Why a small business should use a staffing agency
In today’s business environment, any size company can benefit from using the services of a staffing agency. There are several reasons to use staffing services and in this entry I focus a little more on the reasons for a small business although these are true for just about any size business.
Expertise – Staffing agencies deal with various companies and positions on a daily basis. They can have more experience and knowledge than the human resources departments of smaller businesses. They are more aware of employment trends, recruitment, and requirements of certain positions.
Talent – smaller companies may have trouble competing against their larger competitors when it comes to pay, benefits, and their reach for recruitment. This could be affecting their ability to attract better talent and productivity can suffer as a result. A staffing agency can have a larger talent pool to choose from and may attract talent that would otherwise go un-recruited.
Cost – using temp workers is usually always more cost effective in the short-term. Staffing agencies can provide you a person that can start right away, keeping you from having to deal with recruiting, drug testing, background checks, and potential advertising costs. More of your payroll can become variable costs. When you have production needs, you can bring in temp workers and although you pay a markup for their services, you avoid the fixed costs of bringing on regular employees.
Reduced Risk – The employees report and work for you but you are not responsible for workman’s comp, payroll taxes, or unemployment claims as they are all handled by the staffing agency.
Flexibility – Using a staffing agency give your more ability to increase or decrease the number of employees you have as production needs change. During slow periods, you can downsize without having to deal with the time and potential sadness that comes with layoffs. During busy periods, you can quickly increase the size of your workforce so that deadlines are not missed. You will be able to respond to production needs with no or very little time that would normally be spent on everything associated with hiring new employees.
Business Developer, All Staffing Warehousing