Today, many companies are struggling due to a labor shortage. As a result, they are exploring new approaches to hiring, including partnering with a staffing firm.
However, some businesses worry that working with a recruitment agency is either too expensive or cost-prohibitive. Others simply wonder if they would come out ahead by continuing to handle recruitment themselves.
In reality, staffing firms can be low-cost solutions that make securing the talent you need easier. Plus, they can dramatically shorten hiring timelines, allowing you to bring the professionals you need onboard and reach full productivity quickly. If you’re trying to determine if partnering with a staffing firm is right for you, here’s what you need to know about the cost.
What You Need To Know About the Cost to Partner With A Mississippi Staffing Firm
Common Staffing Firm Fee Structures Explained
Typically, recruitment agencies use one of two fee structures depending on the type of hire. For temporary workers or temp-to-hire employees, a per-hour worked approach is what you’ll usually encounter.
With the hourly fee model, companies pay a set amount based on the number of hours the placed employee works. Within that hourly rate is the worker’s pay, as well as funds to cover various operational costs.
The size of the hourly fee can vary based on a number of factors. The nature of the role is a big influencer, as well as the anticipated work schedule, company industry, and hiring volume.
The other fee structure is more common with direct hires. During a direct-hire arrangement, the employee doesn’t spend time on the staffing firm’s payroll. Instead, the company brings them on board right away.
With direct hires, the one-time placement fee is typically based on a percentage of the position’s first-year salary. Again, a number of factors influence that percentage, including how challenging the role is to fill and the company’s preferred hiring timeline.
Regardless of the fee structure, companies receive an overview of the costs in advance. That way, they can see how it will fit into their budget.
Money-Saving Benefits of Partnering with a Staffing Firm
While the presence of a fee may make it seem like hiring on your own is a wise move, it’s important to understand that the money-saving benefits often outweigh the cost. The staffing firm will handle the recruitment and candidate screening, including advertising the opening, conducting initial interviews, verifying skills, conducting reference checks, and more.
As a result, your company doesn’t have to dedicate time, energy, or resources to those activities. You’ll be able to focus on other areas of your operation, including your major profit drivers, all without having to sacrifice the quality of the hire.
Plus, you can reduce your risk dramatically. With temporary and temp-to-hire employees, the worker starts on the staffing firm’s payroll. You aren’t responsible for costs like workers’ compensation or unemployment until you bring the employee onto your payroll.
Additionally, you can use temp-to-hire positions as working interviews. You can see how the employee performs in the role before you extend a permanent offer, allowing you to avoid high-cost bad hires by ensuring they are the right fit.
Considering A Partnership With a Staffing Firm? Get in Touch!
Ultimately, partnering with a staffing firm does come with a cost, but the gains let you come out ahead. If you’re looking for the ideal recruitment firm for your needs, the TempStaff team wants to hear from you. Contact us today.