Recruiting via Staffing Companies? Know the Drawbacks

Recruiting is a difficult task and this has been proven time and again. Hiring the right candidate for the job vacancy is probably a muffling task for HR professionals. These days, several companies resort to staffing companies in order to recruit job candidates.

While there are several benefits of recruiting candidates via a staffing agency, but some of the drawbacks cannot be overruled. There are several drawbacks that one needs to focus on. And of course try and rectify them.

So, what are the drawbacks of hiring job candidates via staffing companies? Here’s a look:

#1. High cost of recruiting

The first drawback of hiring or recruiting via a staffing company/agency is the great cost of hiring that the organization has to bear. Working with a staffing company requires you to pay a fee for their services. If you use a temporary staffing firm to hire employee you are paying a substantial mark up over the employee’s compensation package which covers administrative costs, taxes, and some profit for the agency.

If you chose to hire directly from their pool of candidates, you will be required to pay a percentage of the employee’s salary directly to the staffing company. These costs can be negotiable but are unavoidable. Before utilizing third-party recruiters, consider your budget and assess ROI potential.

#2. Lack of control over the recruitment process

For many Human Resources professionals or hiring managers it becomes difficult to give up the control over the recruitment process. You want to read every resume and interview every candidate. While the staffing company is usually in the process of consolidating the top candidates and hand them over to you. It can be frustrating to take yourself out of the process altogether.

#3. No direct access to candidates

Another biggest disadvantage of recruiting via staffing companies is that, HR professionals usually have an indirect access to job candidates. Without being part of the staffing experience since the very beginning it is very difficult to assess a job candidate before they arrive at your office. You need to trust that the recruitment company that they have done all the needful exercises that need to be done — like conducting references, completed skill assessment and conducted background checks as well. At times, this can become a little difficult, because as a HR professional or recruiter you do not have control over such things.

#4. Certain communications issues

Another major drawback, of hiring via staffing companies is the fact that, there’s no direct communication between the company and the candidate. This can be frustrating for the original hiring company, as clear communication always makes it easier for the recruiting company, no doubt.

The best way to sort these issues is to make use of HRMS software — either within your organization, or your recruitment company’s system. The more documentation you have on all of these topics the less likely there will be disagreements and other communication breakdowns.

Working with a third-party staffing company, may or may not be the right solution for your company. However, even if you want to opt for working with a staffing company, always remember to your homework before hand and then opt for it.

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