The staffing industry in the United States is all set to become a billion-dollar industry, as the industry experts predict that the industry would generate a staggering US $150 billion in revenue for the year 2017. As the demand for flexible recruitment options such as temporary workers, contract hires, and temporary-to-permanent hire increases at short notices is on the rise, companies look towards full-time recruitment specialists who can offer them top talent easily.
As the economic volatility continues, businesses try to reduce their administrative expenditure, save time and money for more productive tasks, delegating administrative functions to experts in those respective fields. Recruitment is one such area, that businesses are comfortable delegating to specialist recruiters.
Staffing agencies work as full-time recruiters, unlike the in-house recruiters who recruit according to the fluctuating demands of the businesses, they invest heavily in building a database of qualified and experienced workforce who are both active and passive job seekers. With such a robust talent pool at their disposal, staffing agencies offer flexible recruitment options, which help cut costs by sharing the overheads among their clients in addition to many other benefits. As such about 90% of the businesses prefer recruiting personnel though a reputed staffing agency, the popularity of these agencies is increasing by the day. Some of the factors that make staffing agencies so popular include:
Savings in Time: On an average, businesses spend about a month to conduct interviews, select the right candidate and make a final offer. However, a lot goes before and after that which makes the overall time spent for recruitment even larger. In addition, selecting a wrong hire would require companies to repeat the process investing furthermore time. Working with a recruitment agency that has a good database of qualified and experienced candidates’ will save the productive time for businesses.
Savings in Costs: According to estimates, in-house recruitment costs about 1/3rd of the salary of an employee in recruiting and selecting that candidate. In addition, you will have to spend more in training, etc., and in case you hire a wrong candidate, the costs could go further high. Hiring a staffing agency will help you avoid all such costs as a staffing agency with an understanding of your requirements will shortlist candidates with relevant qualifications and experience. Hiring through a recruitment company will help you save costs associated with employee benefits, as the agency will handle their compensation from payroll to health benefits, and more.
Flexible Options: The ability to scale up or down offering flexibility in managing the workforce is the number one reason staffing agencies have become very popular with businesses of all sizes. Businesses often have employees go on emergency, unscheduled leaves, or see a spike in demand or vice-versa, which demands the management to scale up or down the workforce, so they maintain the right production levels for high demand season and not employ excess staff during the times of low or regular demand. Staffing agencies offer this flexibility in managing workforce.
Guarantees Quality Workforce: Experience says that with in-house recruitment more than 84% of the new hires fail to deliver, requiring businesses to invest further in training them or hiring new employees both of which are time-consuming and expensive processes. Such training or re-hiring will have a negative impact on business with delays and missed opportunities. When you delegate your hiring to permanent staffing agencies in San Francisco or anywhere in US, they take complete responsibility to make sure you get the best candidate who can deliver in accordance with your expectations, in case a candidate fails to meet your performance levels, the agency will, within a certain time, replace the candidate so that the business is not impacted.