If you’re on the hunt for a new job or searching for the perfect addition to your team, you’re probably considering all potential recruiting options. One avenue you might explore is partnering with an employment agency, also known as a staffing agency.
But what exactly is a staffing agency, and how does it operate? Let me break it down in simple terms to help you decide if collaborating with one is the right move for you or your company.
What is an Employment Agency?
An employment agency can go by many names: staffing agency, job agency, temp agency, or recruiting firm. Regardless of the title, they all serve the same fundamental purpose—to connect job seekers with companies that need their skills.
Agencies exist across virtually every industry you can think of. Many specialize in specific niches, such as technology placements or recruiting executive-level talent. Some focus on a particular geographic area, while others concentrate on filling specific job titles.
It’s important to know that not every employment agency is a good fit for every candidate or company, even if you’re in the same industry or local market. Finding the right agency is like finding the right job—it might take a few tries. Before committing, make sure the partnership feels like a good fit for both parties. As I’ve told every 4 Corner Resources prospect for nearly twenty years, we’re not right for every employer or job candidate, and not every employer or job candidate is right for us…and that’s OK.
How Does it Work?
First, it’s important to know that the candidates don’t pay a fee to work with an employment agency. Instead, the employer with the hiring need compensates the agency for their professional services. Agencies typically invoice their clients in one of two ways: through contract employment or direct (permanent) placement.
Contract Employment: In this scenario, the agency identifies, recruits, and provides workers for temporary positions within a client company. These workers remain employees of the agency for the duration of their contract, which may or may not have a set end date. The agency pays the contract workers an hourly rate and invoices the client at a higher, marked-up amount.
Direct Placement: Here, the agency is responsible for sourcing candidates, conducting preliminary interviews, and presenting the most qualified applicant(s) to their client. The client company usually handles the final interviews and selection process. Once a candidate is chosen, they become a direct employee of the client company, not the agency. They’re typically offered a full benefits package as part of their permanent employment. The agency’s fee is usually a percentage of the candidate’s annual salary, paid once they begin working.
Why Would an Employer Pay to Work With a Staffing Agency?
Because it often saves the employer money in the long run by lowering the upfront cost of hiring and freeing up resources that produce revenue.
The average cost to hire a staff-level employee is around $4,425, skyrocketing to nearly $15,000 for executives. Every day a position remains unfilled can incur hard costs, soft costs, and lost opportunities. Companies can control and predict their hiring expenses by outsourcing the hiring process to an employment agency for a one-time fee upon hire.
Time and effort are also significant factors. For example, small business owners might spend about 40% of their time on non-revenue-generating activities like hiring. By delegating these tasks to a staffing agency, they can focus more on driving business growth.
Related: Cost of Vacancy: Definition & How to Calculate it
How Involved is an Employment Agency in the Hiring Process?
The short answer is: as much as you want them to be.
A full-service staffing agency can handle every phase of the hiring process, including building the job description, sourcing candidates, conducting pre-interview screenings, performing final interviews, and even making job offers.
Typically, the employment agency will deliver the top contenders to the company for review, follow-up interviews, and the final hiring decision. The agency’s level of involvement is one of the things you’ll want to discuss during your initial meetings to ensure you’re both on the same page about roles and responsibilities.
Pros of Using an Employment Agency
Employment agencies can be a game-changer for companies aiming to streamline their hiring process. They bring a wealth of expertise and a vast network of candidates, making the search for the right talent more efficient and effective.
A high-quality agency will excel at understanding a company’s specific needs and culture, which allows them to find candidates who not only have the necessary skills but also fit well within the team. This approach can save valuable time and resources, especially for roles requiring niche skills, where agencies tap into their extensive pool of candidates to reach talent companies might not find on their own.
Additionally, with options like contract staffing, businesses can flexibly scale their workforce to meet project demands and seasonal fluctuations without the long-term commitment of hiring an employee directly.
Ideally, the agency becomes an extension of a company’s HR department, aligning staffing solutions with business goals.
Cons of Using an Employment Agency
While the benefits of using an agency are many, there are potential drawbacks to consider.
Mismatched Expectations: Despite an agency’s expertise, there’s always a chance that a candidate might not work out. To minimize this risk, it’s essential to choose a staffing partner with a solid reputation for diligence and consistent success. While agencies can save time and effort in the recruitment process, the services aren’t free, which can be a barrier for smaller businesses or startups operating on tight budgets.
Cost: Agencies provide valuable services, but they aren’t free. The fees can be a barrier for smaller businesses or startups operating on tight budgets.
Control: Some companies prefer to oversee every stage of the hiring process directly. Partnering with an agency means relinquishing some of that control.
What an Employment Agency Does for Candidates
Matches Your Skills and Culture Fit: During your initial session with an employment agency, the recruiter will ask numerous questions to understand you beyond your resume. Their goal is to match you with a job that not only utilizes your skills but also aligns with your long-term career satisfaction.
Strengthens Your Chances of Landing the Job: Agencies can help polish your resume and prepare you for interviews. They often have inside information about what the company is specifically looking for, giving you an edge.
Gives You Access to More Job Opportunities: Agencies often know about positions that aren’t publicly advertised. By working with one, you gain access to these hidden opportunities.
Assists with Negotiations: When you’re close to landing a job, your recruiter can help negotiate terms like salary. They stay updated on industry standards and market trends, ensuring you receive a fair offer.
Staffing your team doesn’t have to be hard.
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What an Employment Agency Does for Employers
Creates Stronger Job Descriptions: Agencies can write a job description that will attract the best candidates and rank well in search results. They know how to communicate the job requirements effectively while selling your company to potential candidates.
Sources Candidates Faster: If you need to fill a position quickly, an agency can be invaluable. They have established pipelines and relationships to tap into, speeding up the hiring process.
Asks the Right Questions: Knowing what to ask can be challenging if you’re hiring for a role outside your expertise. Agency recruiters specialize in specific industries and can assess candidates’ technical skills accurately.
Connects You with Passive Candidates: Agencies maintain relationships with high-performing individuals who aren’t actively job hunting. They can present opportunities to these passive candidates, who might be the perfect fit for your team.
Let’s Talk About Your Staffing Needs
The easiest way to determine if a staffing agency is right for you is to have a conversation and see how it feels. At 4 Corner Resources, we’re a nationally recognized employment firm connecting candidates with opportunities in technology, finance, marketing, customer service, and healthcare.
Our primary focus is building strong relationships with our clients and candidates to generate the best recruiting results for everyone involved. We’re not a massive firm juggling countless positions; our recruiters take on fewer roles to give maximum attention to each one.
We’re eager to answer your questions and explore whether working with a staffing firm fits your needs. Contact us to schedule your complimentary consultation today.
