According to Career Builder’s survey, 77% of millennial clients intend to utilize staffing agencies more frequently in the next five years, indicating that these agencies are becoming an important participant in the current employment environment. Staffing firms are especially useful for small businesses without a dedicated recruitment staff, as well as larger enterprises that require a consistent supply of new talent, particularly those with specialized or specialty needs.

However, not all staffing agencies are alike. They differ in specialization, candidate pool quality, and recruitment efficiency. Choosing one that meets your company’s goals, whether that means industry-specific knowledge, a diverse pool of candidates, or expedited recruitment processes.

This tutorial explains what a staffing agency is, how it may help your business, and what to look for when hiring one. We’ll look at the benefits they offer, such as specialist recruitment knowledge and access to large candidate databases.

What is a Staffing Agency?

A staffing agency acts as a liaison between employers (client firms) and job seekers (candidates), providing services to match the right skills with the right jobs. They normally have a pool of pre-screened individuals to discuss your position with, and they can also find additional acceptable prospects if they don’t have the perfect person on board.

Their primary roles are:

• Candidate sourcing – Actively seeking out potential candidates through various channels.
• Candidate screening – Conducting preliminary interviews, skill assessments, and background checks.
• Job matching – Ensure the employer’s job requirements and the candidate’s skills and experience match the available position. 
• Coordination and communication – Facilitating communication between the employer and the candidates throughout the hiring process. 
• Onboarding process – Ensuring all the needed paperwork and documentation are completed.
• Compliance and legal matters – Take responsibility for completing relevant labor laws, regulations and employment standards.
• Providing HR solutions – Some staffing agencies offer HR-related services such as workforce planning, talent management, consulting, etc. 
• Post-placement follow-up – Follow up with both the employer and the candidate to ensure the process was successful. 

Now that you’ve learned about the services provided by a staffing agency, let’s look at how it operates, connecting businesses with job seekers and assisting in the quick and efficient filling of openings.

1. You Contact the Agency

The first step is to let the agency know that you have a vacancy coming up. They will want some basic details of the role, including responsibilities, any requirements you have, and your timeline for finding the right person.

2. Job Description

Placement agencies will develop your requirements into a job description that they will use to advertise your vacancy. Your internal job description can be used as a basis for that, but a good recruiter will want to rewrite it to appeal to the right candidates.

3. The Role is Advertised

This is where the agency really earns their money as they put your advert in front of the right candidate. 

This could be through:

– Calling potential candidates who are registered with them – most agencies maintain databases with hundreds of candidates.
– Adding a listing to Jobs boards
– Promoting the opening via their social media
– Head-hunting suitable candidates

4. They Create the Shortlist

The agency will then vet any candidates who apply, checking them against the job profile. A good agency will also have gained a grasp of your company culture and the personality types at play, so they’re presenting you with candidates who fit. 

It’s at this point any vetting needed will take place, for example, checking skills or certifications.

5. Decide Who to Interview

You then get to review the shortlist and decide which candidates you’d like to talk to more fully. You let the agency know, and they make the arrangements.

6. Make a Decision

Once you’ve made your choice, you let the agency know, and they will talk to all the candidates, both successful and unsuccessful, and give them feedback on what went well and what didn’t.

7. HR

You’ll need to do all the relevant paperwork to get the new employee on the books. If you’re hiring a remote employee this can be complicated by international tax laws, so your staffing agency may take care of this for you by becoming the ‘employee of record’.

8. Onboarding

The agency will then support you through the onboarding process, making sure that you have a seamless experience with your new hire.

The Role of Staffing Agencies

In high-stakes industries that require specific skills and knowledge, collaborating with a staffing agency can provide a competitive advantage in personnel acquisition. Staffing services specialize in sourcing, screening, and placing people in specific roles, helping businesses to quickly and efficiently access top talent. Let’s look at the benefits of partnering with staffing agencies for specialized talent acquisition and how they may help firms succeed in high-stakes industries.

Streamlining Specialized Talent Acquisition Processes

Staffing agencies act as strategic partners for businesses seeking specialized skills in high-risk industries. These organizations have large networks and resources dedicated to discovering and recruiting persons with the specialized skills and experiences needed for specialty roles. Companies that outsource their recruitment processes to staffing firms can save time and dollars while ensuring access to top-tier candidates.

Furthermore, staffing agencies use their business knowledge and market insights to provide significant counsel and help throughout the recruitment process. Staffing agencies manage all aspects of talent acquisition professionally and efficiently, from writing job descriptions and finding candidates to conducting interviews and negotiating offers, allowing businesses to focus on their main business objectives.

Specialization Matters

Specialization is critical in sectors with high risks. Roles may require highly specialized talents and experiences that are difficult to find through standard recruitment channels. Staffing companies that specialize in these areas have a thorough awareness of the particular problems and requirements connected with specialty roles, allowing them to find and attract individuals who possess the exact qualifications required for success.

Read Also: How to Optimize Your Staffing Agency Experience

Furthermore, employment firms specializing in high-stakes industries frequently have access to passive applicants who, while not actively seeking new opportunities, possess the skills and knowledge that employers desire. Staffing agencies can give companies with access to applicants who would otherwise be unavailable through traditional recruitment methods, giving them a competitive advantage in talent acquisition.

Partnering with Industry Specialists

Partnering with a staffing agency that specializes in your industry provides access to top talent and valuable insights that can inform strategic decision-making. These agencies have a deep understanding of industry trends, market dynamics, and talent availability, allowing them to provide tailored recruitment solutions that align with your organization’s goals and objectives.

