Staffing agencys serve the purpose of providing temporary help for the most part to businesses who may want to hire people initially in that manner, to see who might work out and who might not.
The temporary agency philosophy can be used to bring in workers quickly to solve short term needs, and then they can be dismissed back to the staffing agency when the short term need is satisfied.
Another tactic is to use the staffing agencys as an ongoing strategy for all of the company’s hiring purposes. The staffing agency then acts as an human resources department in that they will do the recruiting, interviewing and testing and then send the workers to the hiring company.
The hiring company does not have to gear up for that function as it is being outsourced to the staffing agency. As job requirements ebb and flow, the hiring company can pick the cream of the crop if they need extra permanent employees.
When working in a contract to hire situation like this, the employer does not have to go to the expense of putting the temporary worker on benefits either, until the decision is made to bring that person on permanently. This saves quite a bit of money and time just from an administrative and cash flow position.
There are economies to scale in using this type of format to hire workers, as there is no payroll to keep on the temporary workers, as that is being done by the staffing. Also there is no time spent in all of the preliminary steps of pre-employment interviews and training, as that can all be done by the staffing agency. That gives the employer the best of both worlds since time can be spent by both entities on tasks that they both do well.
A staffing agency can also perform full duty recruiting for employees who are desired for management positions, more in the role of executive recruiting. When a company works with a staffing agency over a longer period of time, the staffing agency gets to know the needs and the culture of the place where a new executive will be working.
This factor allows the personnel of the staffing agency to be more in tune with what is really going on and what the hiring company needs in the way of management personnel. It can become a very symbiotic relationship, much as if the staffing agency were a part of the company itself.
The history of such relationships overall over the past 20 years or so has been a good one. The incentives are all there as far as performance, and in fact those incentives are probably enhanced, as the staffing agency wants to do well to keep its contract, and the employer wants to keep a good partner because of the satisfactory results that are being produced.
This is an arrangement that has worked well for companies, and it is another example of how innovative ideas can work well for all parties concerned.