A tight labor market and shrinking talent pool have made it more difficult and costlier to hire new workers. According to SHRM, hiring a new employee costs $4129 and takes on average 42 days. Even though you are only paying $8 an hour to hire an employee, turnover costs can still run to $3500. These numbers do not include training costs. Training Magazine estimates that they cost $1886 per annum. The highest annual cost is for small businesses (those with less than 1,000 employees).
Making the wrong hire can result in costly penalties. The wrong hire could have cost your business $78,000 to replace. This includes indirect expenses such as lost opportunities or delayed marketing campaigns, bad employee morale, and new recruiting efforts.
There are many reasons to work with a staffing company. The right agency can help you find top talent for even the most difficult jobs. This can be done by most agencies at a fraction compared to what you would have to pay for all of the recruiting, advertising and paperwork as well as salary negotiation.
Here are eight reasons you should consider a staffing agency when hiring new employees.
1. Save time
A major benefit to working with an IT staffing firm is the time saved. Instead of it taking 42 days for the right person, it might take just a few. It doesn’t take your company too long to interview unqualified candidates and conduct a search for the right candidate. Instead, good staffing agencies will handle that task for you. They do background checks and interview candidates before they introduce you to the right one.
Anyone who has worked for a business knows the complexity of the hiring process. This is especially true when it comes to IT industries. Many IT jobs are contract or short-term. Imagine having to go through all of this again and again every single time you need someone for a job. A good staffing agency handles all the paperwork before you get a qualified candidate. They handle all the paperwork and then you get a competent worker.
The time saved by staffing agency recruiters is also due to their constant knowledge of IT industry trends. It can often be difficult to find someone at your company who has the specific skills needed to complete a contract. If you’re looking for someone with the right skills to work in your industry and can’t find them, recruiters may be able help you.
You will be amazed at the time it saves you and your company. This is especially important when your contract must start as soon possible. A professional staffing agency will locate the best person for your company much quicker than your company’s human resources department.
2. You Can Choose from a Wider Selection of Candidates
Because they have access to a wider talent pool, one of the ways staffing agencies help save time is by saving you time. Staffing agencies have access to a larger talent pool, which means they are always in search of new candidates for new jobs. It can be difficult for internal HR departments to know when you will need a particular candidate. You might need to ask them to start fresh to find the right person.
Most information technology staffing agencies will have someone that can fill this position in the shortest time possible, or even within a few hours. Most of the time, all you have to do is pick up your phone and “place a order.”
There is a misconception that staffing agencies only deal with applicants who cannot find work in other countries. This is false. Many freelancers and contractors who work for staffing agencies like the flexibility they offer. They like to work on different projects and learn new skills through a variety assignments.
It also works in the reverse direction. IT staffing agencies can be a great resource if you need to find someone temporary to work, but they might also want to take on a full time position if offered one. They will have conducted many interviews with different candidates and will be able to identify who is most interested in flexible work, and who wants a full-time position. You will be able to choose the right candidate for you based on what you tell them.
3. Save Money
Why do companies choose staffing agencies to help them? One of their biggest benefits is the savings in money. There are many ways that a staffing company can save you money.
Human resources can be replaced by a great staffing agency. It can handle everything from recruiting and terminating the right candidates to handling disciplinary matters. You will be able to spend less money as you won’t need to set up an HR department. In addition, you will have to pay fewer for employee benefits such as retirement plans, insurance premiums, and other benefits.
Enhance training efficiency: A staffing company improves efficiency because it cuts down the time your current employees need to train new hires. A staffing agency can help you find the right candidate, with the IT experience you need. They can also provide the training your new employee will need to start contributing to your business. This allows employees to be more productive and helps them reduce errors. These are all factors that can contribute to a healthier bottom line.
Overtime: Asking your current employees to work overtime can not only tire them out, but it can also increase the risk of errors. This can add a lot to your budget. You can lower overtime payments by working together with a staffing agency in order to hire qualified workers. This reduces the amount of time your staff has to work to achieve their production goals. It can also help reduce burnout. This means that there are fewer errors and less stress.
Flexible staffing: IT recruitment specialists and staffing experts allow you to hire staff as needed. It is possible to hire staff for large IT projects if you are aware of the deadline. If you have a slow year in your company, you can trim your staff accordingly. A staffing agency will help reduce the above-mentioned expenses such as lost productivity or the cost of conducting interviews and paperwork. A staffing agency can also reduce costs by performing background checks, drug tests, and pre-employment screenings.
4. Get the best from an agency’s expertise
Staffing agencies possess a level expertise that exceeds the capabilities of human resources departments. Good human resources departments will have experience in hiring and will be familiar with your workplace culture. However, they may lack the expertise required to fill a specific job or handle a specialty task. Staffing agencies will help you find the perfect person with the right skills to excel in your company.
Human resources departments are more often in touch with a specific group of people. Staffing agencies interact regularly with people across industries. Because of this, they are often the first to learn about technology. A staffing agency or recruitment agency will dedicate long hours to finding candidates.
4. Enjoy the Accountability of The Agency
Another advantage to working with staffing agents is their accountability. Staffing agencies depend on their clients success. You are therefore their top priority. The internal HR department can have many priorities. That is why it could take up to 42 business days to hire the right person. It doesn’t cost anything to hire a different staffing agency if the one you have isn’t doing the job right.
5. Access Specialized Skills in a Short Time
The skills required to work on a new contract, or for a project that is not currently in your portfolio may be unique. Although it might not be in your best interest to hire someone full-time immediately, Although the contract might have a fast turnaround time, you should still assess whether this is the type of work your company is capable to do. The staffing agencies can help you find the people you need. They’ll bring them to your business to assist with the specific task that you have in mind. You don’t have to keep them around after the specialized task has been completed.
6. Reduce friction among Hiring Managers
Ever been in a situation when your company interviews several people for a particular job but there is disagreement among your department heads or hiring managers about who is the best fit?
This can create internal tension and slow down hiring. IT fields require specific skills, so it can be difficult to find the right person in human resources.
This is where the IT staffing agency’s recruiters can prove to be an asset. Because they have extensive industry knowledge, they can quickly understand the requirements of hiring managers, sometimes without lengthy and time-consuming explanations. They can also assist a group or department head to reach consensus on the required skill-set, the best candidate, as a well as issues like the job title and compensation.
7. Lower the chance of hiring the wrong candidate
This is something we touched on a little above. Every new hire runs the risk of hiring a bad candidate. If you spend money, time and effort on a new hire, but you hire the wrong person then you will need to start all over again. This results in additional expenses and headaches. An IT staffing firm can help you find a temporary employee. You can then ask for another one if they aren’t right for you. If they appear to be the right hire, then you can see their performance before you hire them full time.
8. Let someone else market the job position
Another benefit of a staffing company is the fact that you don’t have any to do with advertising and marketing for the job. An IT staffing agency will help you assume all of the hiring responsibilities that a company would normally do. This includes advertising for new employees.
While technology has helped to focus advertising on more relevant audiences, the truth of the matter is that some of your advertising dollars may go nowhere. Working with an IT staffing agency will make this a non-issue. You don’t have to advertise. You simply tell staffing agencies what kind of people you need and they go to work finding them.
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- March 26, 2025 3:14 pm