15 Reasons: Why Do Companies Hire Through Staffing Agencies? (2024)

Employers turn to staffing agencies to recruit candidates on their behalf for several reasons. Below are 15 answers to the question, “Why use a staffing agency?”

1. Reduce Overtime Needs

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Employees generally have full schedules. Sometimes, companies might choose to bring in a contract employee through a tech staffing agency to help alleviate overtime demands on the workforce. Additionally, if the position is hourly, companies can save on overtime costs.

2. Meet Needs for Temporary Staff

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Companies may prefer to hire temporary staff to support a project during times of increased work volume or for seasonal work, such as during the holidays. IT staffing agencies can also provide short-term staff for when an employee might go out on leave for maternity or other reasons.

3. Reduce Overhead Costs

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Full-time, permanent employees require salary payment and typically qualify for benefits, including medical, paid time off, and retirement plans. When employers use a staffing agency to fill their needs using temps, they don’t incur the overhead of paying these types of benefits.

4. Fill Immediate Needs

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Staffing agencies have a stable of candidates. As a result, they allow employers to fill immediate needs more quickly than going through the entire hiring process on their own.

5. Increase ROI

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When companies need staffing specialists for short-term needs, working with a specialist through a staffing firm vs. hiring one in-house often delivers a better return on investment.

6. Save Time

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Hiring candidates takes time. Working with a staffing firm, even for a harder-to-fill position, can save a company time in the long run.

7. Lack of Internal Resources

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Smaller companies, in particular, might not have the resources to effectively and efficiently hire during certain periods, making a staffing firm an ideal solution. Some companies might continue working with a staffing firm in lieu of hiring an internal recruiter, as well, especially if they don’t hire regularly.

8. Reduce Hiring Risks

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When employers aren’t seeking a permanent placement, a staffing firm is ideal for helping them avoid the significant investment and costs of hiring and training a temporary employee. Staffing firms can provide candidates who are ready to hit the ground running and work through until the project is complete.

9. Broader Access to Talent Networks

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A reputable and stable staffing agency has built up its talent network through years of experience, networking, and referrals. When employers go to the staffing agency for the types of candidates they work with, they can typically receive a list of qualified candidates within 24 to 48 hours.

10. Hard-to-Fill Positions

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Since staffing firms tend to have a list of active and passive candidates with specialized skills ready to go, they can support companies with even difficult-to-fill positions, such as those found in the internet technology and engineering fields. A staffing specialist can also step in when the employer’s efforts have not achieved the desired results.

11. Outsource Onboarding and Payroll

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Staffing agencies handle the onboarding and payroll of temporary employees who work for their clients, which is a significant benefit of working with staffing firms.

12. Test Out Candidates

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Turnover is costly for employers. Being able to try out an employee through a staffing firm allows the employer and candidate to determine if there’s truly a good fit before making the commitment to hire.

13. Industry Knowledge and Expertise

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Working with a staffing firm provides employers with insider knowledge about active and passive skilled candidates.

14. Stress Reduction

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Recruiting top talent can bring about a lot of undue stress, particularly for small and medium-sized firms that don’t have internal staffing departments. A staffing firm can help alleviate some of that stress.

15. Fill Needs During High Volume or Growth

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Staffing firms are the ideal solution for organizations that need additional staff during times of high volume or growth that will eventually subside.

15 Reasons: Why Do Companies Hire Through Staffing Agencies? (2024)
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