Staffing agencies play a crucial role in connecting employers with qualified candidates, but there are a lot of misconceptions about how they work and benefit their partners. In this article we’ll talk about common misconceptions surrounding staffing agencies!
Misconception — Markup for Pure Profit
One misconception is that the amounts charged by staffing agencies are for pure profit. In reality, the fees charged by staffing agencies cover expenses associated with the recruitment and administration processes. These expenses include advertising job postings, conducting interviews, performing background checks, and managing payroll and benefits. By taking on the recruiting, hiring, and administration of employees, an agency is saving you the time and resources it would take for you to do those tasks. While prices might be higher than average hourly pay, those additional fees support the effort required to match skilled individuals with job opportunities efficiently. (Read more on this topic here.)
Misconception — Staffing Agency Employees Cost More
Another misconception is that staffing agency workers cost more than regular employees. While it might appear that way due to the inclusion of the agency’s fee, the overall cost can be comparable or even more cost-effective for the employer in the long run. With contracted or per diem workers from a staffing agency, you’re paying for a ready to go worker that won’t require overtime approval or additional costs and training time. A good staffing agency partner will usually handle administrative tasks such as payroll, benefits, and taxes, reducing the time and resource strain on their client. Ultimately, the prices of a staffing agency wind up being more cost effective to the alternative of overworking a team, approving tons of overtime, or having to worry about costs like benefits and severance packages.
Misconception — Recruiters Are Just ‘Headhunters’
The idea that recruiters are merely ‘headhunters’ is another common misconception. While ‘headhunting’ is one aspect of recruitment, recruiters perform a range of functions beyond sourcing candidates. They play a critical role in screening, interviewing, and assessing candidates to ensure they align with the client’s requirements. Good recruiters also handle negotiations, facilitate the hiring process, and provide ongoing support to both the employer and the candidate. Their role extends beyond finding talent; it encompasses building relationships and ensuring successful placements. (Not all recruiters will go above and beyond though, which is why you want to make sure you’re working with a good staffing partner. Check out this article to read about assessing your staffing partner.)
Understanding the complexities of staffing agency operations will help you to understand the reality beyond these misconceptions. While the fees associated with staffing services may seem like an added cost, they reflect the value of the services provided. The ability to access a pool of pre-screened, qualified candidates quickly, along with the administrative support and flexibility offered, makes staffing agencies a valuable resource for employers seeking to streamline their hiring processes and meet their workforce needs effectively. And recognizing the scope of a good recruiters’ and appreciating the services provided can contribute to a more accurate understanding of the benefits that staffing agencies bring to both employers and job seekers.