How do staffing agencies work?

Posted January 21, 2014

Whether you call it a staffing agency, temp agency or recruiting firm, they all share the same purpose: you hire them to help with your staffing needs. They find people to fill all kinds of jobs, from temporary to full-time, in a number of career fields. Whether you need a nurse, an administrative assistant, a manager or a carpenter, the right agency can find the right employee.

Could using a staffing agency be right for you? How do they work?

  • The details will vary from agency to agency, but the typical staffing agency handles hiring, as well as employment taxes such as payroll, Medicare and Social Security.
  • As the hiring employer, at the very least you would have to specify the number of workers needed, the time period they are needed for and negotiate an hourly rate.
  • If you are looking to hire someone for more than a few days, you will want to give the agency more information, including what kind of personality will best fit into your organization.
  • A good staffing agency will maintain its own extensive internal database of applicants. When they need to fill a position for a client, they begin by searching their database in order to identify potentially qualified and screened candidates before moving on to other avenues. If they specialize in a particular industry or region, they often have top candidates ready to work on short notice.
  • Most agencies offer three types of hiring options: temporary, temp-to-hire and direct. If a candidate is hired on a temporary or temp-to-hire basis, s/he is an employee of the staffing agency, and the agency pays the employee’s wages for the duration of the assignment—the employer/ client pays the staffing agency. If a candidate is hired directly by the employer from the onset, the agency will charge the employer a one-time fee based upon the candidate’s position, level and first-year compensation. If the employer elects to hire the employee on a permanent basis, the employer then takes that employee onto their payroll.
  • As an employer, you can choose whether you want to interview candidates yourself before taking them into your company.

What are some of the benefits to you, the employer, when using a staffing agency?

  • Temporary workers typically do not receive fringe benefits, such as health insurance and retirement plans
  • Temp workers tend to need less training since they are sent to the company because they already possess certain skills.
  • Companies can also avoid many wrongful termination suits by using a staffing agency.

The three biggest benefits? Using a staffing agency saves you money and time and gives you flexibility. You can staff up during busy times and cut down during slower periods, adjusting your workforce to meet your changing needs.

Want to know more? Call Team Ambassador any time, or visit our website to learn more about what we can do for you. We pride ourselves on our dedication to our clients and on our long-term relationships with some of the best companies in the Southeast. If you are looking for staffing agencies, contact us today.