5 Reasons to Hire a Staffing Company vs. Hiring a Direct Employee

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Summit PA Staffing AgencyMost small business owners are not aware of the tremendous benefits of leveraging the services of a staffing company.  Many owners have a vague recollection of working with a temp in their corporate life in a larger company but are unaware of how staffing companies can help their smaller enterprises.

Business owners who have discovered the many advantages of using a staffing agency are reaping the benefits of costs savings, work force flexibility, better access to top talent, less administrative work, and a better engaged workforce.

Here are 5 reasons why you should hire a staffing agency like Summit PA Services:

1) Expertise
Staffing agencies often have a level of expertise that far exceeds the human resources departments in most small businesses.  The agencies are more in tune with employment trends, law changes, and recruitment best practices because this is their core business.

2) Better Talent Pool
Many smaller employers cannot compete with the larger businesses when it comes to pay, benefits, and recruitment tactics.  As a result, they are left out of consideration by top performing talent.   Staffing companies bridge the gap by leveraging their larger buying power and transferring those benefits to their clients.

3) Cost Savings
Using a staffing company is a cost effective option for certain processes and positions within your company. Your cost savings will be realized by

  • Efficiency:  Recruiting, screening and hiring a candidate takes a lot of time. Delegating these tasks to an expert will reduce the amount of time and expenses you spend on the hiring process. Hiring a staffing agency will also allow you to onboard your new team member quickly and reduce down time.
  • Advertising dollars:  Recruiting for top talent takes an investment in advertising dollars to reach your talent pool.  Staffing companies have already set aside advertising dollars for recruiting and are already reaching the talent you need. You can leverage their dollars and save yours.
  • Convert Fixed Costs to Variable Costs: For some positions in your company you could save money by converting your “Fixed Employee Cost” to Variable Employee Cost” for example, if your business has very little room for overhead costs but you still need employees to respond to customer orders.  You could use a staffing agency only when you had orders to fill.  Even though you pay a markup on the hourly rate you wouldn’t have to carry the fixed employee costs when you didn’t have the work.

4) Reduce Risk
When you engage the services of a staffing firm, you get the talent but not the HR overhead.  The employee reports to you but you have no liability for workman’s comp, payroll taxes and unemployment claims.  Hiring a staffing agency employee is also a better protection than hiring an independent contractor especially if that independent contractors is a one-man show.

5) Flexibility
Larger companies are already taking advantage of using contingent workforce to ramp up or down. As a small business owner you can use the agency’s employees as much or little as you need and have the flexibility to discontinue them once your work is complete. During slower times of the year you can downsize without going through painful layoffs. During busy times you will have access to great workers who can fill a vacancy in a matter of days.

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About Summit PA
  • Barbara Saunders

    And to take advantage of independent contractors by depriving them of their actual independence!