How Does a Staffing Agency Help Businesses?

Finding people with the right skills has become difficult due to talent shortages. Posting job adverts, sorting application and interviewing candidates take away a large amount of time and make it difficult for entrepreneurs to focus on important business tasks that may hurt business growth in the long run. Staffing agencies in NYC or elsewhere can be of help.

Faster Hiring

The time to fill a vacancy is an important factor in recruitment. According to Glassdoor Economic Research, the average time to fill vacancies is around 22.9 days. However, it changes with industry verticals and may increase in some industries due to skill shortages. The hiring time generally increases due to interview processes and administrative layers involved in candidate review and approval.

The solution to this problem is building a talent pipeline and using advanced application tracking systems. In-house recruiters are known to hire only a few times in a year and it might not be possible for them to build talent pipelines or learn modern application tracking systems.

On the other hand, staffing agencies in NYC or elsewhere are known to have a vast database of ready-for-job candidates with different skill-sets. Since recruitment agencies hire for multiple clients around the year, creating and maintaining such talent pipelines gives them an edge in recruitment.

Lower the Risk of Bad Hires

As per career building survey, 42% of companies have reported a loss of $25, 000 due to bad hires. For some companies, the loss due to bad hires was more; around $50,000. Bad hires are the result of shorter hiring process which does not give enough time to recruiters to screen candidates thoroughly.

In-house recruiters are known to have stringent targets that include balancing time per hire, cost per hire, and quality per hire. Since in-house recruiters are under pressure to meet deadlines, the hiring process often gets negatively impacted. This increases the chances of bad hires.

Many companies offload the risk of bad hires by working with staffing agencies in NYC. Recruitment agencies have a real focus on activity levels and tap different sources in search of great candidates. Their years of experience and knowledge about job market make them expert recruiters with an eye for detail.

Professional recruiters are known to look beyond the information given in the resume and they are more likely to conduct different skill tests and assessments to ensure the candidate perfectly matches the job description. Recruiting agencies also conduct reference and background checks that further reduces the risk of bad hires.

Reduce Hiring Costs

Many organizations take the decision to use in-house recruiters in an attempt to reduce hiring costs.  These organizations only look at the recruitment expenses that are paid as commissions to recruitment agencies. There are several hidden recruitment costs that are never considered when they use in-house recruiters. For example, administration costs, and management time.

Administration costs– when the recruitment is held in-house, you need someone to oversee hiring activities. There are several tedious tasks such as sorting resumes, shortlisting candidates, scheduling interviews, communicating with potential candidates and many other tasks done manually. Think about the long hours that company’s staff puts in such unproductive work. If you calculate the productivity losses, you might be surprised by the alarming figures.

Management time– Managers take part in the recruitment process at some stage. There is so much time spent assessing resumes, matching qualifications and taking interviews but there is no guarantee all candidates will pass through the final screening process. A large number of candidates are rejected which means these processes waste a managers’ time.

With their years of experience, deeper network and knowledge of job market, staffing agencies in NYC or elsewhere are in better position to reach great candidates that may be off the radar for in-house recruiters.

Did you work with a staffing agency in the past? How was your experience?

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