As a business grows, bringing in good people while keeping up with business activities becomes increasingly difficult. A staffing company can help. As experts in what they do, staffing agencies make smart, efficient talent acquisitions for their clients without negatively impacting productivity.
When a business has a strong relationship with a dedicated staffing partner, it can reap many benefits. Below is a short list of ten benefits that your company can enjoy with a strong staffing partnership.
1) Improved Productivity
The first big advantage of collaborating with a staffing company is greater efficiency. As vacancies are filled with skilled employees, productivity inevitably rises. When your staffing company helps with onboarding, it also creates greater efficiencies.
2) Lower Turnover
When an experienced employee leaves your company, you have to invest in hiring and training a new person. A staffing partner can help reduce turnover by increasing the average quality of hire.
3) Lower Internal Costs
There are internal costs associated with staffing. Hiring, onboarding and then waiting for a new to get up to date affects the bottom line. A staffing company can allow you to identify qualified matches who are more prone to hit the ground running.
4) Temp-to Hire Option
A temp-to-hire arrangement enables employees to assess prospective full-time staff members before committing to hiring them full time. Many contract employees are open to a temp-to-hire as it affords them flexibility as well.
When your company uses a temp-to-hire approach, you can see how each possible full-time worker fits into the position and the company.
5) Lower Unemployment Claims
When a company hires a worker, it becomes liable for the possible unemployment costs. Hiring contract employees from staffing agencies means the liability is shifted to the staffing company. Temporary employees also enable a company to staff up or down according to business demands.
6) Staffing Expertise
Experienced staffing agencies know your company and your industry. They combine this expertise with proven screening, interviewing and training processes.
7) Greater Flexibility
Your labor requirements can change so rapidly in cases of maternity leave, sick leaves, seasonal shifts or unexpected spikes in business. A staffing company can allow you to flex your staffing as needed to meet unpredicted needs.
8) Access to More Talent
Staffing companies let you cast a much wider net for talent than you would otherwise be able to do. This helps to boost hiring quality and helps your company concentrate more on revenue-generating activities.
9) Faster Hiring
Critical positions left open can have a big negative impact on a business. With its broad and deep pool of talent, a staffing company can fill open positions faster than an internal team.
10) A Greater Focus on Top Candidates
When you opt to have a staffing company screen your applications, you decrease the pile of resumes that must be screen and can put a lot of focus on only the most qualified candidates.
As a staffing agency, you need to have a strong recruitment process in place to differentiate yourself in the competitive staffing market and win contracts.
So, how can you make sure that your process is effective and efficient, especially as recruiting continues to be more remote-based?
According to a survey, 51% of recruiters have recently interviewed candidates remotely, with 42% making a job offer remotely. And even though there are now more candidates available on the job market, companies still have problems finding people with the right skills. With hiring moving remotely and skills shortages approaching, staffing agencies need to rethink the way they hire.
The good news for staffing agencies is, incorporating digital tools like video interviews, pre-employment assessment, and using automation, changes can be made to meet the ever-evolving environment.
We’re sharing 9 best practices staging agencies can use for recruitment—let’s get hiring!
The first step to recruiting the right people is knowing exactly the type of employee your client needs.
Ask your client:
What is the role about?
What are your requirements?
What is your budget?
Asking some simple questions at the start of the recruitment process can shine a light on what your client is looking for. You can then use this information to determine the best recruitment strategy for each role.
It’s important to remember that some clients will have different needs for different roles, which you can help them understand. For example, some roles will require recruiting candidates that have a certain level of specific skills and experience, while others will focus on broad abilities like conversational skills.
To prepare your staffing agency for this, you should create a flexible recruiting process that lets you build in specific client needs, like skill tests, and add in extras like background checks if you need to.
Focusing on what your clients need and finding a tailored solution for them helps you improve your client experience
2. Set a clear timeline
You don’t have to have a day-to-day plan for each stage of the hiring process.
But what you do need to do is be realistic and set a clear timeline and deadline. This is important not only to keep your staffing agency operations organized but also for your clients. Adding a timeline into your process means your client will have a date in mind for when you’ll have a candidate in place, which will give them confidence in your process.
And if there are any delays in that process, make sure to communicate them to your client immediately.
