Why Use a Staffing Agency?

1. You can rapidly ramp staff levels up and down when required.
2. You can stay focused on your core competencies.
3. They are constantly talking to actively looking candidates.
4. They can act as the employer of record and pay the employees for you.
5. They are experts at screening potential employees quickly.

How to Choose a Staffing Agency?

1. Ask recent hires which agencies provided an exceptional candidate experience.
2. Ask hiring managers who they have used and liked in the past.
3. Look for agencies constantly advertising roles in your market.
4. Use a panel of agencies and review it quarterly based on performance.
5. Be wary of extremely cheap agencies as candidate quality may not be up to your standards.

How Do Staffing Agencies Make Money?

In most cases, a staffing agency or temp employment agency is paid a fixed percentage fee based on the remuneration the candidate receives. This fee is paid by the employer, not the employee. 15-20% of the first year full-time salary is common for permanent roles. Hourly and temp worker fees vary from 3% to 200%+ depending on the role and engagement model.

How do temp agencies work?

Job temp agencies act as a 3rd party employer between the company providing the job and the temp employee. Temp agencies, or hiring agencies, handle remuneration, scheduling, complaints, taxes, and other administrative parts of the relationship.

Can small businesses benefit from job placement agencies?

Yes, job placement agencies, employee search firms, or staffing agencies can be especially helpful for a small company that may not have the time to handle HR tasks such as payroll, taxes, etc.