Why would a company use a staffing agency for their employment needs? As any manager knows, the biggest asset of any company is its workforce which is also the company’s biggest expense. In a 2004 American Staffing Association (ASA) poll of 500 businesses, 59% of the companies polled sited needing help finding good permanent employees as the reason for using a staffing agency. In the same poll, many sited the need for temporary fill-in positions as another reason for using a service. As for real numbers, more than 90% of large employers, greater than 100 employees, utilize a service in their hiring process, although that number drops off dramatically for smaller firms.
Evaluate before you buy is one of the leading reasons an employer should use a staffing agency. Many new hires will decide their new position is not for them within the first 60 days which starts the whole process over for the employer. From the employer’s point-of-view, an evaluation period is an ideal tool for determining if the new hire is a correct organizational fit. Every candidate’s personality will not necessarily be in line with the existing workforce which may cause friction amongst the troops.
Many times throughout the year, employers need a variable employee cost structure in lieu of the set costs of permanent employees. Being able to adjust workforce levels with the forever changing production levels is an invaluable cost saving solution. This solution is particularly popular with Sole Proprietors who want to test the water before they expand their business.
Use of a staffing agency will free most HR Departments from the time consuming hiring process. HR Departments can focus on implementation of all the federal, state and local labor laws and regulations as well as maintaining ethical business practices, which all companies strive for. Workforce cost containment through employee retention is a major goal of most HR Departments also. Having a dependable employment service weed out undesirables will streamline the hiring process and the employee retention percentage.
If an employer is able to find a staffing agency, like HR Associates, who will perform in-depth interviews on every candidate, their employee retention will improve dramatically. Requiring personal and professional background checks on all candidates is an employment solution not every agency performs. A candidate’s previous employers are interviewed as well as any personal references. According to Accu-Screen, 53% of resumes and job applications contain falsifications and 78% of resumes were misleading, reinforcing the need for extensive candidate background checks.
Having a candidate arrive for an interview on time speaks volumes to their ability meet their commitments. It is simply amazing how a few candidates will not even have the courtesy to call and reschedule an appointment which they are unable to make. “No call, No Show’s” will not be re-considered for placement for 6 months with HR Associates.
Removing Bureau of Worker’s Compensation (BWC) and Unemployment Insurance liabilities from the equation is huge for many employers. Staffing agencies tend to have a more proactive approach to reigning in these costs being they are likely the biggest expenditure for most services. Removing some of the injury liability can really improve a companies bottom line for years to come.
It takes 24.7 days for a candidate to go from an interview to a job offer (source: N.A.C.E.) and the less time an employer has to engage in the hiring process will mean more time can be spent being profitable.
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