The easiest way to establish a timeline with your client is to figure out when they need the job’s start date to be. Once you have a start date, you can build a recruitment process backward from that day. For example, if a client needs a role filled in 8 weeks, you can use that data to map out a timeline like:
Sourcing and pre-employment tests to happen in 3 weeks
First round of interviews in 4 weeks
Second round of interviews in 5 weeks
Onboarding and training in 6 weeks
Mapping a timeline out will make it easier for your agency to manage your workload and your client’s expectations.
3. Design a virtual recruitment process
As we’ve already highlighted, you won’t always be able to meet the candidates in person.
So, you also need to make sure your recruitment process works in a remote setting. Even if you haven’t used the technology before, now is the time to start exploring remote recruitment tools like video interviewing and digital skills tests to streamline hiring over the internet.
For example, with one-way video interviews, candidates can use the tech to record answers to written or video-based questions in the initial application process, which reduced the need for time-consuming phone screens.
In short, digitizing your recruitment process will help you learn a lot about what a candidate is like before you ever invite them to interview. What virtual interviews also do is broaden your talent pool. As you can attract and interview candidates virtually, you will open up your hiring options to candidates that live abroad.
This same tech can also be used for a bunch of different recruitment techniques, like hosting a virtual job fair to attract even more talent to fill open positions.
Don’t forget that the best part about adding new tech into your recruitment process is the flexibility it gives you. Depending on your client’s needs, you can mix and match tools like virtual interviews and job fairs to attract their ideal candidates.
Successful company owners recognize that their success is due to their greatest assets: products/services and their employees. That’s why it is vital to hire, mentor and retain talented, capable, productive, and reliable staff.
Easier said than done, of course. Company owners have businesses to run. The day-to-day urgency of doing that can make the hiring process – which is time-consuming and not always productive – a ‘back burner’ priority.
That’s when a staffing agency might be the solution.
Rather than trying to do it yourself ‘in-house’, a staffing agency can identify the best candidates for your needs and eliminate candidates who aren’t suitable. Bottom line: a good staffing agency will provide well-vetted individuals who could add great value to your enterprise.
With so many staffing agencies offering their services, how can you be sure that you’re collaborating with the best one? Here are some suggestions to consider:
Have a Clear Definition of What Your Business Needs
When initiating discussions with a potential staffing agency, be as specific as possible about your staffing objectives. Do want to fill a position for the short term? Long-term? Permanently? Or some combination? And if you have any unique requirements, such as federal or state background checks, share that information.
Based on your needs and hiring objectives, you’ll want to make sure that the agency’s hiring focus aligns with the type of hires that you need. This is especially important if you are looking to hire full-time employees because you’ll want to avoid agencies that primarily place short- and long-term contractors.
How Long Has the Staffing Agency Been in Business?
While past results are never guarantees of future outcomes, a proven track record of success is a significant measure of a staffing agency. Ask for details about the agency’s establishment, including background on the founders, and its development. While years in operation is one good indicator of the agency’s viability, it’s not the only one to consider.
Does the Staffing Agency Have Experience in Your Industry?
When evaluating potential staffing agencies, it’s vital that you look for a provider who has to experience staffing in your market segment. That eliminates the need to educate the agency on market conditions and challenges as well as your unique business needs.
While it’s no doubt useful, it’s less important that the staffing agency has a deep understanding of the technical aspects of your company’s products or services and much more important the agency possesses in-depth knowledge of your industry category, your company’s position, current marketplace trends, challenges, and opportunities.
What Categories of Staffing Does the Staffing Agency Offer?
Staffing agencies segment the marketplace into categories. While some agencies may provide staffing services across the entire range of categories, many focus their attention on select segments. Here are the marketplace categories that are frequently used.
Physicians, dentists, nurses, hygienists, medical technicians, therapists, home health aides, custodial care workers, etc.
ENGINEERING, INFORMATION TECHNOLOGY, AND SCIENTIFIC
Consultants, analysts, programmers, designers, installers, and other occupations involving computer sciences or communications technology, etc.
CLERICAL AND ADMINISTRATIVE
Consultants, analysts, programmers, designers, installers, and other occupations involving computer sciences or communications technology, etc.
PROFESSIONAL – MANAGERIAL
Accountants, bookkeepers, attorneys, paralegals, middle and senior managers, advertising and marketing executives, and other non-technical occupations that require higher skill or education levels.
Does the Staffing Agency Have the Talent Your Business Needs?
Make sure the staffing company fully understands your needs and determine whether they can identify appropriate, qualified candidates in a timely manner.
HOW STRONG OR LARGE IS THEIR TALENT POOL OF CANDIDATES?
