Things Hiring Managers Should Know before Contacting Staffing Agency 

Finding qualified talents remains difficult for many small companies. According to iHire’s survey, 64.2 percent of small businesses say they struggle to attract qualified talent - a trend that happened in 2020. Small businesses could be thriving in the current economy. But, when it comes to recruiting, many of these companies are experiencing growing pains. 

Next to receiving too many unqualified applicants, small business owners also cited a low volume of applicants per job opening (55.3 percent), difficulty in retaining employees (15.2 percent), and a lack of budget to support recruiting goals (15.2 percent) as their biggest frustrations in the hiring process. Reviewing applications, interviewing candidates, and negotiating salaries take time from small business owners that might end up hurting the business in the long run. For this very reason, some employers partner with staffing agencies to help them reach qualified candidates for open roles. 

See also: Talent Acquisition vs. Recruitment 

If you are a small business owner considering working with staffing agencies to meet your hiring needs, here is what you need to know about the process. 

What is a staffing agency? 

Staffing agencies help small to large businesses recruit employees to fill certain positions. The agencies are called and given certain skill-sets that clients need for vacant positions in their organisations. The process of collaborating with staffing agencies typically goes as follows: 

• Employers contact a staffing agency. They reach out to an agency that specialises in specific industry, while providing information such as job responsibilities, number of employees needed, timeline to hire new workers and salary rate.

• The agency creates a job description. The agency writes up a job description and advertises it for the clients. They might also reach out to potential candidates individually if the candidate is a good fit for a job. 

• The agency vets the candidates. When the agency receives candidates’ applications, they will review the experiences and qualifications before scheduling and conducting interviews. The agency will sort out and choose the most qualified individuals to introduce to their clients. 

• The employers make the final decisions. It is the hiring manager who will interview qualified candidates and make final hiring decisions. This saves you and your staff hours that would otherwise spend sorting through countless applicants. 

• The agency takes care of the paperwork. Most agencies handle all the paperwork associated with new hires, such as contracts, taxes, and other payroll tasks. 

How much does a staffing agency charge? 

Staffing agencies typically charge 25 percent to 100 percent of the hired employee’s wages. For example, if you and the staffing agency have agreed on a markup of 50 percent, and the new employee earns an hourly wage of $10, you will pay the agency $5 per hour for their work. 

In addition to the markup, you might be expected to cover additional fees for filling the position or a contract buyout fee if you hire a temporary worker permanently. 

How to work with staffing agency 

• Find the right company - make sure you are working with a reputable firm that takes pride in the employees they send. As with all business relationships, a staffing firm also needs to provide value to you to be worth the investment. 

• Be clear with your needs and wants - good staffing companies want to help you find the best workers and are able to communicate openly and clearly. Therefore, you should also help them by communicating your needs and wants clearly in the first place. 

• Check the legal aspects - depending on the types of positions a staffing firm will help you fill, check that employment-related detains, such as worker classification and payroll taxes. 

Ready to take your hiring process seriously? Find the right staffing agency, and with our expert’s advice, let’s start a great professional relationship. 

Next read: Measuring and Evaluating Recruitment Results