A report by ManpowerGroup shared that 69% of U.S. Employers struggle to find technical positions, especially in high-demand fields such as machine learning and mobile development. It’s at this point that many businesses choose to engage with staffing agencies. But what is a staffing agency, and what does it have to offer you both as employer and employee?
A staffing agency, also known as a recruitment agency, is a third-party organization that helps companies find suitable candidates to fill job vacancies. They work as intermediaries between employers (client companies) and job seekers (candidates), providing services to match the right talent with the right job opportunities. They usually have a bank of pre-screened candidates to discuss your role with, and they will also be able to source more suitable candidates if they don’t have the right person on board.
Career Builder revealed that 77% of millennial clients plan to increase their use of staffing companies in the next five years. Staffing agencies are partners for both sides of the employment equation, and in essence, they can offer you two key things on the employer side: their experience in recruiting and their database of candidates. On the candidate side, they are professionals who help candidates position themselves properly and find jobs that are not always available on the open market.
In the most simplistic way, staffing agencies are bridges to the employment market. They make hiring easier for employers, and they allow candidates to find jobs that they would not have otherwise found.
But it’s important to know that different staffing agencies offer different solutions. They differ significantly in their areas of expertise, the quality of their talent pool, and their recruitment methodologies.
Choosing the right agency that fits the specific requirements of your business is crucial. Whether you need industry expertise, a wide variety of candidates, or a more efficient hiring process, a staffing agency can be a valuable partner to help your company succeed in today’s employment market.
This guide will walk you through what a staffing agency is, how one can help your business, and how to choose one. We’ll outline the main benefits of using staffing agencies to hire, including recruitment expertise and access to candidate databases, as well as the factors to consider when choosing one.
How Does a Staffing Firm Operate?
A staffing firm is a company you hire to find, vet, and match candidates with your business. Here’s how the partnership process looks like:
1. You Contact the Agency
The first step is to let the agency know that you have a vacancy coming up. They will want some basic details of the role, including responsibilities, any requirements you have, and your timeline for finding the right person.
2. Job Description
Placement agencies will develop your requirements into a job description that they will use to advertise your vacancy. Your internal job description can be used as a basis for that, but a good recruiter will want to rewrite it to appeal to the right candidates.
3. The Role is Advertised
This is where the agency really earns their money as they put your advert in front of the right candidate.
This could be through:
– Calling potential candidates who are registered with them – most agencies maintain databases with hundreds of candidates.
– Adding a listing to Jobs boards
– Promoting the opening via their social media
– Head-hunting suitable candidates
4. They Create the Shortlist
The agency will then vet any candidates who apply, checking them against the job profile. A good agency will also have gained a grasp of your company culture and the personality types at play, so they’re presenting you with candidates who really fit.
It’s at this point any vetting needed will take place, for example, checking skills or certifications.
5. You Decide Who to Interview
You then get to review the shortlist and decide which candidates you’d like to talk to more fully. You let the agency know, and they make the arrangements.
6. Make a Decision
Once you’ve made your choice, you let the agency know, and they will talk to all the candidates, both successful and unsuccessful, and give them feedback on what went well and what didn’t.
7. HR
You’ll need to do all the relevant paperwork to get the new employee on the books. If you’re hiring a remote employee this can be complicated by international tax laws, so your staffing agency may take care of this for you by becoming the ‘employee of record’.
8. Onboarding
The agency will then support you through the onboarding process, making sure that you have a seamless experience with your new hire.
5 Pros of Using Staffing Agencies as an Employer
Partnering with a staffing agency for technical hires allows companies to save time and streamline project needs. Often, they already have pre-vetted candidates available or possess the expertise to quickly identify the necessary skills for a project.In fact, according to Gitnux, 90% of businesses worldwide use talent acquisition agencies to some extent. Companies that have already worked with recruitment agencies for engineering and technical profiles list these as some of the most important benefits.
