The Financial Benefits of Working With a Staffing Agency
Looking for employment can be a full-time job in itself, and as a business, one of the top priorities is effectively managing expenses. A business needs to manage and sometimes cut costs to be successful and efficient. One of the best ways to reduce the expenses of recruiting is to partner with a staffing agency. One common misperception is that outsourcing hiring needs to a staffing firm can cost you more money. A staffing firm can actually save you money in the long term. In this article, we’ll discuss what a staffing agency is, how staffing agencies work, and the top financial benefits of working with a staffing agency.
What Is a Staffing Agency?
When it comes to seeking out and pursuing great talent for your positions, there is much to consider. Staffing agencies can take on the heavy lifting of finding great employees so you can focus your budget and attention on other areas. A staffing agency is an organization that works to match job candidates with hiring companies, finding an ideal match for both parties. A staffing agency goes by many names, including recruiting, search, or staffing service, firm, company, or agency. Staffing agencies act as middlemen between job seekers and employers. A staffing firm can save you time and provide additional benefits.
Other benefits of using a staffing firm include providing your business with more flexibility and reducing possible legal risks. By partnering with a staffing firm, you also have the increased potential to secure connections with an entire pipeline of talented people, rather than with just active applicants. With a staffing agency, you can find opportunities and save money you might not have as easily or quickly done using in-house resources. You will also have the chance to connect with more candidates than may have otherwise been possible. You have the increased potential to find the right matches for your company and for the positions you seek to fill.
How Do Staffing Agencies Work?
Staffing agencies work to match you and your company with the right job applicant, and vice versa. The input of a staffing firm can save valuable time for employers and employees alike. They work to recruit qualified candidates on behalf of suitable employers looking to fill their open positions. They jointly work to recruit qualified employers on behalf of suitable job seekers looking to fill an open position. The open positions can be part-time, full-time, or temporary in some cases. Staffing firms often also allow prospective employees seeking to begin work in a new field to test new positions before committing, and gain field experience.
As the hiring company, you work with the staffing agency to determine the kind of talent to target with your budget, how to structure and time the interview process, and how to construct the most compelling offer packages possible. The staffing agency will then take on the hiring tasks from there. They usually write up a job description matching your specifications, solicit or advertise for job candidates, and vet the job candidates once they apply. Vetting the candidates effectively sorts applicant suitability and who the top applicants are. Once the staffing firm finds the most suitable candidates, they send them to the hiring company for additional vetting and interviews.
Financial Benefits of a Staffing Firm
Looking for talent for your team can be a full-time job, and hiring great talent isn’t cheap. A staffing agency can provide you with many benefits, including financial benefits. Some of the top benefits of working with a staffing agency are streamlining your employee search, having additional recruiting resources and knowledge working for you, and gaining access to more candidates. You also receive expert help with candidate qualification. Some of the top financial benefits of working with a staffing agency include removing initial hiring costs including the costs of advertising and recruiting tools, reducing the risks of turnover costs, reducing HR costs, and improving efficiency with contract employees.
Remove Initial Hiring Costs
One of the first steps to take when seeking to hire a new employee is to advertise your open position. The internet has become a highly powerful tool for recruitment. While employee recruitment websites can bring in large amounts of job hunters, these services aren’t free. Costs are even higher if you need to also buy LinkedIn, Google or Facebook ads to promote openings. A staffing agency will use its resources to advertise and promote for you instead of your company incurring the responsibility and costs.
Reduce Risks of Turnover Costs
According to studies, the cost of employee turnover can be anywhere from 16%-33% of the employee’s wage. Essentially, someone who makes $40,000 annually can cost you upwards of $13,000. Employee turnover can be very detrimental, but with the right employee retention strategies, you can effectively reduce the risks of turnover costs. With a recruitment professional, you can hire the right employees the first time around.
Reduce HR Costs
Another significant financial benefit of working with a staffing agency is decreasing the hiring company’s wage costs. Staffing agencies are in the business of successfully finding employees for hiring companies, as well as helping clients increase their financial efficiency. One way a staffing agency helps a client become more financially efficient is by removing the need for the substantial costs of an in-house recruiting team. A company must consider the monetary value of hiring time.
Improve Efficiency With Contract Employees
Amongst the various job types a recruiting agency places, contractors are renowned in the staffing field. Contract positions allow a company to hire an employee for as long as a project requires, avoiding an unnecessarily extensive commitment and allowing a business to become more financially efficient.
Experience the Financial Benefits of Working With Brightwing
There are many financial benefits of working with a staffing agency, including removing initial hiring, turnover, and HR costs while improving financial efficiency. For the top financial benefits of a dedicated staffing agency, connect with Brightwing today.
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