Why Should A Company Use A Temp Agency When Hiring?

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Temp AgencyHave you wondering why you should use a temp agency when hiring new employees? If you are looking for talented personnel to staff your new business or your growing benefits, it is important to research all of your options. The hiring process can be an expensive one, and staffing agencies can help you cut the costs, so that you do not have to pay more out of pocket when you are unable to retain a new hire. If you are not familiar with the benefits that temp agencies have to offer, you need to familiarize yourself with the process first. Read on, and learn why smart business owners are turning to temp agencies.

How Does Temp Agency Staffing Work?

If you contract with a temp agency, the agency will work for you to find talent. You will give them your qualifications, and the hiring manager will scout candidates who possess your needed skills. Once they identify candidates that are a great match for open positions, the temp agency will assign the temporary employee to work for your company. You will be in charge of training and can contact your staffing agency manager if you are not happy with the employee’s performance. If you would like a new staff member to be sent to you, assignments will change and you can work with a new worker who may be a better fit for the company.

What Are the Many Benefits of Working with a Temp Agency?

One of the biggest benefits of leaving the recruiting to a staff agency is improved productivity. By letting a staffing agency recruit, you can allow your workers to focus their efforts on other core functions in the office. You can also use the temporary workers that are recruited to increase productivity by decreasing burnout that is caused when an office is understaffed.

The overhead costs associated with hiring an employee are very high. In fact, studies show that the cost to hire a skilled worker is about 150 percent of the person’s salad, according to¬†Dun and Bradstreet. When you entrust a firm to do the recruiting and the interviewing, you can cut costs and pass the burden on to specialists. You are also cutting your overall costs for payroll taxes, workers compensation insurance and benefits, because the employees are technically employed by the staffing agency and not your company. If you find an asset that you must keep, you have the option of hiring them on after a specified period of time.

Many people do not think about how costly unemployment claims can be when they are running a new business. After an employee is let go and you see how unemployment claims can affect your bottom line, you start to look for solutions. One solution is temporary staffing. Because the employee does not work directly for you, they cannot file an unemployment claim against your company if let go.

Related Resource: Insuring Your Business

When you hire an employee, you are making a full-time and long-term commitment to that employee. You must cover the employee when they are gone on vacation or disability leave, and you must file payroll taxes every year. Some find that not making this commitment is easier and more beneficial to the company. Price rates and decide if you should use a temp agency when hiring.

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