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Compelling Stats to Debunk 5 Common Misconceptions of Hiring with a Staffing Firm

Compelling Stats to Debunk 5 Common Misconceptions of Hiring with a Staffing Firm

The Businessman Choosing the right person employing


41% of companies surveyed by the American Staffing Association cited access to more candidates as one of the top reasons for using a staffing firm. These companies also have more time to gauge the fit before hiring, access to talent with specialized skills and the ability to increase their workforce quickly. With all of these benefits come some unknowns, especially for companies using a staffing firm for the first time.


We’ll outline some of those misconceptions that you may have about working with a placement company to find employees so these unknowns don’t keep you from experiencing a dynamic partnership.


Myth # 1: Working with an employment agency is expensive.


Hiring great employees to help your company grow and contribute positively is no small feat and it’s costly. But what happens when that 90 days is up and you realize the employee you thought would help grow your company is not meeting your expectations? It costs you even more money.


According to data from CareerBuilder survey shared by FastCompany, 38% of companies believe they hired a bad employee because they needed to fill a position quickly and 21% said they didn’t research or test the applicant’s skills well enough.


A bad hire costs you not only time but money. In the same CareerBuilder survey, 41% of respondents said a bad hire cost them $25,000 a year. When you compare this data to data from Bersin by Deloitte (via Staffing Industry Analysts), there is serious potential to spend more in a bad hire than a good hire. The data from Bersin by Deloitte states the average cost per hire using talent acquisition in 2014 was only $4,000.


Myth # 2: Talent won’t be long-term, committed employees.


Hiring a staff member for a permanent position doesn’t mean they will be long-term and committed any more than hiring someone on a temp-to-perm or temporary basis. For many companies, hiring for contract or temporary positions is highly desirable. The skills and insights contracted employees can bring to a company can be invaluable.


On the flip side, according to data from ASA, one-third (35%) of staffing employees were offered a permanent job by a client where they worked on an assignment (contracted work).


The flexibility of a temp-to-perm or even a temporary position attracts top talent in nearly every industry and in our experience the candidate’s contract doesn’t correlate with commitment.


Myth # 3: Employment agencies only staff entry-level, unskilled positions.


While many staffing firms will employ entry-level positions, most are professional placements. In fact, according to ASA, the average wage is more than $17 per hour; some placements more than $100 per hour. Common high-skilled positions include engineering, tech, and financial.


If there’s a position your company needs it’s very likely there’s a placement company that can staff that position.


Myth # 4: A recruiter wouldn’t know what my company needs.


Finding top talent takes proactive searching, metrics on passive candidates, and a pool of skilled candidates. Basically — the work of a full-time recruiter. According to Novo Group though, 65% of companies have 2 or fewer recruiters in-house.


This means 80% of companies use outside recruiting help. That “help” comes in the form of placement services also known as staffing companies.


Staffing firms specialize it people — it’s all we do. We get to know organizations and the people they need all day, every day and we use these tactics of proactive searching, metrics and more. A bulk of companies today are using firms in this kind of partnership to tap into a pool of candidates immediately as needs arise.


Contact us today or send us a tweet if you have more questions about working with an employment agency!