quick hiring
The job market has shifted dramatically in recent years, and the hiring process is now longer and more challenging than in previous years.
“Great talent becomes more difficult to locate, and it becomes highly time-consuming for managers to evaluate résumés and conduct interviews while still being responsible for their day-to-day operations,” said Matthew Rowles, business development manager at staffing firm Kavaliro. “Using a reputable staffing firm can help you save time and money. A staffing service may prescreen and qualify prospects, ensuring that the manager only interviews candidates who are a good fit for the post.”
According to AJ Brustein, CEO and co-founder of on-demand staffing platform Wonolo, many organizations are delaying recruiting for full-time positions for a variety of reasons. However, Brustein believes that an emphasis on leaner operations has a lot to do with it.
“Companies are aiming to be more efficient by having people just when they are necessary,” Brustein told Business News Daily. “They must develop strategies to ensure that every dollar spent benefits the company. Using temp staffing allows businesses to have workers only when they need them, and those people are productive.”
According to Jason Leverant, chief operating officer of global staffing franchise AtWork Group, companies have realized the value of having a fluid workforce that can be dynamically altered to match their ongoing employment needs.
“The flexibility of employing a staffing agency became the key motivator in the effort to bring on a workforce that can change with the ebb and flow of a client’s business demands,” Leverant explained.
#3. Risk reduction
Being an employer entails a slew of legal obligations, such as paying certain taxes, providing insurance coverage, and adhering to labor rules. Hiring staff entails significant risks from both a financial and operational side, especially if someone has to be fired or unexpectedly leaves. When you hire a staffing firm, the agency assumes many of these risks on your behalf.
“Staffing firms are generally considered the employer of record when it comes to the temporary associates that are placed,” Leverant explained. “[Staffing firm clients] appreciate the fact that, for the most part, the staffing firm retains full responsibility for the employees while they are on assignment.”
How Staffing Agency Work
Author Amy White outlined the major types of jobs that staffing agencies help companies fill in a blog post on Snagajob: temporary (a job with a set start and end date), temp to hire (a job that is initially temporary but is used to help an employer determine the temp worker’s long-term fit with the company), and direct hire (a permanent position in which the staffing agency acts as a recruiter).
White also described the mechanism through which staffing firms fill positions. So, if the agency does not already have an employee who is a good fit for an available position, it will normally post the position on job boards and other locations where job searchers are likely to look. From there, it will take applications, conduct interviews, and, if necessary, a background check, just like any other company. When the ideal candidate is identified, he or she is hired as an employee of the agency (except in the case of direct-hire positions). The staffing agency issues the worker’s payment and benefits if any are provided. However, the period of employment is chosen by the client, according to White.
Alternatively, you can join up for on-demand hiring platforms such as Upwork, Freelancer.com, and Wonolo, which provide you with access to independent workers who are ready to work, typically remotely.
Staffing firms assist in filling temporary, temp-to-hire, and direct-hire positions by pairing existing employees who are well suited for the role or advertising the opportunity for qualified job searchers to see.
Most Widespread Misconceptions Regarding Staffing Agencies
One of the most common misconceptions about employing a staffing agency is that it is too costly to be worthwhile. Why pay additional fees for recruiting when you can hire someone yourself? Although you may believe you are saving money in the short term, employing staffing agencies may save your organization money in the long run.
“Many businesses will simply look at the agency’s fees to estimate the cost, but they frequently fail to recognize the value and savings they may give as well,” Rowles added. “When it comes to how much an open post might cost a company, time to hire is an essential consideration. The longer a post is open, the higher the cost, due to lost production and resource diversion. Working with a staffing firm can assist reduce the time it takes to hire and the loss of production.”
“Our clients see the base pay rates they pay their staff, and then they see our bill rates, and they feel we’re profiting on the difference,” Leverant explained. “Many people forget that we pay the same payroll taxes, unemployment insurance, and workers’ compensation premiums as all companies in the United States.”
The caliber of their employees is another prevalent misconception regarding staffing agencies. Some businesses may feel that employees who arrive through staffing agencies are only there because they couldn’t find work elsewhere. That isn’t always the case; in fact, temporary workers are frequently overqualified for the positions they do, according to Brustein.
How to Collaborate with a Staffing Agency
Are you ready to hire a staffing agency? Find the ideal one and, with the help of our specialists, start a wonderful professional relationship.
#1. Locate the best firm.
Before you can discover exceptional personnel, you must first select the correct staffing organization for your company. Leverant stressed the need of selecting a company with a solid reputation for adhering to ethical business standards.
