Why Use a Staffing Agency?
Written on June 2, 2010 at 6:46 pm, by HRDyn
Consider a scenario where a company decides to do its own staffing by advertising in the local paper and on Monster.com. With today’s level of unemployment and “under” employment these ads will likely produce more than 100 resumes from applicants. The Company now must go through a screening process and select the “most qualified” applicant to fill the open position. The steps in the process would look like:
1. Assign one or two knowledgeable existing employees to screen the 100 resumes.
2. Assure that those doing the screening are consistent in their criteria for inclusion.
3. Select the 10 “best” resumes for further screening by Senior Management and/or the Hiring Supervisor.
4. Schedule face to face interviews for the 5 “best” applicants.
5. Senior Management and/or Hiring Supervisor interview each applicant for approximately one hour, and then meet to agree on the best two applicants for follow up interviews (as a courtesy someone must call the 3 applicants who were rejected).
6. Follow up interviews with the two “best” applicants.
7. Check references and do background checks at state and federal level on the finalist applicant. Make offer to finalist and prepare for the possibility of negotiating compensation.
On average, the total time commitment to complete a hiring process like the above is at least 8 man-days of management time – very valuable time. Has this process produced the “best” candidate? Or would it be better to outsource to a staffing agency?
In our experience the first mistake most companies make in conducting the hiring process in house is the screening of the initial 100 resumes. Resume evaluation is a learned skill; resumes are written to “puff-up” the applicant. Experienced staffers who review resumes every day are able to see through the hype and identify the red flags such as gaps in chronological time, lack of promotion to greater levels of responsibility, logical reasons for job changes, etc.
The other areas that are difficult for companies doing their own hiring is the in-depth interview, testing of skills, and reference checking. People doing in-house staffing usually have not had formal training on interviewing skills and the legal constraints of interview questions. Also, most companies do not have web based skill and personality tests proven to be effective predicting an applicant’s success in a specific job category. And, finally, reference checking is very difficult as former employers are reluctant to provide information other than hire and termination dates.
On the other hand, a good staffing agency is solely focused on the hiring process….from in-depth interviewing techniques to skill testing to reference checking. That’s their business. A good staffing agency should be able to demonstrate an 85% or better retention rate of employees they have placed with their clients.
Consider your management time spent on the hiring process and the probability of getting the best applicant. The staffing agency is likely the better bet, well worth the fee.
Also consider the flexibility of using the staffing agency’s “temp to hire” program where the applicant you select for the open position is on the staffing agency’s payroll for 3 months. During the try-out period there will be no questions asked if the new person does not work out and the staffing agency is paying, as part of their fee, for all taxes and workers’ comp.
Combine the staffing agency’s expertise and total focus on the hiring process with the option of 3 month try out period, a Company has, by far and away, the best chance of hiring a truly outstanding employee whose work will pay major dividends for years to come.