What Is a Staffing Agency? Their Function and Meaning

What Is a Staffing Agency? Their Function and Meaning

February 14, 2024

Staffing agencies form the linkage between job seekers and employers by assisting in the recruitment process of organizations to get qualified applicants for the openings available in the organization. For businesses which are operating on a small scale, the process of hiring can become very exhausting thus outsourcing the process of recruiting can become a savior for such organizations. From reviewing applications, and conducting interviews to setting salaries requires an enormous amount of time for a regular business owner, that's where staffing agency come into play. The employers tie up with recruitment firms which helps them by providing eligible workers for the open positions in a very short period without any exhausting efforts to find suitable candidates.

How do staffing agencies work?

 Today in this technology-driven world small businesses still find it difficult to find potential employees. An employment agency can assist your company in overcoming that difficulty. Whenever you opt for working with a staffing agency the procedure that usually occurs goes as follows.

1)    The employer of an organization gets in touch with the recruitment firm. You should initially contact those employment firms which specialize in the field of your organization. Explain to them about the criteria that are required for the position and the number of employees that are needed. Once the basic queries have been made you can work towards forming a timetable for hiring new employees and deciding the hourly pay or salary.

2)    Once the details are collected by the recruitment firm, it further prepares and publishes a job description for your organization. The firm contacts them directly If there is a confident applicant who is likely to be an appropriate match for the position. 

3)    The agency starts examining the candidates. Based on the applications submitted for the advertised positions, the firm assesses the experience and qualifications of the candidates and shortlists them for conducting interviews. 

4)    The recruitment firm shortlists candidates; the final decision is always in the hands of the employer. After the interviews are taken by the firm, the company owner or its hiring manager may interview the final shortlisted candidates once by themselves. This saves time for you as an employer as you don't need to go through the applications of all the candidates. Otherwise, it would get spent on screening a high number of applicants.

5)    It is in charge of the documentation. Most outsourcing services handle all administrative tasks associated with new workers, such as contracts, taxes, and other payroll-related obligations.

What are the benefits of working with a staffing agency?

After the COVID pandemic, the global scenario has changed significantly in the way employers choose to work. Employers are also increasingly shifting to part-time freelance workers who can work for a specific period on a contract basis. Staffing agencies have proved themselves to be a valuable resource for talent gathering very quickly and efficiently. We have tried to accumulate some of the major benefits of staffing agencies here below for your business.

1)  Fast Hiring

The labor market has shifted dramatically in recent years as mentioned above, and thus the hiring process is becoming longer, exhausting and more difficult than in prior decades. Simply the staffing agency helps in reducing the time for the recruitment process and makes it easier for you to get a potential workforce. Using a reputable employment agency might help you save time and money. Such a service can pre-screen and qualify candidates to guarantee that the manager only interviews candidates who are a good fit for the job

2)  Reduced team workload

The hiring process is managed by the members of your firm which puts an increased amount of pressure on them. Thus one of the main features of employing the outsourcing services of an agency is that it removes that extra workload on your core team so that they can focus themselves on more productive work of the organization. A recruitment firm can concentrate on the hiring process; after all, that is its primary purpose. However, requiring your staff to devote some of their work time to assessing and interviewing multiple individuals may disrupt their daily routine and impair productivity. That challenge is solved by a recruiting agency.

3)  Flexibility

These days companies are trying to be more productive thus they want to spend zero sum of money if the business they are creating is not going to get help from it. That is the reason why companies are interested in hiring temporary workers because they only need to pay them a salary when there is a need for them in the company and they are working productively. Employers of this generation have quickly realized that instead of a rigid system of manpower a more dynamic fluid manpower is needed to meet their hiring needs. Thus the flexibility of hiring an executive recruitment agency became the main driver in the effort to focus on a manpower that is capable of adapting to the fluctuating nature of a client's business demands.

4)  Specialized hiring

Most employers are unable to fill a vacant position in their organization due to the lack of required skills in a job seeker. To get highly skilled manpower a staffing agency can help you the most. Some specialized staffing agencies solely work in a limited domain like in the tech or legal fields. Due to this small domain of work, they have a wide range of connections, resources and accumulated pools of passive candidates for filling the vacant positions of an organization.