“Make certain that you’re working with a respectable organization that takes pride in the people it sends,” he advised. “This includes ensuring that their staff has all of the necessary credentials confirmed, including, but not limited to, reference checks.” You should also ensure that they have the necessary insurances, such as general liability and workers’ compensation.”
A staffing firm, like any other business partnership, must give value to you to be worth the investment.
“Sit down with a staffing business and honestly determine whether they can provide value to your organization,” Rowles advised. “As a small business, each employee’s importance and the expense of recruiting are magnified, therefore… select a firm that sees [your organization] as a business partner, not just a client.”
Similarly, if you opt to use an on-demand staffing platform rather than a typical staffing firm, read reviews and ensure the site is trusted by other business owners and employees before signing up or making any payments.
#2. Make a list of your requirements.
Good staffing firms want to assist you in finding the greatest employees for your company, and they won’t be able to do so if you don’t communicate clearly and completely about your company, your position, and the type of person you want for the job. Aside from explaining the fundamental responsibilities and required abilities for the job, specify any business standards (dress code, hours, breaks, etc.) to offer the staffing firm representative an idea of your corporate culture and the type of professional who would thrive there.
“Let the recruiter know when you believe you’ve clearly stated your needs,” the author added. “He or she will start the hunt right away.”
#3. Examine the legal implications.
Check those employment-related legal elements, such as worker classification and payroll taxes, are taken care of, depending on the types of positions that a staffing business will assist you in filling. The staffing firm is the official employer for tax purposes for temporary and temp-to-hire employment, thus the agency should clarify that the personnel you use are, in fact, employees and not independent contractors, according to Leverant.
“Additionally, you should evaluate the contracts in place to ensure that there are sufficient indemnification provisions in place, preferably a ‘dual indemnification’ clause, which covers both parties from concerns that may emerge,” Leverant advised.
#4. Maintain a positive relationship.
Finding the appropriate staffing company for your company may need some trial and error, but once you’ve discovered one that provides high-quality service and well-qualified individuals, stick with it. Furthermore, discussing new hires with your agency representative might benefit both you and the organization in future personnel searches.
“Whether you use on-demand staffing solutions for unpredictable needs or traditional staffing solutions for known needs, make sure you have staffing agencies that have proved to be reliable so you can focus on expanding your business.”
How to get the most out of a Staffing Agency as a Job Seeker
So, how do staffing firms assist you in achieving your employment objectives? Here are eight job-seeker ideas on what you should do.
#1. Select the best specialist staffing agency.
Every staffing agency is not the same. Spend some time learning about them before investing in the connection. Check that it is equipped to assist someone with your professional profile and aspirations. Determine whether it is a broad staffing firm or one that focuses on certain industries.
Will you have to pay any costs if you are hired? That is determined by the staffing agency.
#2. Register with the agency.
In most cases, you’ll start by submitting your resume and a cover letter to a staffing agency. Once the agency has reviewed and accepted your documents, you may be requested to participate in skills testing and an interview with one of their recruitment professionals to learn more about you. They can then assist you with improving your résumé, preparing for interviews, and sharing local hiring trends.
#3. Take the interview very seriously.
Approach the interview with a staffing manager in the same way you would any other job interview with a potential employer. The staffing agency’s purpose is not to question you, but to obtain a solid idea of the opportunities that are a good fit for you.
Even if you’re connected remotely, make sure you’re properly attired, groomed, and prepared. You should be prepared to discuss your employment history, work habits, career goals, and workplace culture preferences. If the staffing agency is considering you for a position at a particular company, do some research on the organization so you can ask pertinent questions.
#4. Determine whether you want part-time or full-time work.
Staffing services are frequently used by employers to recruit people for temporary or project-based work. Others are seeking full-time workers. Furthermore, there is an increasing trend toward temporary-to-full-time roles. For many individuals, this is the best of all worlds because it allows both the company and the candidate to get to know one other before making a longer-term commitment.
Determine whether you desire a short-term, long-term, or temporary-to-permanent job. This will benefit all parties involved, including you, the recruiter, and the hiring business.
#5. Begin your employment search.
Following your interview, the recruiters will be able to represent you with more than just your résumé. They will have a comprehensive understanding of your hard capabilities, soft skills (particularly communication skills), short-term work objectives, and long-term career aspirations.
So far, the procedure appears to be similar to applying for a job – and it is. However, after the agency has concluded that you are a suitable candidate for placement, it will use its relationships in your field to search for open positions that match your credentials and preferences. Well-connected recruiters may have extensive industry relationships as well as knowledge of unadvertised employment positions.
#6. Continue to make oneself marketable.
