Monday, 23 January 2017

Why companies use staffing agencies instead of hiring directly?

Staffing agencies are private firms that work for a company and provide a large number of candidates. These agencies, basing on the criteria and Job description provided by the company do head hunting and source the candidates through various means like advertisement, job sites, job fairs, other websites and even through social media like Facebook.
Finding talent is always a big challenge for many small-scale companies. The process of hiring - reviewing the applications, interviewing candidates and work out salaries, take important time from the owner of the company ending up losing on precious time, which could hurt the company in the long run. That's why more and more companies are looking for staffing agencies to outsource their employment woes and are partnering or totally outsourcing the process to cut out on the time taking process of talent search.

In business time is money. When it comes to business or a company, for a major job, there would a lot of process in hiring an employee. That's why the companies to reduce the effort and time involved use the services of staffing agencies. When it is for a good job in a good company, imagine a lot of people applying, would mean lot of resumes. These resumes have to screened, potential candidates selected for interviews,  then called and arranged for one-to-one interview in deciding to hire or not.

All this process involves both time and cost which few companies would try to avoid and hence approach staffing agencies. Let us know in details why the employers approach staffing agencies:


These days, companies do not have enough time to follow the recruitment cycle of giving a job ad, selecting potential resumes, screening them, conducting interviews and selecting them. Instead they outsource it to a major HR firm, that does all these functions effectively. So, when you approach such staffing firm, you have an advantage of getting hired with such firms who rely on them. Sometimes few employers do not know much about the job they want to fill. That is when a specialized recruitment agency may come in handy. Also, with the expertise and experience that the staffing agencies carry, they are more efficient in sourcing candidate, than the in-house HR department of a company.

Saves Cost & Time:
Employers hire through staffing agencies, as mentioned above to cut cost and the time of hiring processes. Most of the companies, except few who have their own in-house HR services, outsource the part of recruitment processes like per-employment calls, testing, background checks, screening and selection processes and even drug and health screening.

In the present market scenario of high unemployment, if the job opening is available for a good and well paid job, it is obvious that a lot of candidates would apply, which means a lot of resumes will be received by the employer. So, the HR services need to follow routine of going through all those resumes, select potential resumes, call them for interview and then conduct the round of interviews which is very time-consuming and involves lot of cost as well.

As this whole process is being passed on to a staffing agencies who are specialized in conducting these activities, the company can cut down on costs and use this time productively for it's other business activities.

Quick Hiring:
The job market has increased majorly and it is not the same as it was few years back. The candidates have got upper hand now. It is difficult and longer process to hire now these days than in older days. Hence, the businesses are increasingly relying on hiring agencies than finding a right employee. Also, if it is a high level job normally, they are not advertised and are recruited through few major staffing agencies.

Connections & Network:
Staffing agencies have good contacts in industries and companies that a candidate may not be aware of.  A staffing agency has huge database of applicants and prospective employees with varied talent pool and skills. Not only do agencies have a vast database, they also have a huge network of employers, that can be a source of opportunities for employees.

While the in-house HRs of a company are normally in touch with only one group of people and have only the needed expertise, the staffing agencies have broader reach in terms of connections it has. It also is aware of what is the current trend of technology, how the technology is changing and what kind of candidates are required to be hired for a company keeping in view the technological advances in a field.

This is where the candidates should take advantage of and use the expertise and experience of staffing agencies in using it's leverage to get hired. Also, few employment agencies have specialists in hiring for certain field or for a company.

Specialized Recruitment:

Few specialize recruitment firms hire for few sectors like IT staffing and they have the latest recruitment and market information about their sector. Moreover, they can provide useful interview tips and aid you in preparing for interviews. Their prowess in the field of specialization  makes sure you get the latest and best opportunities in the market. Also, they being depending on you and having a stake in your success makes it much easier for you to prepare for interview. Because their reputation greatly depends on the placing good candidates to employers; It’s in their best interest to prepare you well for a potential job.

Reduced Risk:
Being an employer is not easy, as there are a lot of legal responsibilities involved, like covering some taxes, contribute insurance coverage and ensuing labor laws. There are also financial and operational risk, like when an employee leaves unexpectedly. These liabilities can be reduced when an employer use a staffing firm.

Few other important reasons are as shown below:

  1. Specialized recruiters are much better at head hunting job seekers and have relatively more patience in doing it.
  2. A staffing firm can help you hire temporary employees, permanent employee, part-time employees as well. Hence as a company, you can achieve all your goals related to employment through a staffing agency for any kind of employee. Also, you can hire those contract employees and offer them permanent job if you feel they are competent enough.
  3. Few staffing agencies specially recruit for a company as they understand their requirements very well along with the company's culture and nature of business. Hence, by approaching such staffing firms, companies get the best candidates that are to fit to get acquainted with them as the staffing agency is well aware of their needs.
  4. Staffing agencies cover both the active and passive employment market. This will help them raise the overall quality level of hiring, which could be very productive for the company in the long run.
  5. Third party staffing agencies really understand what your job needs are and so employ people who can really get going soon. Being industry specialists, they understand the real job needs, as well as the hiring manager needs.

We, Radiant Systems is a leading IT consultancy and recruitment company providing staffing services. We are spread across the US, UK, Canada, Belgium, Netherlands, Switzerland etc,.
If you are looking for a job opportunity or would like to refer candidates or friends please submit resume by clicking here. We are offering referral and earn program as well, by which you can refer your friend earn money. please check the above link for more or check our company profile.