How Do Staffing Agencies Affect The Job Market?

There is still a significant difficulty for many small businesses in attracting and retaining competent employees. The study reports that a record-breaking 69% of companies worldwide are having trouble finding employees with the ideal blend of technical, soft, and personal abilities. Your company can get through that obstacle with the help of a staffing agency.

If you need new employees and decide to engage with a staffing agency, the following usually is how it goes down.

The hiring company makes initial contact with the temp service. In the first step, you’ll contact an industry-specific staffing agency and describe the role(s) you’re trying to fill, the number of people you’ll need to hire, how quickly you’ll need them, and how much they’ll be paid per hour or per year.

The agency itself makes up the job description. Next, the hiring firm will draught a job description and post it on your company’s behalf. If it determines that a particular individual would be suitable for the position, it may make direct contact with that person.

The agency screens employment candidates. When people apply for a job opening, the staffing agency evaluates their credentials and work history to see who is a good fit for the role before setting up interviews. They will select the most promising candidates to present to your company’s recruiting manager.

The decision is ultimately up to the employer. The hiring manager or business owner will interview the top prospects recommended by the recruiting firm. This eliminates the need for you and your staff to spend a lot of time screening applications.

The agency handles the documentation. Most temp agencies take care of all the administrative duties, such as contracts, taxes, and payroll, that come along with bringing on new employees.

The fees charged by most staffing firms range anywhere from 25% to 100% of the gross salary of the individual they place. Thus, if the new hire’s hourly wage is $10 and you and the staffing agency have agreed on a markup of 50%, you will pay the agency $15 for their services.


Additional costs may be associated with hiring a temporary worker, such as the cost of advertising the position or buying out their contract.

The need for part-time, freelance and temporary workers has increased, and staffing firms have grown in importance as a means for companies to find qualified candidates quickly and affordably. The correct employment firm can provide several advantages for your organization, some of which are listed below.