5)  Reduced risk

Taking the whole procedure of recruitment into your hands as an employer also involves a lot of legal responsibilities coming your way. This includes covering certain taxes, looking at the health insurance plans of the team and following labor laws. Apart from these responsibilities, additional financial risks are also involved in hiring employees, especially when someone new leaves the job unexpectedly early. A staffing firm saves you from all these troubles and provides you with a risk-free recruitment process.

Why do companies use staffing agencies?

Companies use staffing firms for a variety of purposes, including:

Improved budgetary controls.

One of the main reasons businesses turn to staffing firms is to hire more people to deal with an increased workload. Staffing firms can assist you hire swiftly, saving you the money you'd otherwise have to pay existing employees to work extra. You save money on screening and testing fees by handling the entire procedure, these businesses also help (incurred while performing background checks, drug tests, and so forth).

A vast network.

The scouting process can be far more efficient than if your organization posted the job position directly because staffing firms frequently have a large network of potential people searching for work.

Expertise is available.

Staffing companies have a track record of outstanding talent acquisition. As a result, outsourcing the process may yield superior results.


Staffing companies handle the entire hiring process, from screening to training and onboarding new employees. This frees up time for your management staff to devote to more vital tasks.

There are other options, if you do not believe that hiring a staffing agency is the best option for your organization, such as advertising a position on a remote talent acquisition site.

How to choose a staffing agency

Choosing the right employment agency is very important because the number of pseudo agencies which are frauds is increasing rapidly these days. You need to predict the knowledge base and competence of an agency before tying up with it. Choosing the right staffing agency which is reliable and reputable is essential. You must select one that is trustworthy and renowned, If you decide to employ a staffing agency, Consider the following simple suggestions:

Have clarity.

You should have a clear picture in your mind about the types of employees you want in your organization. Once you have clarity in your mind the next step is to communicate your ideas to the employment firm. Be clear and explicit about who you want for the job. Clearly outlining your requirements can assist the agency in fine-tuning its talent acquisition.‍

Determine your staffing needs.

Ask this question to yourself before indulging in the tie-up. What kind of staffing do you need? Is it a position of permanent staffing or is it just temporary staffing? Calculate the cost of keeping a long-term employee versus a more dynamic contract-based flexible employee.

Identify agencies that fit your budget.

Staffing companies often bill their clients on a net bill basis. This contains the pay rate—the amount of money they will pay the employee—as well as a markup—a surcharge that covers all employee perks, taxes, and a finder's fee. Ensure to consider all of these elements when selecting a budget-friendly agency.‍

Examine the legal aspects of the position you're filling.

To protect yourself from any dispute that may arise in the legal aspect, first examine the contracts and documents thoroughly to ensure that both parties are protected from legal clashes. You should know all the legal needs of your organization and further, clearly communicate all these requirements to the staffing agency while it is drafting your documentation. The process of hiring should happen under your control. Many staffing agencies take some control over the staffing process and thus the employees hired through them consider themselves as employees of the staffing agency.

Maintain sufficient control over your hiring procedure.

Employment agencies, by definition, take some control of the hiring process away from your organization. People employed through a staffing agency are considered employees of the agency and work to fulfill the terms of the contract. Make sure the contract matches the work you require, the hours people are expected to work, the functions they must perform, and so on.

Choosing the ideal employment firm that suits your needs can be a process of trial and error. So be patient while fresh agencies send you candidates.

Is a hiring agency a good fit for your company?

The use of a staffing agency has its perks as well as demerits. The time taken in the hiring process is significantly reduced by the use of an executive recruitment agency. It helps in maintaining workload balance for the employees of an organization and offers high flexibility by providing both permanent staffing and temporary staffing services. On the side of demerits, we can consider the excess fees which some agencies charge which sometimes range as high as the total annual salary of the employee it places in the organization.

The best recruitment process thus can be formed by a hybrid version of hiring a staffing agency and using your internal resources to some extent. It can be a good idea to combine an agency’s efforts with additional internal vetting to ensure the optimal fit. If you decide to employ a recruitment firm exclusively, make sure to carefully examine your company's objectives, ambitions, and finances; do a thorough background and reliability check; and explicitly convey your hiring demands.

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