How a staffing agency works: A comprehensive step-by-step guide

Contents:

1. How does a staffing agency process look like?
2. How much does a staffing agency charge?
3. Best practices you need to know to work with a staffing agency the right way
4. Wrapping Up

1. How does a staffing agency process look like?

A recent study by ManpowerGroup revealed that 77% of employers are currently facing a big challenge: they can’t find the right people to fill their job openings. This marks the highest difficulty level in 17 years.

So, how can businesses tackle this issue? Well, one way is to team up with a staffing agency. Here’s how it typically works:

• Getting Started or Kick-off meeting
  First, you, as the employer, reach out to a staffing company that specializes in your field. You tell them about the job you need to fill, how many people you need, when you need them, and what you’re willing to pay.
• Crafting the Job Description
  The staffing company creates a detailed job description that fits your needs and then spreads the word about the job. Sometimes, they even personally contact potential candidates who seem like a good match.
• Evaluating Candidates
  When people start applying for the job, the staffing organization carefully reviews their qualifications and experience. They might interview candidates to get a better sense of who’s the best fit. Then, they present the most promising candidates to you.
• Your Decision
  You still have the final say. That’s why, you get to interview the top candidates the staffing organization recommends. This way, you save time that you’d otherwise spend sifting through lots of applicants.
• Paperwork Help
  Many staffing agencies also handle the paperwork stuff, like contracts, taxes, and payroll tasks for new hires.
• Onboarding
  Contrast to a recruiting agency, a staffing company is usually responsible for those who thy hire. That’s why they provide the candidates with a proper onboarding process to make them seamlessly adapt to the role.
  

Basically, a staffing agency can make the process smoother and more efficient. They know how to find the right talent so you don’t have to stress about it.

2. How much does a staffing agency charge?

In a nutshell, the amount a staffing agency charges can vary, and it depends on what you and the agency agree upon. The main things that can affect the cost are:

• Number of Roles
  If you need to fill many positions, it might cost more.
• Services Needed
  Do you want the agency to do everything, like onboarding, or just help with interviews?

Generally, your company pays the agency a fee each month or year, in addition to the employee’s monthly salary. The usual rate is about 10% to 20% of the employee’s salary. For instance, let’s say you’ve agreed with the staffing agency on a 50% markup, and the new employee earns $10 per hour. In this case, you’ll be paying the agency $15 per hour for their services.

However, if the job is really hard to fill and needs special skills, you might have to pay up to 75% of the employee’s salary as agency fees.

Also, some agencies might charge extra fees for their services, like a finder’s fee or a headhunter’s fee. Aside from the markup, there might be extra charges, such as fees for filling the position or fees for converting a temporary worker into a permanent one if you decide to hire them permanently.

3. Best practices you need to know to work with a staffing agency the right way

Here are a bunch of recommendations based on our experience that we can give you to make your cooperation with a staffing agency the most efficient.

• Choose a reputable staffing company
  Prior to partnering with a staffing organization, it’s essential to select one that you can trust. First of all, a reputable staffing company often belongs to professional associations like ASA (American Staffing Association). Besides, membership in such associations ensures that the agency adheres to professional, ethical, and legal staffing practices. As a result, being part of ASA signifies that the agency is trustworthy and stays updated with industry best practices.
• Clearly communicate your needs
  Ensure that your chosen staffing agency comprehensively understands your specific requirements and the type of candidates you’re seeking. Are you in need of temporary staff or individuals for long-term positions? What skill sets are essential for the role? Is on-site presence necessary, or can they work remotely? Precise and transparent communication regarding your staffing needs enables the agency to efficiently and swiftly identify suitable candidates. Incomplete or ambiguous instructions can lead to delays or hiring individuals who don’t meet your requirements.
• Maintain compliance with employment laws
  When you hire through a staffing company, you enter into a co-employment arrangement, where both you and the agency share certain employment responsibilities. Obviously, this differs from direct hiring, where the employee reports solely to you as the employer without co-employment. So, understanding the legal aspects and potential risks associated with co-employment is crucial for avoiding complications in the future.

4. Wrapping Up

It’s up to you – to work with a staffing agency or not. We’ve already revealed what you need to consider before making such a decision. However, if you need to hire fast, to hire a lot, or to hire in niche – a staffing agency is a good solution. It helps with the entire recruitment process from job description to onboarding to ensure you get what you’re looking for. Whether it is a skill set or best cultural fit, a staffing company assists as a professional middleman between business needs and the right people to cover them.

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