What Can A Staffing Agency Do for You?

Utilizing a staffing agency can save your business time and money as well as find equipped candidates for your position. 

Low angle close up of a Caucasian male and an Asian female business creative working together and smiling in a casual modern office, with blurred euipment on their desk in the foreground
How Does it work?

A staffing agency works as a middleman between employers and workers to vet applicants for open positions.

1.     The agency assists with creating a job description then advertises it for your business. They also reach out to candidates who may already be qualified for the open position.

2.      The agency then reviews the qualifications and experience of applicants before scheduling and conducting interviews. Next, the candidates that fit best are introduced to the hiring manager of your business. 

3.     The hiring manager will then interview the staffing agency’s choices before making the final hiring decision. This saves you and your staff hours that would have otherwise been spent filtering out countless unqualified applicants. 

Most agencies handle all of the paperwork associated with new hires! They’ve been known to assist with contracts, taxes, and other payroll tasks. 

Benefits of Using a Staffing Agency 

If your business needs additional labor, working with a staffing agency offers many benefits such as flexibility and reduced potential legal risks. Employment agencies are required to pay 50% of payroll taxes by the IRS because they are considered an employee of the agency. Often times an agency will also provide insurance coverage. From a financial and operational standpoint, hiring employees also come with financial risks. Especially if someone has to be fired or leaves without notice. When you use an agency, they assume many of these liabilities for you. 

An agency can save businesses time in identifying qualified candidates in a timely manner. They offer flexible, temporary staffing. An agency can reduce the potential legal risks if an employee under the agency’s care is terminated. 

Cost of Using a Staffing Agency

While markups vary substantially between agencies, staffing agencies typically charge 25% to 100% of the hired employee’s wages. So, for example, if you and the staffing agency have agreed on a markup of 50%, and the new employee earns an hourly wage of $12, you will pay the agency $18 per hour for their work. 

The agency does the tasks associated with placement and negotiations of potential employees. This offsets the cost of hiring an agency by having enough people to continue production.

Reach out to one of our recruiters to find out if a staffing agency is a good fit for you!

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