TPI Staffing Blog

7 Reasons Why Companies Outsource Recruitment

July 30th, 2018
More and more companies are turning to staffing agencies to help find better quality candidates. Most businesses can use some extra help to handle an unexpected surge in production, new project, or unexpected business increase. Here are the top reasons why employers or hiring managers should use a staffing agency. 

Top Reasons Companies Should Use Staffing Agencies to Hire Job Seekers

Why Employers Should Utilize A Staffing Agency

No matter what industry you're in, utilizing staffing firms has a variety of benefits to offer- more qualified candidates, seasonal hiring flexibility, the ability to try out an employee before making a hiring commitment and more. Find out if working with a staffing agency might be the right fit for your company.

 

You'll save time.

Having an extra set of hands to review applications, interview candidates, negotiate salaries, background check, drug screen and process payroll all allow you more time to focus on your core business. By using a staffing agency to assist in your candidate search for new talent, the time-to-fill ratio can be cut down by over 80%. Say goodbye to reviewing thousands of unqualified applications, staffing services only present qualified candidates to you that match your specific requirements for the job opening. Staffing services can lower costs, improve focus, and reduce the risk of not finding qualified candidates.


You'll save money.

It’s simple -- better quality employees means less turnover and more sales. Imagine if your team could focus 100% on your high priority tasks, and leave the hiring process up to industry specialists. Utilizing temporary employees to supplement your full time staff can save your business time and money. While there are costs associated with temporary employees, in-comparison, temps cost much less than full time employees. 

 

Cost of a Full-Time Employee or New Hire

There are numerous up-front and hidden costs associated with full time hires. Expenses such as training, medical/dental/life insurance, paid vacation, sick time, worker’s compensation, payroll, profit sharing, 401K matching, among several others depending on your company, all play a factor into the cost analysis. Benefits and taxes are among the top costs of full time employees. One of the best reasons for utilizing a staffing agency is that your company is not responsible for providing these benefits.

 

Cost of a Temporary Employee

In-comparison, temps cost much less than full time employees. Temporary employees only work when you need them, so you only pay for the hours worked or until the assignment is completed. 

Temporary employees have fewer distractions and as a result lose far less of their work hours. Statistics show that full-time employees spend as much as 25% of their work day on non-productive tasks like mandatory meetings and water cooler talk.

Rather than bring in additional staff, many employers believe it's cheaper to push current staff harder, and pay overtime costs, when in reality, it's the most expensive option of all. If you have an increase in production, extending shift hours, or a temporary need, the most cost-effective solution is to use temporary personnel.

 

You'll get access to a wider range of candidates.

Temporary agencies work with job seekers who are flexible to work different assignment types and hiring options- temporary, temp-to-hire and direct hire. Staffing agencies recruit both active and passive job seekers, which in turn, opens up the candidate pool.

 

Easy way to build a better pipeline.

By partnering with a staffing company, you can build a strong talent pipeline to ensure you have the right people in order to grow your business. Staffing agencies offer full-service employment solutions to make managing your workforce easier, offering a variety of recruiting and screening services.

 

You'll hire employees only when you need them.

Whether you have an unexpected increase in business activity, need to fill a temporary vacancy, or require candidates with specialized knowledge to complete a special project, find a staffing agency that offers a variety of services to meet your individual needs.

 

Perfect alternative to downsizing.

Payroll solutions can be a perfect alternative to downsizing. Many businesses choose not to bring on an employee as a company hire, but rather “payroll” the employee through a staffing agency or PEO. That means that the staffing agency is the employer of record and manages all payroll expenses such as taxes, unemployment, workers' compensation, insurance deductions and W-2.  It’s that simple!

 

Lindsey Campbell TPI Staffing Regional Sales Coordinator Texas Staffing Agency-1

You'll have a Personal Sales Rep and Recruiter working around the clock to fill your job opening. Talk to a TPI Sales Rep today! 

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Interested in learning more about how to get started with a staffing agency? Download our Free Employers Guide to Staffing for additional information about the staffing world.

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