Additionally, staffing agencies specializing in high-stakes industries often have established relationships with industry professionals and organizations, further enhancing their ability to identify and attract top talent. By leveraging these networks and connections, staffing agencies can expedite the recruitment process and ensure a seamless transition for both candidates and employers.

Maximizing ROI

While some companies may be hesitant to invest in staffing agencies due to perceived costs, the return on investment (ROI) of partnering with specialized agencies can be significant. Staffing agencies streamline the recruitment process, reducing time-to-hire and minimizing the risk of making costly hiring mistakes. Additionally, by accessing top talent more efficiently, companies can achieve faster ramp-up times and realize greater productivity and performance from their new hires.

Furthermore, staffing agencies often offer flexible pricing models and customizable solutions to accommodate the unique needs and budgets of their clients. Whether you’re looking for temporary staffing, temp-to-hire, direct hire, or payrolling services, staffing agencies can tailor their offerings to meet your specific requirements, ensuring maximum ROI and value for your investment.

Benefits in Recruitment and Hiring

According to Gitnux, 90% of businesses worldwide use talent acquisition agencies to some extent. Here are the main reasons why: 

Save Time

Staffing agencies have extensive networks and databases of candidates, including both active job seekers and passive companies. This gives your company access to a broader and more diverse talent pool, increasing the chances of finding qualified candidates quickly. 

On average, according to the Society for Human Resource Management, the average time to hire is around 36 days. A LinkedIn survey revealed that companies usually take between three to six weeks. 

In contrast, CareerBuilder revealed that 76% of employers using staffing agencies fill a position within the first month.

Hire Fast 

They have everything set up and ready to start the hiring process. They have a pool of candidates looking for work, and they know the right places to post advertisements to get a great response. 

All that speeds up the hiring process – here at DistantJob, we can find our clients a new developer in under two weeks (in other words, 40% faster than the industry average). However, we do this focusing exclusively on headhunting, which allows us to find the perfect fit for every company as we target their requirements. 

Flexibility

Using an agency gives you the flexibility of pulling in additional staff as and when you need them on temporary contracts, letting you scale your business easily or pull in extra manpower when you need it.

According to the ASA, 79% of companies in the US use staffing agencies to find temporary or contract employees, providing them the flexibility to scale their workforce based on business demands. 

Wider Talent Pool

Remote recruitment companies can find you the right person, no matter where they are in the world. Your talent pool is usually limited to people who live nearby or are willing to relocate to your area for work, but what are the chances that you will get the best person?

Hire Quality Professionals 

If you work with a specialist agency, then you get a recruiter who knows the ins and outs of what you’re trying to do. 

For example, if you’re reviewing CVs for a software developer a keyword search isn’t going to cut it. Specialist knowledge means recruiters understand exactly what’s needed.

Reduced Paperwork

If you’re hiring an employee who works overseas, there are legalities to consider to make sure that you comply with local tax legislation. 

A staffing agency handles all that for you, becoming the employer of record in the employee’s home country. You just pay their invoice at the end of the month and get on with managing your new employee with none of the admin headaches.

Hire Right First Time

A good staffing agency will not only find you candidates with the right skills, but they’ll also find people with the right personality to work well with your team. They should take the time to understand your corporate culture and find people who will thrive within it.

The CareerBuilder study mentioned earlier revealed that 36% of employers using staffing agencies reported that one of the main benefits is reducing the risk of a bad hire.

Focus on Core Competencies

Outsourcing the hiring process to a staffing agency allows companies to concentrate on their core business activities as the agency handles the recruitment and staffing tasks.

Confidential Hiring 

In certain situations, companies may prefer to keep their hiring activities confidential, such as when replacing a key employee. Staffing agencies can maintain confidentiality during the candidate search and selection process.

Types of Staffing Methods

The different solutions that staffing and recruiting firms generally provide under staffing are:

1. General Staffing or Contract Staffing

Bigger companies have short-term, contractual requirements that need to be fulfilled quickly. A general or contract staffing company can move quickly to fulfil such a need. Employees hired in temp staffing roles may be converted into full time employees later.

2. Staff Augmentation

The outsourcing of manpower that is based on a skill requirement or for the completion of a specific project, where one or more candidates are added to a team to execute certain tasks is called staff augmentation. As an employer you will be managing the members of your extended team, deciding how they will be onboarded and trained.  

3. Virtual Staffing

Virtual assistance is an integral part of business planning and growth in companies today. Even key positions in companies are being held by remote staff. Virtual staffing contributes to increased productivity (for few individuals), saves cost of infrastructure and time, and is proven to contribute to a company’s growth.

4. Specialty Staffing

Finding the right candidate can be a difficult job. The candidate needs to be unique and qualified, meet the skills required for the job and be the right cultural fit for the organization they will be joining. Generally, specialty staffing is for niche roles such as those in legal firms or accounting firms where only chosen few get into.

5. Patient Support Program

A patient support program is also referred to as patient solutions, patient services, or patient assistance program. An increasing number of patients are being enrolled for patient support programs, given the growth of remote monitoring and digital therapeutics. Pharmaceutical companies want to improve the patient journey, but following up on each patient can be a difficult task, which is why most of them outsource patient support.

If you’re looking for a cost-effective strategy that saves you time and enables you to access top tech talent, then partnering with a staffing agency can be the best choice for your business.