The origins of modern staffing agencies are traceable back to World War II. At that time, soldiers going off to war overseas left vacant positions of various sorts at home in the United States that needed to be filled. Yet, companies had difficulty matching available positions to employees with the proper skill sets. Staffing agencies soon began to pop up to assist with that issue on a temporary basis. The object was to fill positions quickly, but only for a short while until the original staff members theoretically would return to their positions. From that time to the present day, the industry has steadily grown and evolved. Today, there are more than 11,000 recruiting and staffing agencies in the United States placing job candidates in vacant positions of all types for varying periods of time, including permanently.
If you currently run a business, employing a staffing agencies to help you fill job vacancies within your company can benefit you in multiple ways. Likewise, a staffing agency can help you find work quickly, if you are a job seeker. At one time, staffing agencies, also called temp agencies, were primarily meant to help employers seeking to fill temporary positions find short-term employees. However, staffing agencies today offer multiple types of assistance, including permanent job placement. Here is what to expect when working with a staffing agency.
What Staffing Agencies Do
Staffing agencies are links between potential employees and employers. Companies pay for staffing agency services. Job applicants do not. It is up to the staffing agencies to match job candidates with positions for which they are qualified. Staff members perform that task by interviewing companies about their needs and carefully examining job applications for matching skill sets. Specific tasks performed by staffing agencies may include:
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Writing Job Descriptions
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Advertising Available Jobs
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Reviewing Credentials and Experience Levels of Job Candidates
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Completing Job-Related Paperwork (Tax Forms, Payroll, Contracts Etc.)
Types of Staffing Agencies
Some staffing agencies specialize in particular types of staffing. For example, there are agencies that specialize specifically in contract staffing. Contract staffing is the process of finding workers to fill temporary positions. Similarly, there are agencies that specialize in contract-to-hire staffing. That is temporary staffing for a period of time, after which the employers can decide what their next steps are. For example, employers might choose to retain the employees on a permanent basis, continue the short-term arrangement, or terminate employment when a short-term contract ends. A third option is direct hire staffing. Companies seeking to fill permanent positions can hire direct hire staffing companies to locate new recruits for permanent positions on their behalf.
Not all staffing agencies have specialties. Some can connect employers and employees, regardless of the short or long-term nature of the available positions. However, staffing agencies that specialize in a certain type of staffing are often most desirable to companies. Employees of such agencies are skilled at handling the exact staffing requirements such companies have.
Benefits of Staffing Agencies For Employers
Employers benefit from using staffing agencies in many ways, several of which are financial. Hiring temporary employees through staffing agencies during busy periods prevents the need to pay permanent employees for overtime. Temporary employees also do not require extra benefits, such as vacation pay or retirement plans. Non-monetary benefits of hiring temporary employees through a staffing agency include:
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Lowering Exhaustion or Burnout Risks for Permanent Staff Members
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Hiring Qualified Candidates to Avoid Training Time
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Using Staffing Agency Connections to Locate Qualified Workers Quickly
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Reducing Legal Risk Factors Associated with Employing Workers
Benefits of Staffing Agencies For Job Applicants
Staffing agencies favor employers more so than job applicants. They are paid by employers to locate the right candidates for certain positions. However, job applicants can still benefit in several ways. For instance, agency staff members do the job searching for applicants, which often saves time. Job applicants can also accept temporary positions and test them until they locate the positions that are best for them. Additionally, job applicants can stay on agency lists on a long-term basis. Therefore, they may receive excellent job offers even when they are not actively seeking new positions.
Staffing Agency Costs
It is typically free to use staffing agency services as a job seeker. Fees are only required if you are an employer seeking to fill positions within your company. The fees charged by staffing companies vary greatly, but expect to pay an additional 20 to 50 percent of the pay rate of the hired employee when you hire job applicants through a staffing agency. Factors like the following are used to calculate the exact fees charged by staffing agencies:
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Federal and State Fee Requirements
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Client Industries
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Demand for Specific Skills
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Fee Variations Based on Geographic Locations
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Desired Profit Markup of the Staffing Agency
Common Career Fields Served By Staffing Agencies
Staffing agencies can connect job seekers and employers in almost any field. However, certain fields benefit more from staffing agency assistance. In fact, those fields often have dedicated field-specific staffing agencies. For example, agencies like HealthTrust Workforce Solutions and All Medical Personnel connect healthcare professionals with job openings in that field. That service is essential for filling medical positions quickly while also making sure those positions are filled by qualified personnel. Medical staffing agencies remove pressure from the staff at hospitals and other medical facilities, who may not have the time or resources to fill positions on their own, especially during the current COVID-19 crisis.
Nurses, doctors, and \medical administrators are not the only job seekers who routinely use staffing agencies to find or fill positions. Companies and job seekers in any field requiring specialization usually benefit most from staffing agency assistance. Such fields include:
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Law
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Construction
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Information Technology (IT)
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Engineering
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Manufacturing
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Insurance
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Education
Using the Services of a Staffing Agency Near You
Prior to using the services of a staffing agency in your local area, you must verify the agency you choose is reliable. The agency must have experienced staff members, proper credentials, and references. Proof of proper insurance is also vital. Your chosen agency must also demonstrate reliable recruitment practices, such as carefully checking references. Meet with staff members to ask questions and discuss your requirements. Make sure you feel completely comfortable before working with your chosen agency.