Can a staffing company help your business?

August 10, 2022


As a business owner or employer, you likely already know the struggles associated with hiring, scheduling, training and turnover. You may be wondering if there’s any way to take care of these responsibilities so you can focus on the business itself. With staffing agencies, this is possible.

Staffing agencies help fill positions for temporary and contract roles, typically for short-term work assignments. This usually comes in handy when a role is vacant because of short-term leave, maternity leave or a period of high demand within the company. It’s slightly different from a recruiting company (though some companies do both), in that recruiting is typically focused on putting people in more permanent jobs that match a particular skill.

Using a staffing agency provides flexibility and reduced risk. The flexibility comes in because it allows employers to fill jobs temporarily, without hiring full time. This gives them the ability to see what works when it comes to operations. It also provides the ability to see if someone is a good fit and ultimately bring them on full time.

The reduced risk comes in the fact that the staffing agency typically takes on the responsibility and liability of the employee. The agency takes on the financial risks of someone being fired or quitting, insurance coverage, and even labor laws. This can be a major value add for a company looking to be more hands-off in regard to their employees.

From the years 2000-2020 there were 13.6 million annual temporary and contract staffing employees, according to Statista. The same report shows staffing industry revenue of $137.95 billion.

However, staffing agencies can’t fill just any position, and there are some things to keep in mind if you decide to take this route. Typically these positions being filled don’t require a high skill set, meaning someone could drop in and pick up the job quickly. So for a job that requires a period of onboarding or that needs certifications or expertise, this may not be the right fit (unless it is an agency that specializes in that).

There’s also an extra cost associated with them. Staffing agencies do typically charge a markup from 25%-100% of the employee’s wages, according to Business News Daily. The example given shows that if the markup is 50% and the employee is paid an hourly wage of $10, you pay the agency $15 an hour for their work. There are sometimes other fees as well. As a business owner, you need to determine if this markup is commensurate with the cost of advertising the position, reviewing resumes, interviewing, and hiring. When hiring multiple positions, especially temporary or low-skill roles, this cost is often seen as worthwhile, as it allows you to focus on the day-to-day aspects of the business and allows the employees to operate smoothly.

So can a staffing agency help your business? It all depends on your business or company and specific situation, but many find them helpful and rewarding.