1. Access to a Wide Database of Experienced Engineers
Staffing agencies maintain extensive networks of specialized tech professionals, including full-stack developers proficient in MERN (MongoDB, Express.js, React, Node.js) or MEAN (MongoDB, Express.js, Angular, Node.js) stacks, data scientists skilled in Python, R, and machine learning frameworks like TensorFlow and PyTorch, and cybersecurity experts versed in penetration testing and threat analysis.
This diverse talent pool encompasses professionals with expertise in emerging technologies such as blockchain (e.g., Solidity for Ethereum development), quantum computing, and edge computing, as well as niche programming languages like Rust, Elixir, or Haskell, and industry-specific platforms such as Salesforce (Apex) or SAP (ABAP).By leveraging these networks, staffing agencies can provide companies with access to highly skilled candidates who may not be actively job hunting but are open to new opportunities. This advantage is particularly valuable in the competitive tech industry, where in-demand skills like cloud computing (AWS, Azure, GCP), containerization (Docker, Kubernetes), and AI/ML model deployment are constantly evolving.
2. Experience Recruiting Technical Profiles
Staffing agencies know how to identify the most suitable candidates for each position, understand the best way to evaluate soft and hard skills, analyze candidates’ previous experience, and determine if they fit the organization’s culture.
This means that a company can feel confident that the agency will send only ideal candidates not just for the project but also for the company’s culture and long-term expectations.
3. Time Savings and Availability of Engineer Candidates
Did you know that the time-to-hire rate for tech roles is 50 days? This is without considering onboarding and documentation.
While the company continues its daily operations, prioritizing tasks and activities, the staffing agency can handle the entire candidate selection process. From posting the job offer to making the final selection.
If the agency already has suitable profiles, it will only be a matter of weeks to conduct the necessary technical interviews to choose the ideal candidate.
4. Cost Reduction and Budget Optimization for Hiring
If you compare the financial cost, time, and resources it will take you to find and hire technology and development professionals, it is much more economical to let the staffing agency handle these tasks.
This way, you can optimize your hiring budget while ensuring you get suitable profiles.
5. Extensive Knowledge of Current Job Market Trends
Staffing agencies possess in-depth knowledge of the current technology job market, including emerging roles, skill demands, and industry-specific requirements. This expertise allows them to provide valuable insights that directly benefit your hiring process.
By leveraging this knowledge, agencies can:
- Identify emerging skill sets that may be crucial for your projects.
- Advise on market-driven retention strategies.
- Provide insights on industry-specific hiring challenges and solutions.
This comprehensive understanding of market trends enables agencies to streamline your recruitment process, ensuring you stay competitive in attracting and retaining the best tech talent for your specific needs.
How to Choose the Right Staffing Agency
When choosing an appropriate staffing agency, it is crucial to consider several factors to ensure that the agency aligns with your company’s specific needs. Here are some key points to keep in mind:
1. Look for an Agency with Experience and Specialization
First, look for an agency with experience and specialization in your industry. This is particularly important in technical or highly specialized fields, such as technology or engineering.An agency with experience in your sector will have a more profound understanding of the skills and qualifications required for the roles you’re looking to fill.
2. Consider the Size of the Agency and its Geographical Reach
The size and geographical reach of a staffing agency can significantly influence its effectiveness in meeting your hiring needs. Large agencies typically have access to a wider pool of candidates, while smaller or boutique agencies often provide more personalized service and focused attention to your specific requirements.
Agencies with global reach offer significant advantages when hiring remote workers or expanding internationally. Conversely, local or regional agencies often have deeper connections within specific markets.
These are the pros and cons of global versus local staffing agencies:
- Global Agencies:
- Advantage: Access to diverse, international talent pools
- Benefit: Ideal for remote hiring and global expansion
- Drawback: May lack deep local market knowledge
- Local/Regional Agencies:
- Strength: Deep connections in specific markets
- Advantage: Better for location-specific hires
- Benefit: Understanding of local culture and job market nuances
For instance, a global agency might excel at finding engineering candidates with niche skills in emerging technologies, regardless of their location. The selection processes and strategies can vary significantly based on the agency’s size and reach, so it’s important to choose one that aligns with your specific hiring goals and geographical requirements.
3. Evaluate the Staffing Agency’s Reputation
It’s also indispensable to evaluate the agency’s reputation. How can you do this?