While you’re waiting for a response, take advantage of the professional development and training possibilities provided by the leading staffing firms. It’s a terrific method to boost your job prospects and stand out to potential employers. For example, Robert Half offers over 8,000 courses and online reference resources, as well as free continuing professional education and program credits.
#7. Respond as soon as possible
If your agency contacts you about an open position, don’t be afraid to respond right away. Many jobs need to be filled right away, and you don’t want to pass up a good opportunity. When your recruiter finds a prospective match, they will usually set up an interview for you with their client to see whether it’s a good fit.
Some staffing firms will assist you in negotiating wages and other parameters of the contract. They may even handle all of the necessary paperwork for you, so all you have to do is show up for your new job.
#8. Maintain contact with your recruiter.
If you aren’t obtaining interviews, talk to your agency representative about what you can do to increase your prospects. Keep your recruiter updated if you’ve been successful in obtaining interviews on your own. The staffing agency may have contacts at the organization that can assist you in obtaining the position.
You must stay on top of the job search process and maintain regular communication with your recruiters. While the agency will alert you when a potential position becomes available, it’s fine to contact your recruiter once per week or two.
Staffing Agency vs.Temp Agency
Staffing and temp agencies are both parts of a rapidly expanding business that employs over 16 million people each year.
Both types of agencies provide labor in a variety of industries, including manufacturing, clerical, and healthcare. Because of their broad reach, many job searchers have most likely come across a staffing or temp agency at some point during their job search.
Differences Between Staffing and Temp Agency
In a nutshell, both organizations assist people in finding work. As a result, they frequently appear interchangeable.
However, while the services provided by temp and staffing companies occasionally overlap, the opportunities they present are very distinct.
We’ll assist you to figure out what makes them unique.
The following are the distinctions between staffing and temp agencies:
#1. Temporary vs. Long-Term Employment
Temporary workers are hired via temp agencies. They provide short-term projects that typically last one day to one week. It is not uncommon for employees to be transferred to multiple employment sites daily. Candidates are frequently hired for tasks involving special projects, seasonal assignments, or same-day employment.
Temp agencies typically aim to fill a company’s immediate requirements. They primarily deal with manufacturing or warehouse organizations that want extra labor for a short period, such as during the holiday season. The majority of the jobs offered by temp agencies are entry-level and light industrial.
A staffing agency provides temporary labor as well. However, unlike a temp agency, they provide a considerably broader selection of opportunities, including lengthier postings. Temporary, temp-to-hire, contract, and direct-hire positions are all possible.
- Temporary: Temporary positions are typically relatively short-term. They are often entry-level and light industrial.
- Temp-to-hire: These roles include a trial period, which often lasts 90 days, during which employees and employers decide if the job is a good fit.
- Contract: Contract employment are typically more specialized responsibilities that last for a set period of time. It varies, but they usually endure less than a year.
- Direct-Hire: In these opportunities, the job seeker is employed immediately by the employer for a permanent employment.
Staffing firms offer a wide range of career opportunities. They serve a diverse range of industries, including administrative, light industrial, engineering, technical, and management. Even their shorter jobs have the potential to be extended or grow into long-term careers.
#2. Right Fit vs. Immediate Employment
Clients of temporary staffing companies have an urgent need to fill available positions. It is less about the ‘perfect fit’ and more about the ‘right now for them.
Because temp agencies need to place individuals quickly, their interview processes are typically brief and cursory. They want to make sure you’re capable of doing the work, but their purpose isn’t to place you in a position that’s a great fit for your skills.
While a temp agency will find you employment quickly, it is unlikely to be the job of your dreams – and it is unlikely to lead to a long-term career.
Staffing agencies place a greater emphasis on the qualifications of the candidate. Jobs do not come in one size fits all.
Employers who partner with staffing agencies want individuals who are not only competent for the position but also have the potential to stay and grow with the firm.
As a result, the interview process with a staffing agency is typically longer and more in-depth. They will ask specific questions about your experience to ensure that they have a strong understanding of what you offer to the table. Their goal is to place you in a position where you will be a good fit.
Overall, staffing agencies are concerned with ensuring a good fit for both the company and the candidate to meet both parties’ long-term needs.
Which is the best option for you?
It is conditional.
Depending on your requirements, both staffing and temp agencies may be useful job search partners. The trick is to thoroughly understand what each of them has to offer. Then, make certain that you select the type of agency that is compatible with your requirements.
Working with a Temp Agency is a good option if:
- You require emergency assistance.
- You require money quickly and are willing to work any form of employment.
- You’d like to “test-drive” an industry.
- You want to gain experience as soon as possible.
- You’re attempting to fill employment voids.
