Scared of Using a Staffing Firm to Hire New Staff? Fear no more!

Halloween may be the season for spooks and scares, but for some companies, the idea of using a staffing firm to hire new staff can be equally hair-raising. While staffing firms can be a valuable resource for finding top talent, there are some perceived concerns that make certain companies hesitant to embrace this approach. Don’t let these misconceptions haunt you. Instead, let’s dive into the eerie world of hiring and explore the most common fears behind this hesitation.

The Fear of Losing Control

One of the main reasons some companies shy away from staffing firms is the fear of relinquishing control. When a company hires directly, they can carefully curate the entire recruitment process, from crafting job descriptions to conducting interviews. Using a staffing firm can feel like entrusting your hiring process to an external entity, potentially leading to concerns about the quality of candidates presented. Companies may dread the thought of losing control over the hiring process, especially if they believe that the staffing firm doesn’t fully understand their unique culture and needs.

In reality, choosing the right staffing partner can help you craft a simpler, more manageable hiring process. Since staffing firms spend all day, every day engaged in activities like sourcing, vetting, interviewing, hiring and onboarding, most have it down pat. By delegating these time-consuming tasks to an agency, your team is free to focus on other initiatives.

The Cost Factor Fear

Budgets are a perpetual source of anxiety for businesses, and the perceived cost of using a staffing firm can be enough to send shivers down an HR executive’s spine. Some companies believe that the fees associated with staffing agencies are too high, which may make them hesitant to use these services. They fear that the investment in a staffing firm may not provide a sufficient return on investment, and this can deter them from exploring this hiring avenue, even though it can be a cost-effective approach in the long run.

While it’s true that employers do have to pay for the services of a staffing partner, it’s also true that a good staffing partner can actually save you money. Here are a few ways:

  • Reducing Benefits Expenses: A recent LinkedIn article noted that employee benefits are usually 30-35% of their payroll. Eliminate these expenses by using temporary or contingent workers paid through a staffing firm.
  • Supplementing Full-Time Staff: Many companies face bandwidth and/or skills gap issues with their permanent staff. Looking to temporary or specialized contractors to manage routine tasks or fill unique talent needs addresses these needs efficiently.
  • Reduced Turnover Costs: The Society for Human Resource Management (SHRM) maintains that on average it costs a company 6 to 9 months of an employee’s salary to replace them. For an employee making $60,000 per year, that comes out to $30,000 – $45,000 in recruiting and training costs. Using a staffing partner lowers upfront costs and most offer some form of guarantee or backfill policy in the event a new hire leaves or doesn’t work out.

The Fear of Misaligned Candidates

A common worry that keeps companies up at night is the possibility of receiving candidates who aren’t a good fit for their organization. It can be frightening to think that a staffing firm might present candidates who don’t align with the company culture or job requirements. Companies may have concerns that the hiring process will be less personalized, potentially leading to the hiring of candidates who are not a good match for their company’s unique needs.

At Sherpa, and any good staffing agency, honest and open communication is a huge part of the partnership process. If you’re talking to potential staffing partners and they don’t ask about your company culture, that could be a red flag. Keep in mind, however, that an agency who wants to earn your business and keep it is going to go the extra mile to learn about your business and present only the right fits of talent to opportunity.

While the above fears are real for some businesses, it’s essential to remember that staffing firms can offer a wide range of benefits, including time savings, access to a larger talent pool, and specialized expertise in recruitment. Mitigate these fears by carefully selecting a reputable staffing firm that understands their industry and culture. By establishing open communication, setting expectations, and working closely with the staffing agency, companies can harness the benefits of staffing firms while addressing these concerns.

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Sherpa LLC