It’s easy to think that all agencies have the same pool of candidates to draw from but that isn’t the case. The size of the agency, their capacity to handle large numbers of candidates, their marketing, their reputation in the community, the way they treat employees, and how they actively source candidates are all significant factors to the size of their talent pool and what kind of candidates they will draw. High-end agencies will draw high-end candidates for all positions.
WHAT DOES THE STAFFING AGENCY CONSIDER ADEQUATE LONGEVITY?
Not all agencies will see longevity the same and knowing what their goal is will be critical to you finding the right match. The agency you choose should be very clear on your expectations and their goal should be to find you the right candidate the first time with as little turnover in the position as possible.
WHAT’S THEIR TEMP-TO-HIRE RATIO?
If your goal is to hire a long-term candidate to your payroll to stay and grow with your company, that should be the goal of the agency you select as well. While it is difficult to quantify, agencies should have an approximate idea of how often they are successful in making these long-term placements for their clients. This is a reflection of their ability to screen and coach candidates as well as educate them on the position.
How Does the Staffing Agency Source Their Candidates?
Ask about the online tools and platforms that the staffing agency uses – in addition to LinkedIn and Job Boards. Sourcing is the single biggest challenge for any staffing agency. Agencies that are particularly adept at sourcing utilize a variety of tools and platforms. In addition to the obvious, ask what other tools and platforms they use. Here are a number of options that the staffing agency should mention:
SOCIAL PLATFORMS, SUCH AS FACEBOOK, SLIDESHARE, GOOGLE+, TWITTER, AND MEETUP
ONLINE RECRUITING SOURCES, SUCH AS INDEED, MONSTER, ZIPRECRUITER, AND CRAIGSLIST
Successful agencies will have their own job boards that are optimized for maximum traffic and draw candidates to their jobs.
What Screening and Background Checks Does the Staffing Agency Perform?
Pre-employment screening services include background verification, drug screening, skills assessment, and behavioral assessment tools. A thorough background screen verifies important factual information about a prospective employee (i.e. identity, employment history, education credentials). It also helps gain critical information about an applicant’s character and past history that isn’t always apparent in an interview or application. The right agency will be able to conduct pre-employment screening as well as to conduct a background check and drug screen once a position has been offered.
What is the Staffing Agency’s Fee/Rate Structure?
For direct hire positions, agencies typically charge between 15% and 30% of candidates’ first-year compensation. “Compensation” typically means just salary, but be sure to clarify that the agency is not also including a potential bonus or commission structure in their fee calculation. The good news is that is somewhat easy for you to negotiate the fee, as most agencies will be flexible in an attempt to win your business, particularly if you have multiple positions to fill. The pricing for temp-to-hire and temporary positions will vary by agency and position as it fluctuates based on the price of workers’ comp and employer taxes. When comparing the pricing of agencies make sure you are comparing apples to apples and getting what you pay for.
How Does the Staffing Agency Manage Poor Placements?
All agencies will have some turnover in their placements. Find out how that is handled when it happens. Will the agency end the assignment for you or do you have to? Is there someone available to you at all times in the event you need to end an assignment immediately? Depending on the nature of your work, it is important that you can reach someone from the agency at all times.
How Easy is it to Contact the Staffing Agency Specialists?
Selecting a staffing agency is not easy – and a lot depends on your expectations and your ability to meet them. While it’s a professional relationship, don’t overlook the ‘personal’ aspect. You’ll need to trust and rely on the staffing agency to provide you and your business resources for sustained success.
Will the Staffing Agency Make Face-to-Face Visits?
Make sure the staffing firm will visit your location to get a feel for your culture, meet employees and get a first-hand understanding of your business.
How Transparent is the Staffing Agency?
In any business relationship, honesty and transparency are very important. Your staffing agency should never misstate costs, be vague in answering questions or try to rush you into making hiring decisions.
Finally, Shop Around
It’s absolutely vital to perform due diligence research. Selecting the right staffing agency is challenging – there are plenty of them providing great service to their clients. Don’t hesitate to ask a potential staffing agency for references to a few of their clients. The information you could gain from speaking to them will be very valuable in your decision-making process. Among many others, the Better Business Bureau and a local Chamber of Commerce are two sources to consult.
This blog post is intended for informational purposes only and does not constitute legal advice. No attorney-client relationship is created between the author and reader of this blog post, and its content should not be relied upon as legal advice. Readers are urged to consult legal counsel when seeking legal advice.