Use a Staffing Agency if you want to:
- Finding the correct fit is important to you.
- You want to be able to take on a wider range of roles.
- You’re looking to break into a new industry or advance in your profession.
- You’re seeking for a long-term position.
- You want to be able to advance in one firm.
How to Start a Staffing Agency
What are the Essentials for Starting a New Staffing Agency?
#1. Decide what kind of staffing agency you want to create.
Because there are various sorts of staffing services and industries, it is critical to know which one you want to focus on. You can pick between temporary staffing, long-term staffing, and/or term-to-perm staffing.
#2. Create a Business Plan
A business plan for a staffing agency is critical to your success. It is the essence of your company, and a weak and unrealistic business plan will not result in revenues. A good plan will also entice potential investors or banks to provide funding.
#3. Request Government Licenses
To start a staffing agency, you must first obtain all relevant state permits and licenses.
#4. Obtaining Funding for Your Staffing Agency
Out from the funds set aside for office space and equipment, you will require additional funds to meet unanticipated expenses like overdue invoices from clients who are scheduled to pay your applicants.
#5. Contract Drafting
Speak with a business lawyer about drafting contracts for job seekers and corporations that will use your services so that everyone is on the same page about their rights and duties.
#6. Choose a location
You’ll need a professional setting to test applicants, interview potential candidates, train workers, and hold business meetings.
When scouting potential territories, keep the following in mind: Lease cost and terms, client proximity, and accessibility
#7. Marketing and Public Relations
Traditional advertising can be effective if done correctly. To create an effective advertisement, underline the benefits that your clients will experience from employing your staffing service. Direct mail, online advertising, newspaper and magazine ads, and online listings/directories are examples of traditional advertising strategies.
What are the Average Start-Up Costs for a New Staffing Agency?
The cost of starting a staffing agency is determined by the size and a variety of other factors.
Start-up fees might range from $58,000 to $127,000, and you need to have a minimum of $80,000 to $135,000 in the bank.
How much do Staffing Agency owners and operators make?
Staffing agency owners and staff are paid differently depending on the profitability of their company. The national average income for a Branch Manager of a staffing agency is $46,000, according to Payscale.
Best Staffing Agencies
Founded in 1960. The company serves 38 countries. Manages over 100,000 U.S and Canadian individuals each week.
Founded in 1996. It is operational in 60 countries, enabling over 3.5 million careers. A member of the National Minority Supplier Development Council, Women’s Business Enterprise National Council, and Elite Service Disabled Veteran Owned Business Network.
#3. Robert Half
It was founded in 1948. It has internal staff in over 325 locations and places over 100,000 people each year. Has been named to Fortune Magazine World’s Most Admired Companies list multiple times.
#4. Kelly Services
Was founded in 1946. It has placed 440,000 individuals in 2019. Connects companies and employees every 20 seconds. Serves 95% of the Fortune 100.
Founded in 1989. Has over 900 locations across North America. Serves 69 other countries. Hires hundreds of thousands of individuals, including over 30,000 veterans each year.
#6. Manpower Group
Began operations in 1948. It’s operational in 80 countries and territories, including the U.S. Named one of the World’s Most Ethical Companies for the tenth time in 2019. Has connected over 600,000 individuals with employment.
#7. Express Employment Professionals
They serve the U.S., Canada, and South Africa. Places over 552,000 people per year across their 825+ franchise locations. They began operations in 1983.
#8. . Addison Group
It started operations in 1999. It’s a fast-growing company that draws from its network of 4.4 million individuals to fill vacancies.
70 branches across North America, Europe, and the Asia Pacific. Has helped 1,600 clients fill over 129,000 tech-related positions. They started operations in 1991
#10. SNI Companies
It was founded in 1998. It comprises separable divisions that specialize in the placement of administrative, financial, tech-related, and legal staff, plus more.
#11. The Judge Group
It was founded in 1970. It offers staffing services within the U.S., Canada, and India. Clients include 47 of the Fortune 100 Companies.
Staffing Agency FAQ’s
Is it good to get a job through a staffing agency?
A staffing agency can be a more effective approach for prospective employees to find a job. Job hunting might feel like a very personal and isolated experience, but it doesn’t have to be.
What are typical staffing agency fees?
Fees vary depending on the agency and role, however, the average staffing agency fee can be up to 25% of the income. According to a 2015 direct hiring estimate, it might cost up to $20,000 per employee, a 6% increase over previous years.
How long can you work for an agency?
After 12 weeks in the same position, agency workers have the same rights as if they had been hired directly by the hirer. This contains not just important wage components, but also other rights such as yearly leave.