Look for testimonials from previous clients, review their success stories, and, if possible, talk to other companies that have used their services.
A staffing agency with a solid reputation in the market is more likely to offer quality service and consistent results that you can turn to whenever you need to hire a new candidate.
4. Ensure the Agency has a Rigorous and Transparent Selection Process
Any staffing agency specializing in recruiting engineering candidates should clearly explain how they evaluate and select candidates and how they ensure that these candidates not only fit the skills required for the project.
They should also guarantee that they match your company’s culture.
5. Compare Costs of Working with a Staffing Agency
Carefully compare the costs and fee structures of different staffing agencies.
Make sure you understand all associated charges, including initial fees, placement commissions, and any additional costs for complementary services, in detail.
Also, consider how these costs align with the quality of service offered and the potential value that each agency can bring to your long-term hiring process.
By considering these factors, you’ll be better positioned to choose a staffing agency that meets your immediate hiring needs and becomes a valuable partner for your company’s long-term growth.
Common Misconceptions About Staffing Agencies
If you’re considering working with a recruitment agency, then you may have heard some of the common misconceptions about staffing agencies – things like this:
“They Don’t Care”
You might have heard those agencies just want to get their commission and don’t really care about the quality of their clients.
There might still be some big companies that rely on churn rather than quality, but smaller boutique agencies rely on building a reputation for quality, and the only way they can achieve that is by going above and beyond for you every time.
“It’s Too Expensive”
As we’ve discussed above, there is a financial cost to using a recruitment agency, but there is also a cost to doing it yourself.
While the average cost of hiring a new employee is $4,000, the cost of hiring the wrong person can be devastating to morale and deadlines.
Getting it right the first time is much cheaper.
“Low-Quality Candidates”
Have you ever had a bad experience with a recruiter? Been direct messaged on LinkedIn for a role you’re not remotely qualified for, or been sent a standard email out of nowhere when you’re not looking for work? Some recruiters try and play a numbers game, hoping that if they throw out enough bait, they’ll get a bite.
These are the rare exceptions, though. For most recruiters, and especially the smaller companies, their reputation is based on their ability to find you the right person. The CVs you get as a shortlist should be the cream of the crop.
Conclusion
Choosing the right staffing agency is an important investment for your company. By considering these tips, you can find a strategic partner that will help you find the talent you require.
Here are some final recommendations to keep in mind when choosing and working with a staffing agency:
- Clearly define your needs: Before approaching an agency, have a clear understanding of the skills, experience, and cultural fit you’re looking for in candidates.
- Communicate openly: Maintain open and regular communication with the agency about your expectations, feedback on candidates, and any changes in your requirements.
- Be prepared to move quickly: In the competitive tech job market, be ready to make decisions promptly when presented with suitable candidates.
- Provide feedback: Offer constructive feedback on candidates and the agency’s service to help refine the selection process.
- Build a long-term relationship: Consider the staffing agency as a long-term partner in your hiring strategy, not just for one-off placements.
By following these recommendations, you can maximize the benefits of working with a staffing agency and streamline your hiring process for tech talent.
If you’re looking for a cost-effective strategy that saves you time and enables you to access top tech talent, then partnering with a staffing agency can be the best choice for your business.
Moreover, specialized staffing agencies like DistantJob focus exclusively on helping our clients find tech experts who fulfill their requirements. Our IT recruiters know how to evaluate candidates, ensuring you get the perfect match. Get in contact now!
FAQ
The disadvantages of staffing agencies include potential high costs for employers, as they often charge fees for their services, reducing the overall hiring budget. Additionally, there may be a lack of direct control over the selection process, leading to potential mismatches between the candidate’s skills and the employer’s needs.
The purpose of a staffing agency is to connect employers with job seekers who have job openings. They act as intermediaries, sourcing and screening candidates to match them with suitable job opportunities based on their skills, qualifications, and the employer’s requirements.
There are two types of staffing agencies: Generalists and specialists. Generalists offer recruitment services to any business, while specialists tend to work with a particle sector, for example, care staff or IT professionals.
