Every business depends on its employees. Good employees will do good work and make your business better. On the other hand, bad employees can ruin you, so it’s important to find, hire, and train the right people for the job. But this can take a lot of time and cost a lot of money. When you don’t have that kind of resources to invest, what do you do? Luckily, there is a simple solution. Staffing agencies save you money and time, so their services are well worth considering.
Staffing agencies save you money by helping you find the right employees
Simply filling an open position is not enough because having the wrong person can be worse than having no one at all to do the work. So it’s essential to find the best hires when you’re looking for new employees. However, the process of weeding out the bad ones can cost you a lot. With staffing agencies, it becomes significantly more affordable.
Skip the background checks
Looking into the background of potential employees is a pretty standard practice in many industries. If you’re hiring someone to work in finance, healthcare, childcare, security, logistics, banking, and many other sectors, you’ll want to know about any brushes with the law they may have had in the past.
But checking this will cost you. Getting the records from national criminal databases comes with a price tag of $15. If you want to do a more thorough background check, the costs will go up. It doesn’t seem like much when you’re only looking at one person. However, you’ll need to run this check on every viable candidate. The costs will start adding up quickly.
When you hire a staffing agency, they run the checks instead. You can also turn to them with any questions you may have instead of sending your own employees on paid investigative work. You’ll still be sure you’re hiring suitable people without having to pay extra for that reassurance.
Select from a pool of suitable candidates
Whichever job opening you post, you’re bound to get dozens if not hundreds of applications. Some of them might not even fit your requirements – people often try their luck even at jobs they’re not qualified for. So you, or more likely one of your employees, will have to sift through all the applications, select appropriate candidates, and do either in-person or remote interviews with them before hiring them.
Not only does all this take time, but it also costs money: you need the employees doing this work on the payroll after all. They will be kept away from other tasks during all this, so in the meantime, you may need to approve overtime for the workers covering them.
When you work with a staffing agency, the entire process is much easier. The agency will only be selecting from a list of qualified candidates that they already know well. So it won’t take them long to find the perfect new employee for you. Not only that, but you’ll also have the opportunity to hire people temporarily so you can test how they fit into your company. All in all, you’ll fill the position quickly and yet, be certain you’ve gotten the right person for the job.
Staffing agencies save you money by lowering hiring costs
Hiring new people doesn’t come cheap. Between running ads, staffing an HR department, and investing resources in the screening and selection process, you’ll spend quite a bit before you ever sign the first paycheck of a new employee. Unless, of course, you opt for a staffing agency instead.
Eliminate upfront hiring costs
You don’t find the perfect employee for the position overnight. The process is, in fact, quite lengthy and starts with posting the listing in various places and advertising it to reach as many potential candidates as possible. This alone will already incur some costs. Then, there’s the selection process with the aforementioned costs of background checks and recruitment.
But if you can optimize the hiring process with the help of a staffing agency, you’ll significantly reduce and even eliminate the upfront hiring costs. Remember: you no longer need to advertise the job, screen the candidates, or conduct lengthy interviews. Instead, the staffing agency provides you with the right employees without significant investments on your part.
Decrease turnover costs
High employee turnover harms your business financially. To start with, you can count on expenses such as severance packages and unemployment benefits. Then, there’s the cost of frequent recruitment. Finally, you’ll need to organize training for new employees before they can become productive and start earning your business money.
So it is in your best interest to decrease turnover rates because this saves you money. Staffing agencies can help with this in two ways:
- they will know the state of the market and help you offer appropriate compensation – this way, employees won’t leave because they’re dissatisfied with the pay; and
- they will help find the right fit for your company – this ensures that you and the employees are on the same page from the start so new hires won’t leave because the position is not what they expected.
Get all the benefits of an HR department at no extra cost
You won’t be able to handle the recruitment process on your own, especially not if you’re looking for new employees frequently. Instead, you’ll need an HR department to take care of all the employment-related tasks. But keeping HR specialists on the payroll can be pricey.
On the other hand, if you find qualified employees through a staffing agency, you don’t need to worry about running an HR department. The staffing agency does all the heavy lifting for you. You’ll be getting all the benefits without any of the costs.
Staffing agencies save you money by reducing costs in the long run
Once you hire a new employee, the expenses don’t stop. You still need to train them and help them adapt to your team. This comes with costs of its own. Luckily, staffing agencies save you money even in this aspect.
Be more flexible with staffing
Businesses often have different employment needs at different times. As your business grows, it needs more employees. If you hit a rough patch, you may need to downsize. In some industries, you may have pronounced peak seasons when you need more employees but only temporarily. Finally, when you decide to move your business, you’ll need to prepare your employees for the relocation – some of them won’t follow to your new address, and you’ll need to replace them. If this happens frequently, the combined costs of moving and recruitment can be too much.
Staffing agencies allow you to be flexible with your staffing. They can provide you with temp workers; you can scale them up or down according to your needs without worrying about the costs of layoffs or recruitment. Simply fill as many positions as you need at the given time.
Reduce overtime
When you don’t have enough workers or don’t have the right workers, other employees need to pick up the slack. This can lead to them needing to work longer hours in order to get the job done. But that means more overtime hours that you need to pay for.
To prevent prolonged periods of increased overtime, work with a staffing agency. Hire qualified candidates quickly; get contractors for individual projects; work with temporary staff when you need to. All this will help you keep your business fully staffed at all times and thus reduce the amount of money you pay for overtime work.
Reduce training time
Every job requires training, no matter how menial. Some require more training than others: employees in finance and IT sectors, for example, may need to learn a whole new system before they can start working for you. This training takes time and money. And the longer it goes on for, the longer you need to wait for a competent employee.
But staffing agencies train and prepare candidates for you. Not only will they favor candidates already equipped for the work you need done, but they will also frequently provide cross-skilling and retraining to make their candidates more versatile and, therefore, more viable in the job market. So, odds are that you will get a new employee who can start almost immediately.
Reduce payroll expenses
When you hire people through a staffing agency, you don’t pay them directly. This means that you don’t have to deal with calculating paychecks, paying benefits, figuring out deductions, or keeping up with the latest rules and regulations. Instead, the staffing agency does this for you.
You can save a lot by relying on a staffing agency for employees. In fact, you can even eliminate payroll expenses if you hire people solely through a staffing agency.
Staffing agencies don’t just save you money – they help in other ways too
In addition to the many ways in which staffing agencies save you money, they benefit your business by making the recruitment and onboard faster, easier, and less stressful. You’ll always have reliable and qualified candidates on hand for any position, and you’ll be free to focus on other tasks instead. Your business can thrive, all thanks to a partnership with a quality staffing agency.
